What is Ripple（XRP）? One of the First Cryptocurrencies is Still in the Top Ranks

2022-05-26, 15:37

What is Ripple (XRP)? Ripple is a decentralized edge-to-edge blockchain protocol that provides a digital payment structure for financial institutions. It offers a peer-to-peer transfer of assets - whether fiat or digital like bitcoin - without requiring a central agency to supervise and approve the transfers.

What is XRP for? TXRP token signifies the value being transferred in the RippleNet protocol, acting as an exchange mediator and of course an active digital asset for storage and trading.

When was Ripple created? The Ripple crypto was created in early 2012 by co-founders Jed McCaleb and Chris Larsen, the first crypto to seek a middle ground between decentralization and centralization. It was initially called OpenCoin until Jed left the project, thus renaming it to RippleLabs and its crypto Ripple.

How does Ripple work? Ripple became the world's first in crypto in utilizing a consensus mechanism for its network that did not require any mining or staking. To process and verify transactions, RippleLabs created the Ripple Protocol Consensus Algorithm, or RPCA. In order for transactions to be processed, every single node in the network must agree to the verifications. It’s the main reason why Ripple is much faster and cheaper than bitcoin, with an average processing time of 5 seconds.

How to buy XRP: Once you have created a Gate.io account, head over to the Trade section and select Spot Trading. You will be directed to Gate.io’s main trading hub. From the top-left corner, search Ripple or XRP to see what pairs are available to trade from.

How to store XRP: When assets are purchased in Gate.io, they are immediately provided with state-of-the-art custody which can be accessed through the Wallet menu on the top-right corner. Just head to Funds Overview and select the chosen account that you’d like to view your assets on.

How to stake XRP: Gate.io offers staking options to thousands of cryptocurrencies, and that includes staking XRP. To stake Ripple, head to the Finance menu on the top toolbar, then click HODL & Earn. From there, click on the Flexible Term category to see what Ripple staking options are currently available.

With the exception of bitcoin, no other cryptocurrency has stayed in the top 10 crypto rank for longer than Ripple. A project filled with firsts, innovations and even controversies, Ripple was conceived back in 2012 - way before most top cryptocurrencies available today and even three years prior to Ethereum itself.

But what is Ripple exactly, and how does it work? In this article, we explore the infamous Ripple (XRP) crypto and what it seeks to accomplish through centralized partnerships, its technology and the XRP token.

What is Ripple (XRP)?

Ripple’s current logo, after going through many different versions throughout the years.
Source: Cryptee

Ripple is a decentralized edge-to-edge blockchain protocol that provides a digital payment structure for financial institutions. It offers a peer-to-peer transfer of assets - whether fiat or digital like bitcoin - without requiring a central agency to supervise and approve the transfers.

A Layer-1 blockchain, meaning an original protocol not based on others, the network uses its token XRP as a central store of value and trading mechanism. When it comes to market cap, Ripple’s XRP is currently at number 6 with a market cap of 29 billion dollars. It has often held positions between #2 and #9, and has never left the top 10 since its conception. What’s remarkable about Ripple is that all tokens are pre-extracted, meaning there are no longer any left to be mined - with a total supply of 100 billion XRPs.

Ripple’s main functioning protocol is RippleNet, an open-sourced platform projected to allow fast, cheap and permissionless transactions. Where institutions and companies using Ripple are concerned, their name is RippleNet - it’s the driving face of the project for mainstream adoption. Through RippleNet, the XRP token signifies the value being transferred, acting as an exchange mediator and of course an active digital asset for storage and trading.

When was Ripple created?

Co-founders Jed MacCaleb (left) and Chris Larsen (right). Source: Most Traded

The Ripple crypto was created in early 2012 by co-founders Jed McCaleb and Chris Larsen, the first crypto to seek a middle ground between decentralization and centralization, by attempting to create a more efficient and cheaper payments system instead of changing banking itself as a whole. Its main goal has always been to provide a protocol for trade and storage of easy liquidation assets that functions as the current SWIFT or PIX protocols available worldwide. It offers a similar solution for international transfers of large sums, through RippleNet.

Initially, Ripple was a regular, centralized company like any other before the crypto market came to fruition. Founded in 2004, it also sought more efficient ways to conduct and receive transactions. It also went by the name OpenCoin at the time. It was only in 2011 that founders, in partnership with cryptography specialists David Schawart and Arthur Britto, decided to create a cryptocurrency after witnessing bitcoin’s major success in the brand-new blockchain technology. Founding their crypto project as OpenCoin in 2012, Jed McCaleb left the project to pursue other endeavours. After his leaving, OpenCoin and its company were officially renamed Ripple and RippleLabs.

How does Ripple work?

Contrary to traditional blockchains like bitcoin and Ethereum, Ripple became the world's first in crypto in utilizing a consensus mechanism for its network that did not require any mining. The XRP tokens are not mined and are also not part of Proof of Work nor Proof of Stake consensus. To process and verify transactions, RippleLabs created and patented a proprietary technology called the Ripple Protocol Consensus Algorithm, or RPCA. RPCA states that, in order for transactions to be processed, every single node in the network must agree to the verifications.

RPCA is the main reason why XRP transactions are much cheaper, faster and use less energy than bitcoin. While other crypto projects managed to catch up to Ripple’s main selling points, Ripple still is to this day one of the most innovative crypto projects ever in creating a much faster protocol for digital assets. Its average transaction processing time is 5 seconds. However, keep in mind that Ripple is a centralized company, and that takes a lot of the burden of crypto assets away from the equation. Nonetheless, its safe to say that it was years ahead from its inception.

To ensure that all transactions are conducted exactly as intended, Ripple uses a bridge called Gateway, linking the sender and receiver in a decentralized manner. These transactions are available in public addresses and stored on the RippleNet. Companies, institutions and individuals can sign up and create their own gateway to process transactions related to their businesses.

How to buy XRP

Ripple’s native token XRP can be purchased at Gate.io multi-services platform through several ways; from a cash deposit, crypto deposit, credit card and P2P trade.

Once you have created a Gate.io account, head over to the Trade section and select Spot Trading. You will be directed to Gate.io’s main trading hub. From the top-left corner, search Ripple or XRP to see what pairs are available to trade from - the most popular one being XRP/USDT.

If your account already has the proper funds to pair with the trade, you are ready to execute your order!

How to store XRP

When assets are purchased in Gate.io, they are immediately provided with state-of-the-art custody which can be accessed through the Wallet menu on the top-right corner. Just head to Funds Overview and select the chosen account that you’d like to view your assets on.

How to stake XRP

Gate.io offers staking options to thousands of cryptocurrencies, and that includes staking XRP. To stake Ripple, head to the Finance menu on the top toolbar, then click HODL & Earn. From there, click on the Flexible Term category to see what Ripple staking options are currently available - with new opportunities potentially added at any time. The same format applies to any other asset available on the platform. Browse around and see what investment options interest you!

Author: Gate.io Researcher: Victor Bastos
* This article represents only the views of the researcher and does not constitute any investment suggestions.
*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.

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