What Is XRP?
XRP is a cryptocurrency and token Ripple Labs uses to facilitate transactions on its network. XRP primarily enhances global financial transfers and the exchange of several currencies.1
Investors also use it to store value and profit from price fluctuations.
KEY TAKEAWAYS
- XRP is a cryptocurrency and the native token of Ripple, founded in 2011 by Jed McCaleb and Chris Larsen.2
- XRP is pre-mined and has a total supply of 100 billion tokens.
- XRP is more cost-effective, has faster transaction times, and is less energy intensive than bitcoin.
The History of XRP
Ripple is a centralized financial technology (fintech) company building different products to solve global payment issues through its remittance system, payment settlement, and exchange. The company began as Ripplepay, founded by software developer Ryan Fugger in 2004.3
This period was before Bitcoin, the world’s leading cryptocurrency, came into the spotlight. Ripple was later co-founded by Chris Larsen and Jed McCaleb in 2012.4
The goal behind Ripple was similar to the vision of Bitcoin creator Satoshi Nakamoto, which was to foster an easier, faster, and more secure way to make transactions globally. The tradeoff with Ripplepay was that it didn’t rely on the blockchain; instead, it was centralized.
In 2011, McCaleb, David Schwartz, and Arthur Britto started developing the XRP ledger as a recourse to the inherent limitations of Bitcoin. In 2012, when the XRP ledger was launched, it incorporated the native token XRP to aid its function. This team of engineers was later joined shortly after by Larsen, who now sits as Ripple’s executive chairman and co-founder.2
Ripple changed its name several times from 2012 to 2015. First, in 2012, it changed its name from Newcoin to OpenCoin. Then, in 2013, it was renamed Ripple Labs. Finally, in 2015, it rebranded and became Ripple as its popularly known today.2
Ripple and XRP
Although XRP is often referred to as Ripple, it’s important to know that XRP is an open-source digital asset independent of Ripple, which is a technology company. Due to its fast, efficient, reliable, carbon-neutral, and fast delivery, XRP is the technology that Ripple uses in its solutions to help customers stay compliant.
