What Is Ripple & How XRP Works: Full Review Of 2023 For Crypto Traders

What Is Ripple Coin (XRP) & How It Works Full Review Of 2023

A money transfer network called Ripple was created to meet the demands of the financial services sector. The native cryptocurrency of the Ripple network is called XRP, and according to market capitalization, it frequently ranks in the top ten. Because of its fantastic utility, XRP and the blockchain on which it operates, the XRP Ledger (XRPL), are used by businesses, institutions, developers, and people worldwide. In this topic, we will bring you answer what is Ripple and XRP to help you get an overview of them.

What is Ripple Ledger (XRP)?

What is Ripple (XRP)

Ripple is a network for real-time gross settlement, currency exchange, and remittances developed by the US-based technology company Ripple Labs Inc. The 2012-released Ripple platform enables tokens representing fiat currency, cryptocurrencies, commodities, or other value types like frequent flier miles or mobile minutes. It is based on a distributed open-source protocol. With no chargebacks, Ripple claims to offer “secure, fast, and almost free worldwide financial transactions of any size.”

Background of Ripple Company

Jed McCaleb came up with the idea for Ripple, which Arthur Britto and David Schwartz created. Ryan Fugger, a financial service that had made its debut in 2005, approached them. Their goal was to use a global network to offer secure payment choices to members of an online community. OpenCoin, a system created by Fugger, would eventually become Ripple. To enable financial institutions to transfer money with minimal wait times and fees, the business has developed its cryptocurrency, XRP. The company announced in 2013 that banks were interested in implementing its payment system.

Global financial institutions, companies, governments, and developers may move, manage, and tokenize money with the help of Ripple’s blockchain technology, opening up more global economic opportunities.

How Does Ripple Work?

With its cryptocurrency, XRP, Ripple is a blockchain-based digital payment network and protocol.

Ripple employs a consensus mechanism using a collection of servers owned by banks to confirm transactions rather than mining on a blockchain.

The Ripple network doesn’t operate on a proof-of-work (PoW) or proof-of-stake (PoS) mechanism like Bitcoin or other blockchain. Instead, to verify account balances and transactions on the system, transactions rely on a consensus. The consensus seeks to increase the system’s integrity by prohibiting double-spending.

If a Ripple user tries to send the same $100 to multiple gateway systems, only the first transaction will go through. Individual nodes on the network will reach a consensus on which transaction was made first, and confirmations are instant. Since no central authority decides who can run a node and confirm transactions, the Ripple platform is described as decentralized.

Ripple enables users and gateways to keep track of all IOUs in a given currency. IOU credits and transaction flows between Ripple wallets are publicly available on the Ripple consensus ledger. Even though financial transaction history is publicly recorded and made available on a blockchain, the data is not linked to the ID or account of any individual or business. However, the public record of all dealings (i.e., the blockchain) makes the information susceptible to de-anonymization measures.

Read more: Comparison of Two Blockchain Consensus Algorithms: PoW Vs PoS: Which Is Better For You 2023

What Problems Does Ripple Solve?

Members of the network can process payments such as bank transfers, credit cards with real-time settlement and increase payment efficiency and certainty thanks to Ripple’s XRP-powered solution. It is possible to conduct international payments like wire transfer and credit cards with less money in nostro accounts by using XRP as a source of liquidity on demand.

Solutions offered by Ripple are quicker, more transparent, and more economical, eliminating inefficiencies that have long characterized the current quo. Together with their collaborators and the broader developer community, they also pinpoint application cases where cryptocurrency technology can spur the development of fresh company strategies and open up new employment opportunities.

The Ripple Team

Ripple is proud to have a team of experienced leaders across the executive team and board of directors.

The leadership of Ripple Team includes:

  • Brad Garlinghouse – Chief Executive Officer: Brad is the Ripple CEO and former CEO of Hightail, a file collaboration service. He was President of Consumer Applications at AOL from 2009 to 2012, and held various positions at Yahoo! from 2003 to 2009, including Senior Vice President. Brad has also served as CEO of Dialpad Communications and held management positions at SBC Communications and @Home Network. He is currently an advisor to Silverlake Partners and a board member of Animoto and OutMatch.
  • David Schwartz – Chief Technology Officer: Ripple’s Chief Technology Officer and one of the founding members of the XRP Ledger, has a long and distinguished history in the tech industry. Before joining Ripple, David served as the Chief Technical Officer for WebMaster Incorporated. He is a well-known and respected figure in the digital currency world and is commonly known by the pseudonym “JoelKatz.”
  • Kristina Campbell – Chief Financial Officer: At Ripple, Kristina Campbell serves as the Chief Financial Officer. With an emphasis on fintech and payments, she has over 20 years of expertise in finance operations and business development. When Kristina Campbell was PayNearMe’s CFO, the company and its team experienced significant growth. She also held several positions at GreenDot, a fintech startup now valued at $2.5 billion and publicly traded, including General Manager of GoBank. Before this, Kristina worked as an investment banker for Citigroup and a Manager at the management consulting firm Bain & Company.

Ripple - Leadership

The Board of Directors of Ripple Team includes:

  • Chris Larsen – Executive Chairman: Chris Larsen, the Executive Chairman, leads Ripple’s board of directors. He helped start Ripple and was its CEO at one time. Before starting Ripple, Chris co-founded and was CEO of the online lending marketplace Prosper and the publicly traded online lender E-LOAN. During his time at E-LOAN, he started the open access to credit scores movement by making E-LOAN the first company to show customers their FICO scores.
  • Susan Athey – Board Member: Professor of Economics Susan Athey works at the Stanford Graduate School of Business. She got her Ph.D. from Stanford, and Duke University gave her an honorary doctorate. She used to teach in the economics departments at MIT, Stanford, and Harvard. In 2012, she was chosen for the National Academy of Science, and in 2008, she was selected for the American Academy of Arts and Sciences. Professor Athey’s current research is mainly about the economics of the internet, internet search, online advertising and the news media, and virtual currencies. She advises governments and businesses on how to design auction-based markets. Since 2007, she has been a long-term consultant to Microsoft Corporation in several roles, including chief economist.


According to Ripple network partners, it has partnered with more than 300 financial institutions to provide low-cost, real-time cross-border payments.

Ripple provides a international network of financial institutions and payment providers that help companies accelerate their business.

Some Ripple customer case studies.

  • Santander and Ripple are revolutionizing cross-border payments, making them faster and cheaper for millions of retail and commercial customers.
  • MoneyMatch and Ripple are making it cheaper and faster for Malaysian SMEs to pay global suppliers.
  • CROSS ENF has partnered with Ripple to launch South Korea’s first blockchain-based real-time global payments service.
  • TransferGo provides quick, affordable global payments with the assistance of Ripple.
  • Xendpay is opening up new remittance markets with Ripple to improve speed and stay ahead of the competition.

What Is XRP Token?

What Is XRP Token

With significant cost savings, the cryptocurrency token XRP was created to move transactions away from closed infrastructure and financial institution-controlled central databases. Cross-border transactions benefit from the trustless, quick, and affordable nature of XRP transactions.

Basic Information About XRP

  • Ticker: XRP
  • Blockchain: XRP Ledger
  • Consensus: XRP Ledger Consensus Protocol
  • Token Type: Utility Token
  • Contract: 0x1D2F0da169ceB9fC7B3144628dB156f3F6c60dBE
  • Avg. Block time: 4 seconds
  • Avg. Transaction Time: 1,500+ TPS
  • Smallest Unit: 1 XRP
  • Max Supply: 100,000,000,000 XRP
  • Total Supply: 99,989,361,309 XRP
  • Circulating Supply: 49.38B XRP

Token Allocation

In January 2013, 100 billion XRP were pre-mined and distributed as follows:

  • The creators of XRP held onto 20%. Jed McCaleb and Chris Larsen both received 9.5 billion XRP. A billion token was given to Arthur Britto.
  • Ripple received 77.8% of the budget.
  • As part of the launch, 0.2% was airdropped as a test to see if utilization could be increased.

Chris Larsen donated 7 billion tokens XRP from his allotment to a charitable organization in 2014. McCaleb gave a donor-advised fund $2 billion of his budget. The project’s leftover funds were to be held in a custodial account and assigned to McCaleb on a monthly timetable, according to the separation agreement he negotiated in 2014. The deal includes a daily cap on how many of the released coins he may sell. Currently, McCaleb, a co-founder of Ripple, is only permitted to sell his holdings at a theoretical maximum rate of 1% of the daily trading volume.

With a maximum total supply of 100 billion tokens, Ripple Labs holds 80%, and the remaining 20% will go to the founders.

XRP Token Allocation

Token Sale

McCaleb, Britto, and Schwartz worked on the XRP Ledger from late 2011 to early 2012. In September 2012, Jed, Arthur, and Chris Larsen founded Ripple (the business was then known as OpenCoin Inc.). They decided to give Ripple 80 billion XRP in exchange for Ripple developing on the XRP Ledger.

Since then, the business has routinely traded XRP, used it to support XRP markets, increase network liquidity, and provided incentives for the growth of a larger ecosystem. The company put 55 billion XRP in escrow in 2017 to ensure that the amount entering the general supply rises reliably for the foreseeable future. How much XRP is currently available and locked in escrow is disclosed on Ripple’s XRP Market Performance website.

Price of XRP Today

XRP has a value of slightly over $0.37 as of July 20, one month into the S&P 500 bear market, according to CoinMarketCap. Since the start of the year, it has followed other cryptocurrencies’ downward trend. XRP is down 71% from its one-year high of $1.39 and has lost more than 33% of its value over the previous year.

  • The current XRP price is $0.37, which is lower than its all-time high of $3.84 in January 2018 and closer to its launch price of $0.10. Early January 2021, XRP experienced a price increase and reached above $1, according to Coinbase data. It had fallen to around $0.70 by April 2023 and had continued to decline throughout spring
  • Market cap: $16,790,150,913
  • 24H volume: $1,333,026,704

What is XRP Used For?

For XRP, there are currently 3 prominent use cases:

  • Cross-Border Payments (Enable global money transfers): Expand your business by reaching more customers and speeding up your payments.Get your payments delivered in real-time, without tying up capital in destination markets.Ripple’s technology and global network provide faster, more reliable, and affordable remittances, SME payments, disbursements, and treasury flows for organizations and their customers.
  • Crypto Liquidity (Source digital assets): Ripple Liquidity Hub will make it easy for financial institutions and businesses to source electronic assets from global crypto markets.The platform enables organizations to offer customers the ability to buy, sell, and hold crypto assets, unlocking new revenue streams.
  • Central Bank Digital Currency (Implement CBDCs): Ripple provides a comprehensive platform for creating, managing, and transacting CBDCs. Each solution is built on a private ledger that is based on XRP Ledger technology—a blockchain that has transacted over 70 million times over the course of 10 years and is trusted by financial institutions around the world.

How to Buy XRP Crypto?

How to buy XRP Tokens

Pick a cryptocurrency exchange

Every cryptocurrency network has a unique method of operating. Check what money you’ll need to utilize to buy XRP before proceeding.

There are various restrictions, mainly if you trade XRP with another cryptocurrency. A basic rule of thumb is that buying a cryptocurrency with fiat money, such as the U.S. dollar, is more straightforward than buying other cryptocurrencies.

However, if you choose to purchase XRP using a different cryptocurrency, you’ll need to build a crypto wallet that works with XRP before using the coin on the exchange that trades with XRP. Cove Markets recommend you should choose Binance, FTX, Coinbase, Uniswap, SuShiSwap for the best.

Read more: 


Find the trading platform that, in terms of security and usability, best suits you before making your buy. Therefore, do your homework before creating an account. Once your account has been filled, you can begin purchasing XRP.

Find the XRP currency on your preferred exchange, then input the desired investment amount.

Keep Your XRP Safe

Once you’ve purchased it, you’ll need a secure location to store your XRP.

An exciting limitation is a requirement that you hold at least 10 XRP in dedicated XRP wallets to activate your wallet on the XRP Ledger. Imagine it as the required minimum balance for a bank account.

This minimum amount must be saved in each account. You can get your money back by simply closing your account.

How to Store XRP Coins?

XRP can be kept in a variety of places:

  • Hardware Wallets: These are popular techniques for storing digital assets, allowing you to interact with the wallet without disclosing your personal information. Hardware devices hold the owners’ private keys to their investments. To conduct XRP transactions, these gadgets can connect to your computer, phone, or tablet. One hardware wallet that supports XRP is Ledger.
  • Paper Wallets: This approach is renowned for being cumbersome and open to phishing attacks. To send money using paper wallets, you need a private key. Using this procedure, you print your private keys and recovery passphrases, then keep the paper somewhere safe.
  • Software Wallets: Desktop wallets, often known as “hot” wallets, are applications you download to store your cryptocurrency. Mobile wallets are another option for interacting with and managing crypto assets. Remember that since most of these wallets function online, this method is frequently criticized for security reasons. Trust Wallet is one mobile wallet that accepts XRP.
  • Crypto Exchanges: You may keep your cryptocurrency on many exchanges that trade XRP. These cryptocurrency exchanges include, among others, Coinsmart, Crypto.com, and Binance.

Read more: Best Crypto Wallets For Storing Coins In 2023: Hot Wallets & Cold Wallets

Goals of Ripple

The primary objective of Ripple is to build a network that enables the fastest and most simultaneous execution of as many transactions as feasible. Ripple seeks to draw in businesses interested in the technology, such as central banks, remittance services, and payment providers.

Prospect of Ripple Crypto

Those who purchase Bitcoin know the cryptocurrency market’s inherent volatility. This is also true of XRP, as the coin has had jarring highs followed by sharp lows, frequently within a short period.

These locations are listed in the table below, so you know what to watch out for in the following years:

Year Potential High Potential Low
2022 $1.90 $0.50
2023 $3 $1.40
2025 $5.50 $2

How to mine Ripple coin?

Ripple mining differs from other cryptocurrencies mining. The only individuals who can mine XRP are those who created the asset. There are just 100 billion Ripple tokens created at the moment, and every transaction eliminates the Ripple currency used, meaning the same coin can’t be used further in other transactions.

What do you need to start mining Ripple coin?

ASICs are the most powerful mining hardware at present. However, they’re pretty expensive and miners usually look for other affordable solutions. One of the alternative is mining XRP with a GPU, but it’ll hardly generate a large turnout.

XRP mining software

There are 4 step before joining mining Ripple crypto you should follow:

  1. Ripple wallet: To start mining Ripple (XRP), you firstly choose a hot wallet to store your XRP, Cove Markets recommend you should pick MetaMask or Trus Wallet for the best. To start mining, you need to buy around 50 XRP and you can receive a equivalent of USD in your wallet.
  2. Crypto exchanges like Bittrex, Bitstamp, Bitfinex, Kraken and Binance let you trade XRP from fiat currencies like the dollar, pound, rupee and yen.
  3. Cloud mining is one of the most ideal ways for minng Ripple online because it doesn’t require any hardware. This method uses a remote data centre with a shared power to mine XRP coins.
  4. Joining Ripple mining pools is one of the best ways for cryptocurrency beginners to start mining Ripple online. You need to find a reliable miner, join a Ripple mining pool and start mining Ripple cryptocurrency. When miners successfully resolve cryptographic problems, they are awarded a fixed amount of XRP coins, distributed among all miners as per each miner’s effort.

How much does it cost to mine 1 Ripple?

It’s not easy to answer that how much you need to pay for mining 1 Ripple coin. It is mainly up to the cost of electricity in your country. If you want to make more profit from Ripple mining, you may be better off using an ASIC mining setup. Developed specifically for cryptocurrency mining, ASICs offer the perfect parameters for more efficient crypto mining.



How to earn XRP tokens?

You can earn XRP crypto with:

  • Crypto Faucets
  • Pay-to-click Sites
  • Affiliate marketing
  • Complete surveys
  • Ripple airdrops

Is XRP a stablecoin?

No, it’s not a stablecoin. But, soon, new XRPL-based stablecoin will be issued under USD ticker.

Should I buy XRP?

Consider making a small investment in XRP if you believe Ripple will keep expanding. Although it’s not entirely as secure as investing in equities, Ripple offers the possibility of a significant return.

Is investing in XRP risky?

Even in comparison to other cryptocurrencies and stock prices for cryptocurrencies, XRP coin is a risky investment.

Why is Ripple popular?

Low costs. Ripple offers a quicker transaction time than other cryptocurrencies like Bitcoin, Litecoin, etc. Ripple is a precious cryptocurrency for trading because it provides a similarly cheap transaction fee in addition to this benefit.

Read more: Litecoin Vs Bitcoin Comparison: Which Should You Invest 2023?

Is XRP a good investment?

According to PricePredictions forecasts, the long-term outlook for XRP is optimistic. They predict that the XRP average price will increase to 1.22 USD in 2023 and 3.63 USD in 2025.

What can I buy with XRP?

You can purchaseXRP as an investment, trade it for other digital currencies, or use it to speed up international financial transactions. For instance, if banks from two continents deal, they can swap their respective fiat currencies by utilizing XRP as the intermediary currency.

How is Ripple different from other blockchain projects?

The XRP employs a consensus protocol in contrast to other blockchains, whereby selected servers known as validators agree on the sequence and conclusion of XRP transactions every 3 to 5 seconds.

Can I convert Ripple coins to other currencies?

Yes, you may use Changelly Pro to exchange XRP for BTC. In addition to XRP and BTC, you may also do this with other currencies like ETH Gas or USDT.

How can I find more information about Ripple?

You can learn more about Ripple on related websites, exchanges, or by going straight to its website.(https://ripple.com/)


With the aspects Ripple delivers, it is in a solid position to dominate the cryptocurrency market. RippleNet has a niche, and it excels at filling that niche.

Above is detailed information about Ripple (XRP). Hopefully, the analysis on Covemarket has helped you understand what Ripple is, what XRP is, and have the most accurate and complete view of this coin.

Disclaimer: The information provided in this article is not investment advice from Cove Markets. Cryptocurrency investment activities are yet to be recognized and protected by the laws in some countries. Cryptocurrencies always contain financial risks.

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