What is Ripple (XRP)?
Ripple, often known as XRP, is a digital currency created as a standard of exchange on the Ripple payment protocol. It exists fully within the Ripple Payment and Exchange Network and can be used to facilitate transactions between traditional fiat currencies and other cryptocurrencies across the payment network.
How does the ripple coin work?
Unlike Bitcoin, Ethereum and other major cryptocurrencies, Ripple is not mined. Instead there is a fixed stock of 100 billion XRP controlled by the founding company, Ripple Labs. The company's founders retained 20% of the stock of XRP for themselves and left the remaining 80% with Ripple Labs.
The company in turn has publicly committed to release a maximum of 1 billion XRP monthly until all of the remaining XRP are in circulation. This fact is a matter of some controversy as it directly implies there is a central entity controlling its supply-a concept anathema to many cryptocurrency enthusiasts.
What is the value of ripple today?
The value of XRP gained significantly through late 2017 and early 2018, becoming at time of writing only second to Bitcoin in overall market capitalization. Much of this can be attributed to the impressive growth in the Ripple Network. It is ultimately reasonable to expect the valuation of XRP will largely track the adoption of the Ripple Network as a facilitator of currency transactions.
Understanding the Ripple Network
To understand XRP it is important to discuss the Ripple Payment and Exchange Network: a fast-growing venue for cross-border payments which has gained acceptance from major global financial institutions.
Financial institutions and individuals can transact on any number of government-backed currencies and cryptocurrencies on the Ripple Network and do not need to use XRP. Yet the usage of XRP effectively eliminates counterparty risk and likewise facilitates cross-currency transactions and liquidity for other currencies.
How to trade Ripple
You can track the price of Ripple on our currency chart, and read all the latest ripple coin news and analysis to support your cryptocurrency day trading.