While most of the news headlines around crypto tend to focus on the original cryptocurrency, Bitcoin, however, the sector is also home to a plethora of other digital tokens, each operating on their own networks and offering different benefits and capabilities. One of these is Ripple and its related cryptocurrency, XRP, which so far this year had soared in value alongside its crypto brethren and is up around 648% on its value on January 1 at around US.72.
What are Ripple and XRP?
Ripple is the name of the network and the company behind it, while XRP is the token that is used to run transactions on the system. The system works by converting the currency of the sender into XRP and then sending it to the recipient who can then convert the XRP into a different fiat currency. The system is already used by major banks and institutions to process international payments. The term Ripple is sometimes used to refer to both the network and the crypto, however, XRP is the official name of the token and how it is displayed in trading. The key differences between the Ripple network and the Bitcoin network are their frameworks and the relative strengths and weaknesses these provide.
What is the difference between Ripple and Bitcoin?
Aside from trading XRP on the crypto markets, Ripple is better known by many as a payment settlement system for international transfers and remittances, similar to more established systems such as SWIFT.
Bitcoin is based on the blockchain framework, which functions as a