On this page, we discuss some interesting facts about Ripple, why it’s a useful cryptocurrency, and what experts think of it.
We also explore how Ripple is mined and how it compares to Bitcoin as an in-use cryptocurrency.
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Ripple and the Ripple network have the potential to completely change the way that we approach currency transfers.
Big banks and small-time traders have all begun to take notice and Ripple is one of the most successful Altcoins.
What is Ripple & How Does It Work?
Ripple is the name for both the digital currency XRP and the open payment network within which the currency is transferred.
Ripple was founded in 2012. It was designed to complement rather than compete with cryptocurrencies and fiat currencies.
Interested in trading Ripple? Head over to our Ripple Trading Guide to find out where you can buy or trade it.
The cryptocurrency’s goal is to enable secure, instant, and cheap global financial transactions.
It is used by many banks as the basis of their own settlement infrastructure. The currency itself, XRP, has consistently been one of the five largest cryptocurrencies by market cap.
How Is Ripple Designed?
Ripple is designed to work with the Ripple Network (RTXP).
The Ripple network allows real-world assets to be transferred between two parties using a process called an issuance.
For example, a bank may want to transfer a real-world asset, like gold or silver, to another institution. To do this the bank adds the gold to the Ripple network and then transfers the asset to a “trusted party” who can reclaim the goods.
This allows the trade to happen without any transaction fees.
How Are Ripple Transactions Processed?
A small amount of XRP is taken during each transaction. This isn’t to compensate traders. Instead, the Ripples are irrevocably destroyed. This prevents users from spamming the network with requests.
Put simply, Bitcoin and Ethereum are more like bank accounts. Users can trade them in exchange for goods and services.
Ripples are designed to be a passageway for transactions to take place and as a bridge between other currencies. It was never really intended to be a stand-alone currency like Bitcoin and Ethereum.
If Ripple Isn’t Mined, How Was It Made?
Unlike the majority of other cryptocurrencies, XRP is not “mined” or made.
Instead, all Ripples were generated during the genesis event. XRP is not designed to be traded in the same way as Bitcoin or other cryptocurrencies.
Instead, Ripple acts as a way to protect the system from incentive-based, non-functional spam, and to help convert real-world assets into digital issuances.
Useful Ripple Facts You Might Not Know
Before you find out about what Ripple is and how it works, here are some notable facts about the coin’s history and adoption.
- The Bank of England conducted a proof of concept test with Ripple, integrating the company’s blockchain technology for simulated cross-border payment.
- Work on the Ripple payment protocol first started in 2004 (5 years before Bitcoin was released) under the project name “Ripplepay”.
- A Ripple transaction can involve non-Ripple assets, any currency, cryptocurrency, or other digital assets like airline miles.
- American Express and Santander have partnered with Ripple for cross-border payments between the U.S. and the U.K. by using blockchain technology.
- Ripple Labs were involved in a lawsuit with rival platform developers R3.
Ripple vs Bitcoin: Similarities And Differences
How does Ripple compare to Bitcoin? What are the key differences?
See below for our head-to-head comparison:
| Ripple (XRP) | Bitcoin (BTC) | |
|---|---|---|
| Purpose | Centralized enterprise blockchain solution for banks, payment providers and digital asset exchanges | Decentralized digital currency |
| Founded | 2012 | 2009 |
| Founder | Ryan Fugger | Satoshi Nakamoto (alias) |
| Market Cap | Over $20 billion | Over $300 billion |
| All time High | $1.35 (December 2017) | $19,850 (November 2020) |
| All Time Low | $0.0002 July 2014 | $0.06 (July 2010) |
| How long did it take to hit $100? | Ripple has yet to reach $100 | 51 months |
| Notable Supporters | Major financial institutions and corporations | Jeff Currie (Goldman Sachs) Peter Theil (Venture capitalist) Christine Lagarde (IMF) Marc Andreessen (Early internet Pioneer) |
| Supply Cap | 100,000,000,000 | 21,000,000 |
| Initial Distribution | All XRP was instamined | Mining |
| Mining Method | Ripple is not mined | ASIC |
| Consensus Method | Proof-of-Correctness | Proof-of-Work |
| Network Hash Rate | N/a | Up to 100 Qh/s |
| Difficulty increase | N/a | Every 2,016 Blocks |
Data last reviewed: Warning: data published 5 years ago. Verify before relying on it.
On some points, Ripple cannot be compared to Bitcoin, since it is not mined.
What Do Experts Say About Future Ripple Prices?
The value of Ripple-to-USD has been relatively stable compated to a more volatile XRP-BTC price over the years. This makes sense as Ripple is designed as a bridging currency.
Unlike Bitcoin, Ripple is less prone to huge speculation-driven price swings.
Institutional Partnerships Bring A Positive Outlook
The long-term outlook for Ripple is good. While experts fret about looming regulation it is unlikely Ripple will be adversely affected. The unique utility of RTXP means that it may find allies with traditional financial institutions.
Ripple will also do well as speculation begins to subside.
There are close to 8,000 listed cryptocurrencies on CoinMarketCap.com — many of these coins, primarily the non-functional ones may fade in time. Ripple doesn’t seem to be one of them.
Currencies with strong utility will become more valuable. Peter Smith, CEO of Blockchain, has argued that there will be a big need for “cross-border transactions”.
This is an area that Ripple already excels in. The future might be rocky for cryptocurrencies but Ripple is poised to do well.
What Does TechCrunch’s Founder Say About Ripple?
Techcrunch founder, Michael Arrington announced a crypto hedge fund in November that will be denominated in the Ripple (XRP).
“We are launching a $100 million crypto hedge fund. The fund is denominated in XRP. It’s actually a pretty perfect platform for a hedge fund if you want to be denominated in a cryptocurrency I think XRP is perfect for that.”
Michael Arrington, TechCrunch Founder
What Does Ripple’s SEC Lawsuit Mean For The Future Of Ripple?
Just before Christmas in 2021, the departing SEC chairman Jay Clayton decided to sue Ripple over early sales of XRP as unregistered securities.
This attack on Ripple hit the cryptocurrency headlines strong, leaving many advocates question the future of Ripple. The coin’s price experienced a sharp drop to under $0.19 for the first time since April 2020.
That said, the future outlook for Ripple is not as daunting as worried sellers may make it seem.
The new SEC chairman Elad Roisman is known as ‘pro-cryptocurrency’, and following Elon Musks’ taunting of the SEC, Ripple has an opportunity to defend its ground with concise communication.
Where Can I Find Ripple?
See our full guide to buying and trading Ripple, or start your research with reviews of these crypto exchange and trading platforms available in .
| Crypto Exchange | Description |
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| eToro | Real crypto and derivatives. (availability subject to regulation.) 👜 🔹 Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more |
| Kraken | Crypto exchange with 150+ trade pairs including spot and derivatives trading. 🔹 |
| Coinbase | Buy, sell, and manage your cryptocurrency portfolio 👜 |
| Crypto.com | Crypto exchange with earnings and crypto-cash visa cards. 🔹 |
| 👜 = Built-in cryptocurrency wallet 🔹 = Demo available |
Data last reviewed:
Please Note: Availability subject to regulations. Cryptocurrency CFDs are not available to UK retail traders.
Further Reading
If you like to learn more about cryptocurrencies and prepare for trading them, you can:
- Learn how to avoid crypto scams with our guide.
- Learn about technical analysis indicators, concepts, and patterns applicable to crypto trading
- Find out how and where to trade Ripple
- See whether CFDs or options appeal to you as a way of speculating on cryptocurrency prices
- See if Dash, a privacy-centered cryptocurrency is a better altcoin for you to consider trading
We also have guides on some other top cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
Update history
This page was revised 13 times between August 2020 and December 2021.
Restructured content hierarchy by demoting two section headings from H2 to H3, updated exchange table references, and clarified language from "trading" to "buying and trading."
Rewrote introduction in "Where Can I Find Ripple?" for clarity, adjusted heading hierarchy, and updated exchange table references.
Rewrote introductory sentence for clarity and added geo-targeted exchange table excluding US users.
Rewrote heading and clarified descriptions to distinguish between crypto exchanges and trading platforms, updated reference table.
Reworded section heading from "Where Can I Trade Ripple?" to "Where Can I Find Ripple?" and updated broker reference to clarify "crypto exchange and trading platforms," plus replaced comparison table.
Added a new "quick start" section with broker recommendations for users in specific countries.
Added broker recommendation section with country-specific trading options for Ripple.
Added new section explaining the SEC lawsuit against Ripple and its potential impact on the cryptocurrency's future.
Added new "Where Can I Trade Ripple?" section with broker comparison table and regulatory disclaimers for country-specific trading.
Restructured content with new introductory section, reorganized price outlook and expert commentary into separate sections, added trading guide link and further reading resources, and corrected spelling error ("compated" to "compared").
Added new content including founding details, technical explanations of Ripple's design, price outlook analysis, expert commentary, and removed outdated price-driving factors section.
Added article structure with new sections covering Ripple's technology, price drivers, investment reasons, and broker comparisons, plus an XRP vs. Bitcoin comparison table.
Added introductory paragraphs, expanded "What is Ripple?" section with five key facts and detailed explanations of network functionality, and introduced price drivers section covering media influence.
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