The Ripple payment, XRP, system is mainly intended to be used by banks, although individual investors may speculate on the price of XRP.
XRP is the native cryptocurrency for products developed by Ripple Labs. Its products are used for payment settlement, asset exchange, and remittance systems that work more like SWIFT, a service for international money and security transfers used by a network of banks and financial intermediaries.
XRP is pre-mined and uses a less complicated method of the mining as compared to Bitcoin.
How Ripple (XRP) works
Ripple developed the XRP ledger to facilitate cross-border payments between banks around the world. The ledger is a permissionless network of peer-to-peer servers that powers XRP operations.
XRP is the native token and is intended to act as a “bridge” between hard-to-match fiat currencies. So if, for example, there are no market makers on the network willing to trade shekels for shillings, one can sell the former for XRP and then use it to buy the latter.
The XRP ledger uses the Ripple Consensus Algorithm, which differs from proof-of-work and proof-of-stake mechanisms in that network participants are known and trusted by other participants. Unlike miners, they are not rewarded for securing the network. Once validators agree, a new block – a “ledger version” – is created and validated. The block’s content cannot be changed. This allows servers in the network to store a complete history of the ledger state.
How Do You Buy XRP?
You can buy XRP on any exchange that offers digital currency. For the latest list of exchanges and trading pairs for this cryptocurrency, click on our market pairs tab. Remember to do your own research before choosing an exchange!