What is Ripple (XRP)?

By July 8, 2020March 28th, 20224 minute read
What is Ripple (XRP)

Bitcoin first popularised the ‘peer-to-peer electronic cash’ idea. However, there is a cryptocurrency system that came after it and intends to replace SWIFT. The protocol is already functioning as a currency exchange system for banks and other financial institutions. Yes, we are talking about Ripple.

Conceived by San Francisco based Ripple Labs in 2012 (renamed Ripple in 2015), Ripple has become incredibly popular in the cryptocurrency space. Rebranded to RippleNet in 2019, the payment system facilitates fast, and frictionless cross border monetary settlements with minimal fees. This makes it an ideal choice for remittance transactions.

XRP, RippleNet‘s native crypto token powers all financial transfers on the network. The cryptocurrency has a strong and vibrant community supporting it on Twitter. Before going any further, let’s first look at what got it started in the first place.

History of Ripple

Ryan Fugger first conceptualized the idea in 2004. He then went on to develop the first prototype of a decentralized digital monetary system called RipplePay. RipplePay saw the daylight of reality in 2005. Its purpose was to provide secure payment solutions within a global network.

In 2012, Fugger handed over the project to Jed McCaleb and Chris Larsen and together they founded the US-based technology company OpenCoin.

Folks at OpenCoin started building Ripple as a protocol focused on payment solutions for banks and other financial institutions. In 2013, Ripple Labs became the new name of the company. Finally, the company reduced it to just Ripple in 2015.

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How Does RippleNet Work?

Ripple’s payment protocols have evolved and come a long way. In Q4 2019, the San Francisco based firm united all its products under one umbrella network – the RippleNet.

RippleNet is an ecosystem of banks, payment providers, and other such financial institutions. According to Ripple, RippleNet is

the most advanced blockchain technology for global payments—making it easy for financial institutions to reach a trusted, growing network of 300+ providers across 40+ countries and six continents.

RippleNet utilizes a single and decentralized infrastructure across the entire network, eliminating the need for custom integration work. The network provides an additional On-Demand Liquidity service that allows transfers of value and exchanges across the world.

This year has seen more than 200 banks sign up for RippleNet with On-Demand Liquidity hosting around 15 companies with more members taken on board.

On-Demand Liquidity leverages Ripple’s cryptocurrency XRP to ensure the successful fulfillment of monetary transactions.

How Does XRP Work?

XRP is the native token of the XRP Ledger and serves as a vehicle for transfers on the RippleNet. XRP Ledger is an open-source, permissionless, and decentralized blockchain. According to Ripple, it can settle transactions in 3 -5 seconds.

Users transacting on the Ripple network also use XRP to pay for network maintenance fees. XRP has a total supply of 100 billion units. These are indivisible, unlike Bitcoin.

Ripple’s XRP Cryptocurrency
Ripple’s XRP Cryptocurrency, Source: Pixabay

Out of these 100 billion units, millions were distributed in various stages of airdrops, preliminary sales, or private placements.

XRP also was distributed to multiple owners, including banks, for testing. The current circulating supply of XRP is a little more than 44 billion. Ripple has a smart contract operated escrow system in place, that releases 1 billion coins every month in the market.

The escrow takes back all unused XRPs after the month to avoid oversupply or misuse.

Private Funding and IPO Plans

Ripple boss Brad Garlinghouse announced plans to take the company public ‘in 12 months’ at Davos this year. This comes after the firm raised $200 million with a $10 billion company valuation in Q4 2019.

The company has primarily been privately funded since 2013. With prominent VC players such as Andreessen Horowitz, IDG Capital Partners, Google Ventures, SBI Holdings participating in funding rounds to date, Ripple has raised close to $292 million (along with capital raised from cumulative funding).

Ripples Venture Funding Since 2013
Ripple’s Venture Funding Since 2013

How and Where to Buy Ripple (XRP)?

Now that you know the basic premise around Ripple and it’s underlying mechanism, you might want to buy some XRP.

Cryptocurrency exchanges can serve as the most appropriate place to buy XRP. At WazirX, we offer the safest and fastest platform for you to get your hands on the Ripple token right away.

First, you need to set up your account. For that, you will need to provide a valid ID proof for a mandatory KYC process and your bank account details. It takes a few hours to verify the information shared from your end, after which you are all set.

You can go ahead and directly buy XRP using the funds from your bank account. Or you can leverage WazirX’s ultra-fast P2P feature to swiftly and securely buy XRP. For more information on that check out this link: https://wazirx.com/p2p

Further Reading:

How to Buy Ripple (XRP)

What are the Differences Between Bitcoin and Ripple?

What are the Differences Between Ripple (XRP) and Ethereum (ETH)?

5 Ripple (XRP) Myths you Should Stop Believing

8 Benefits Of Investing In Ripple (XRP)

Difference between Litecoin (LTC) and Ripple (XRP)

How to buy Bitcoin in India?

Can I Invest In Cryptocurrency?

Yes, with exchanges like WazirX, you may invest in cryptocurrency in India. To begin, go to the WazirX website and register. After that, you will receive a verification email. The link received by verification mail will only be available for a few seconds, so make sure you click it as quickly as possible. This will successfully verify your email address. The following step is to set up security, so choose the best solution for you. After you've set up the security, you'll be given the option of continuing with or without completing the KYC process.

What Is The Safest Cryptocurrency To Invest In?

Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.

Is Cryptocurrency Safe To Invest In?

Cryptocurrency investments are subject to market risks, but if sufficient security measures are not taken, trading accounts can be maliciously accessed. Investments come with risks and uncertainties, and we cannot claim that any digital currency investment is risk-free. Buying and selling cryptocurrencies can be risky even if the trader is knowledgeable about the market and treats their coins carefully.

What Are The Best Cryptocurrencies To Invest In?

The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.

Is Mining Cryptocurrency Legal?

Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.

Is Ethereum Safe To Invest?

The Bitcoin market is unquestionably more volatile than the stock market. This may not be the market for you if you are incredibly risk-averse. Ethereum, on the other hand, may be a terrific investment for you if you're a diamond-handed investor who won't lose sight of short-term losses. Ethereum is a relatively safe investment as it is also based on blockchain.

How To Invest In Cryptocurrency Stocks?

Cryptocurrency can be purchased in two ways: through mining or exchanges. The process of confirming and adding transactions to the blockchain public ledger is known as cryptocurrency mining. Cryptocurrency exchanges are another option. Exchanges make money by charging transaction fees, but there are alternative platforms where you may communicate directly with other cryptocurrency traders.

How Safe Are Cryptocurrencies?

Cryptocurrencies can be safe, but your crypto wallets can be hacked if proper security steps are not performed.There are also dangers and uncertainties associated with investments, and we cannot declare any virtual currency investment risk-free. Buying and selling cryptocurrencies does not have to be dangerous if the trader is well-versed in the market and treats his coins with care.

Is Bitcoin And Cryptocurrency The Same Thing?

Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.

Are Cryptocurrencies A Good Investment?

Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.

Who Invented Cryptocurrency?

Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person's identity remains unknown.

Are Cryptocurrencies Legal In India?

In India, cryptocurrency is legal, and anyone can buy, sell, and trade it. Because India lacks a regulatory system to regulate its operations, it is presently uncontrolled. According to the Ministry of Corporate Affairs, companies must now document their crypto trading/investments inside the financial year.

Is Pi Cryptocurrency Safe?

Pi Network (PI) is the newest digital token to catch the cryptocurrency community's interest, even before it has wholly debuted. Some users see it as a chance to get engaged in a cryptocurrency from the beginning and profit in the future, similar to how early Bitcoin adopters made huge profits by mining and keeping the coin. Other users have compared Pi to a worthless multi-level marketing (MLM) scheme.

What Is Virtual Currency?

Virtual currency is a type of uncontrolled digital currency that can only be used online. It is exclusively stored and transacted using designated software, mobile or computer applications, or unique digital wallets, and all transactions are conducted through secure, dedicated networks. Because digital currency is just currency issued by a bank in digital form, virtual currency is not the same as a digital currency. Virtual currency, unlike ordinary money, is based on a trust structure and cannot be issued by a central bank or other banking regulatory organization.

What Is The Meaning Of Crypto?

A cryptocurrency is a digital currency that is secured by the process of cryptography, making counterfeiting and double-spending almost impossible to happen. Blockchain technology is used to produce cryptocurrencies ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a centralized authority does not issue them.

Which Cryptocurrency Is Best To Invest Now?

Litecoin has an 84 million coin limit and a 12.5 LTC block reward, which is more than other cryptos. Miners will find that mining Litecoin is faster than mining any other cryptocurrency because the average time to mine a Litecoin is under two minutes. Because of its increasing popularity, Litecoin is the best of all the altcoins. At WazirX, the current price of Litecoin is ₹12,410.22.

Which Cryptocurrency Is Best To Invest In 2021?

Many altcoins are flourishing to invest in. Some cryptocurrencies with great potential are Ether, Ripple, Tron, and more. Investors are trying to diversify their portfolios and are flocking to the leading cryptocurrencies. Many growing businesses are already accepting cryptocurrency as acceptable payment methods.

Is Cryptocurrency Banned In India?

No, cryptocurrency is not banned in India. India has seen its ups and downs in the crypto sector concerning its legal status. The Reserve Bank of India (RBI) issued a circular in April 2018 advising all organizations under its jurisdiction not to trade in virtual currencies or provide services to assist anyone in dealing with or settling them. A government committee proposed outlawing all private cryptocurrencies in mid-2019, with up to ten years in prison and severe penalties for anyone dealing in digital currency. The Supreme Court overruled the RBI's circular in March 2020, allowing banks to undertake cryptocurrency transactions from dealers and exchanges.

What Is Crypto?

Crypto or a cryptocurrency is a digital currency protected by cryptography, making counterfeiting and double-spending nearly impossible. Blockchain technology is used to produce cryptocurrencies (a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are distinct in that a government does not issue them. The word "cryptocurrency" refers to the encryption methods employed to keep digital currencies and the network secure.

Is Crypto Legal In India?

Cryptocurrencies are legal in India, and anyone can purchase, sell, and exchange them. It is currently uncontrolled, as India lacks a regulatory structure to oversee its operations. Per the Ministry of Corporate Affairs, companies must now record their crypto trading/investments within the financial year. In cases where a person receiving the gains is an Indian tax resident, or the cryptocurrency is regarded as domiciled in India, cryptocurrency transactions have been taxable in India

How Many Cryptocurrencies Are There?

There are over 5000 other digital currencies available on the internet in addition to Bitcoins. The only problem is that they haven't gotten the users' attention. Besides Bitcoins, a few other digital currencies have gained popularity among users. It's been more than ten years since Bitcoins were first released, and now they've achieved new heights thanks to their phenomenal success.

How To Invest In Cryptocurrency In India?

There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is the process of verifying and adding transactions between users to the blockchain public ledger. Purchasing cryptocurrency in India is a straightforward procedure where investors simply participate by registering with a crypto exchange such as WazirX. After registering for an account, citizens can trade multiple cryptocurrencies, store cryptocurrency in wallets, and more.

How Cryptocurrency Works?

Cryptocurrencies use cryptography technology to keep transactions and their units (tokens) secure. Cryptocurrency works via a technology called the blockchain. A blockchain is a decentralized technology that handles and records transactions across numerous computers. The security of this technology is part of its value.

How To Invest In Cryptocurrency?

There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is considered the procedure of verifying and adding transactions to the blockchain public ledger. Another option is via cryptocurrency exchanges. Exchanges generate money by collecting transaction fees, but there are alternative websites where you can interact directly with other users who want to trade cryptocurrencies.

Is Cryptocurrency Legal In India?

In India, cryptocurrencies are legal; anyone can purchase, sell, and trade cryptocurrencies. They are currently unregulated; India does not have a regulatory framework in place to regulate its functioning. According to the Ministry of Corporate Affairs (MCA), companies must now declare their crypto trading/investments during the financial year, according to the Ministry of Corporate Affairs (MCA). Cryptocurrency transactions have been taxable in India when people receiving such gains are Indian tax residents or where the crypto is considered to be domiciled in India

What Is Cryptocurrency?

A cryptocurrency is a digital currency secured by encryption, due to which chances of activities such as counterfeiting and double-spending taking place get close to impossible. Cryptocurrencies get created on blockchain technology ( a distributed ledger enforced by a distributed network of computers). Cryptocurrencies are unique in that they do not get issued by any central authority. The term "cryptocurrency" comes from the encryption techniques used to keep digital currencies and the network safe.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
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