What is Ripple (XRP)?
Ripple is a money transfer and payments network that processes payments worldwide, with XRP being the network’s native currency. Unlike Bitcoin or other digital assets, Ripple was designed to create a frictionless transaction between two parties without needing a bank or other financial institution. Similar to Ethereum, Ripple is a blockchain platform that can be used internationally for high-speed international transactions.
When a user makes a transaction using XRP, the network charges a small fee that is deducted in XRP. XRP can be used to exchange various fiat currencies, other cryptocurrencies like Bitcoin and even assets such as gold — making it a fierce competitor for traditional financial institutions.
It’s worth noting that while Ripple is a decentralised network, similar to fellow blockchain Ethereum, it is a privately owned company and has a default list of validators. Some experts argue this makes the Ripple network somewhat centralised and goes against the natural philosophy of cryptocurrency — to be an independent facilitator of transactions.