What is XRP?

XRP is the native digital asset of the XRP Ledger, claiming to be a "fast and environmentally friendly" cryptocurrency, designed to be highly practical for use in the financial services sector. It facilitates rapid transaction settlements, can process thousands of transactions per second, and relies on a network of hundreds of approved validators, differentiating it from more open blockchains like Bitcoin (BTC) that allow anyone to contribute and validate transactions.

Upon its creation, all 100 billion XRP tokens were distributed, with portions allocated to its creators, and the rest dispersed through gifts and giveaways. A significant percentage of XRP's supply remains in escrow.

Who created XRP?

XRP was conceived by a group of individuals with significant impact in the crypto space. The creators often credited include Jed McCaleb, founder of Mt. Gox, Arthur Britto, and Chris Larsen. These three individuals co-founded OpenCoin, a fintech firm that later rebranded to Ripple.

Other notable contributors include Stefan Thomas, a Bitcoin Core contributor and former Ripple CTO, and David Schwartz, co-author of the Ripple white paper alongside Arthur Britto. Ripple, one of the main players in the XRP Ledger ecosystem, is closely associated with the cryptocurrency and plays a crucial role in its development and expansion.

What is Ripple’s relationship with XRP?

Ripple, initially established in 2012 as OpenCoin, rebranded to Ripple Labs in 2013, and finally settled as Ripple in 2015. The company's connection with XRP is primarily oriented towards developing technology to increase the utility of XRP and enhance global payments.

Ripple actively promotes and utilizes the XRP token through its RippleNet product, purporting to offer connections to financial institutions worldwide, making the movement of money "faster, cheaper, and more reliable."

RippleNet employs XRP to provide liquidity for cross-border transactions, thus eliminating the need to pre-fund accounts. Renowned financial entities such as Santander, Bank of America, SBI Remit, and Banco Rendimento utilize this system.