XRP is considered one of the oldest and most famous cryptocurrencies in the market, but it fundamentally differs from Bitcoin in its purpose and operation.
1. What is XRP?
It is the native digital currency of the RippleNet network, an open-source payment network developed by Ripple. XRP is designed to be a fast and low-cost intermediary for transferring money across borders.
2. How does it work and why is it distinctive?
Instead of using "mining" like Bitcoin, XRP relies on a Consensus mechanism that makes it:
Super fast: transactions are settled in about 3 to 5 seconds only.
Nearly zero fees: the cost of transfer is negligible (less than one cent).
Environmentally friendly: it does not consume vast amounts of energy because it does not require powerful mining devices.
3. The difference between XRP and Ripple
Many people confuse the two, and the difference is:
Ripple: the for-profit company that develops software for banks and financial institutions.
XRP: the digital currency (digital asset) that operates on the independent "XRP Ledger."
