XRP is one of the most popular cryptocurrencies out there. Even though, a lot of investors know the difference between Ripple and XRP, there are still some people out there who think they are the same thing (which they definitely are NOT). So with this, today we’re going to go through the what you are investing in when you decide to go with Ripple.
To start with, we’re going to go through the native currency of Ripple which is XRP which is sometimes referred to as Ripple due to its association with its parent company.
Currently, Ripple Labs is fighting against a number of class action lawsuits which claim the sale of the XRP token was promoted as security. The firm has denied the allegations and requested late last year that the David Oconer against Ripple Labs to be heard in Federal Court.
As a response to the common mistake and confusion, “XRP is the digital asset native to XRP Ledger. The XRP Ledger is an open-source, distributed ledger. Ripple is a privately held company.”
The XRP ledger is primarily used to record the ownership and transfer of the XRP digital token.
The token has fast settlement times in which Ripple claims that it achieves finality in around four seconds and can handle “1,500 TPS – a throughput on par with Visa and other card networks. This is because XRP was created specifically for enterprise use to provide liquidity for international transactions.”
Ripple as a company
The privately held company holds the minds behind the creation, deployment and development of assets and services such as XRP and RippleNet.
Two of the minds behind Ripple and its products is Jed McCaleb and Ryan Fugger. Eight years ago, McCaleb began working on a cryptocurrency which could get to consensus without the need for mining. As reported by Brave New Coin, since 2004, Fugger had been working on a monetary system which would be decentralised in nature and would facilitate the creation of a value system specific to a community. In 2012, McCaleb was working with the well-known financial technology investor and disrupter Chris Larsen which engaged Fugger with the idea of putting their ideas together to fill a hole in the market.
McCaleb and Larsen were later given full leadership by Fugger in the end with the private firm, OpenCoin being their next venture.
What are your thoughts? Let us know what you think down below in the comments!