xrp
How does Ripple work?
Unlike Bitcoin or Ethereum, Ripple does not refer to a blockchain network with a native cryptocurrency asset. In fact, Ripple, the company, has a history of reframing how XRP fits into its business model, first embracing it as the fuel that powers its cross-border payments technology, then setting it to the side as it focused on xCurrent, xRapid and xVia – still other payment networks for cheaper and faster international payments.
Related: Coinbase to Support Spark Token Airdrop to XRP Holders
In late 2019, xCurrent, xRapid and xVia were rebranded to RippleNet, a payment network focussed on quick, cross-border transfers between financial institutions.
In addition to RippleNet, Ripple also oversees the XRP Ledger, a blockchain-like network that facilitates payments in XRP, the digital currency issued by Ripple. Like other cryptocurrencies, XRP can be sent to and from a digital wallet irrespective of international borders. When it was launched in 2012, Ripple marketed XRP as a faster, cheaper alternative to bitcoin because transactions settle in seconds; XRP’s network can achieve this speed because its infrastructure is centralized and it does not utilize proof of work, the consensus algorithm used by Bitcoin to process transactions.
How does Ripple work?
Unlike Bitcoin or Ethereum, Ripple does not refer to a blockchain network with a native cryptocurrency asset. In fact, Ripple, the company, has a history of reframing how XRP fits into its business model, first embracing it as the fuel that powers its cross-border payments technology, then setting it to the side as it focused on xCurrent, xRapid and xVia – still other payment networks for cheaper and faster international payments.
Related: Coinbase to Support Spark Token Airdrop to XRP Holders
In late 2019, xCurrent, xRapid and xVia were rebranded to RippleNet, a payment network focussed on quick, cross-border transfers between financial institutions.
In addition to RippleNet, Ripple also oversees the XRP Ledger, a blockchain-like network that facilitates payments in XRP, the digital currency issued by Ripple. Like other cryptocurrencies, XRP can be sent to and from a digital wallet irrespective of international borders. When it was launched in 2012, Ripple marketed XRP as a faster, cheaper alternative to bitcoin because transactions settle in seconds; XRP’s network can achieve this speed because its infrastructure is centralized and it does not utilize proof of work, the consensus algorithm used by Bitcoin to process transactions.