Ripple and its token, XRP, have been tearing things up in the crypto world since 2012, setting itself apart from other cryptoassets thanks to its lightning fast transaction speeds. With that being said, newcomers to crypto can sometimes have a hard time distinguishing between a network and its coin. That’s where we come in. We’ll be exploring what exactly Ripple and XRP are, and their key differences.
What is Ripple?Simply put, Ripple is a cryptoasset, and network, based on the principles of blockchain technology. However, it is not technically a
blockchain. Created and owned by RippleLabs, it uses open-source technology to beat Bitcoin in speed, and banks and other financial institutions in fees. Having launched in 2012, Ripple soon exploded onto the crypto scene. It now has a current market cap of $31.627 billion, that’s pretty impressive in such a competitive environment.
While Ripple has its own currency (XRP – but more on that later), it also allows its users to create their own tokens via their network,
RippleNet .
https://www.youtube.com/watch?v=Uy5e26c6P2YWhat is XRP?XRP is Ripple’s coin. Ripple has a definitive number of XRP in rotation – 100 billion tokens to be precise. These tokens are released by RippleLabs, which currently holds about 60 billion in escrow, with 1 billion coins being released a month. XRP works because there is no mining involved, all tokens are premined, and therefore they can be traded with the lowest possible transaction costs.
XRP’s price is far lower than BTC or ETH when it comes to transaction fees, and is ideal for cross border transactions.
What Are The Key Differences Between XRP and Ripple?So, what are some of the key differences between XRP and Ripple?
XRP is a coin while Ripple is the network.
While both XRP and Ripple are owned by RippleLabs, they have two very different functions.
XRP is tradeable, Ripple is the network that XRP is traded on.
https://www.youtube.com/watch?v=cfeGCQ1xwg0XRP vs Ripple: What’s the difference?
We hope this guide has helped you identify some of the key differences between Ripple and its token XRP. While both are owned by RippleLabs, they function in very different ways. Namely in that the XRP coin is traded on the Ripple network. As the XRP price continues to climb, we’re sure that Ripple will expand its services too. With lightning fast transaction speeds and the backing of major financial institutions, the XRP coin is giving other cryptocurrencies a run for their money. Think you’re ready to start trading?
Join the ranks here .
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework. Your capital is at risk.https://www.etoro.com/blog/market-insights/the-key-differences-between-xrp-and-ripple/
