What Is Ripple (XRP)?

What Is Ripple (XRP)?

What Is Ripple 

Ripple is a global payment network which utilises blockchain infrastructure to provide faster,  more cost-effective and efficient transactions compared to traditional international money transfer systems such as SWIFT. The protocol focuses on providing cross-border payments, Central Bank Digital Currencies (CBDCs) and Stablecoins solutions, and being a bridge between the traditional fiat system and crypto. 


Ripple is more efficient than traditional money transfer systems as it does not require the use of intermediaries such as correspondent banks. This not only saves time but also money. 


For example, a transaction between a US bank account to a Japanese bank account using the SWIFT network can take between 3-5 days to settle while the same transaction can happen almost instantly using the Ripple network. Additionally, a Ripple transaction typically costs less than $0.01 while a SWIFT transaction can cost $25 or more.


How Does Ripple Work

Ripple uses XRP Ledger (XRPL), an open-source blockchain protocol and digital payment platform. It serves as the underlying technology for the XRP cryptocurrency. Unlike other cryptocurrencies such as Bitcoin and Ethereum which use Proof of Work and Proof of Stake respectively, XRPL utilizes a more centralized consensus protocol, called the Ripple Protocol Consensus Algorithm (RPCA).


Instead of relying on energy-intensive mining like some other blockchain networks, the Ripple consensus protocol achieves agreement among a set of validators, typically around 150. While anyone can download the network’s validation software, only validators approved by the network and on its Unique Node List can participate in and verify transactions on the network. The relatively small number of validators in the XRP Ledger network provides stability and security. 


The group of validators will work together to validate transactions and order them into ledgers. These ledgers, containing a list of transactions, are created every few seconds. This consensus process happens in rounds.


XRPL imposes a small transaction fee, also known as base reserve, to prevent network spam and DDoS attacks. This fee serves as an anti-spam mechanism and is destroyed, not collected by validators.


Benefits of Ripple

With its design and technology, Ripple can function more efficiently than other cryptocurrencies such as Bitcoin. Here are some of the benefits of the Ripple network.


Fast Transaction Speed

Transactions on the Ripple network are settled within seconds, ranging between 3-5 seconds. For comparison, Bitcoin takes 500 seconds to settle a transaction.


Low Transaction Cost

Transaction fees on the Ripple network cost $0.0002 per transaction on average which makes transaction costs on the network very affordable. For comparison, the cost of a transaction on Bitcoin is $0.5.



With its ability to handle 1,500 transactions per second, the Ripple network is up there with standard payment processors such as Visa, which is able to manage 1,700 transactions per second. For comparison, Bitcoin is only able to handle 3 TPS.


Ripple’s scalability makes it an attractive option for banks and financial institutions that require a stable infrastructure for high transaction volumes. Many other blockchains, in contrast, typically can only handle a fraction of the above-mentioned transactions which makes it non-viable for banks and financial institutions. 


Energy Efficient

Because validators do not need to compete to solve complex mathematical problems, validators on the Ripple network can operate efficiently to validate and verify transactions. 


As such, the Ripple network is 61,000x more energy efficient than blockchains that utilise the Proof of Work consensus mechanism. 


XRP Key Features

These are some of the key features of XRP:


Bridge Currency

XRP serves as a bridge currency for cross-border payments which financial institutions can use it as an intermediate currency when conducting cross-border transactions. XRP helps improve liquidity and reduces the need for pre-funded accounts.


Escrow Feature

The escrow feature provides a secure and trustless way to hold XRP for a specified period or until certain conditions are met. Individuals or entities can benefit from it when conducting business agreements, time-sensitive transfers, and secure transactions.



Multi-signing allows users to enhance security and add an extra layer of protection to their XRP accounts by requiring multiple authorised signatures for certain transactions. This can be useful for businesses, organisations, and individuals to help prevent unauthorised access to their XRP accounts.


Payment Channels

Payment Channels, which are variations of smart contracts, enable more flexible and dynamic transactions on XRPL. Users can create “channels” to interact with one another and these payment channels are multi-signature wallets with pre-allocated funds.


The payment channel is established by one party, who deposits and sends XRP payments within the channel to the other party without the need for on-chain transactions for each payment. This allows for reduced transaction fees and faster transaction times compared to traditional on-chain transactions.


XRP Tokenomics

XRP has a total supply of 100,000,000,000 coins of which 99,988,380,689 tokens are in circulation as of October 2023.  


XRP reached an all-time price high of $3.84 on December 22, 2017. Since its all-time high, the price of XRP has fallen by more than 80% as of October 2023. With a circulating supply of 99.98 billion XRP coins, Ripple has a market capitalisation of $25.82 million.


What Banks Are Using Ripple

Many major banks and financial institutions use the Ripple payment network. The list includes but is not limited to:


  • PNC Bank
  • Santander Bank
  • Standard Chartered 
  • Cuallix
  • Skandinaviska Enskilda Banken (SEB)
  • Mitsubishi UFG
  • Bank of America
  • Siam Commercial Bank


Who Created Ripple

Ripple was founded in 2012 by Jed McCaleb, Arthur Britto, and Chris Larsen. McCaleb, one of the founders of Ripple, was the co-founder of Mt. Gox, one of the earliest Bitcoin exchanges and eDonkey, a file-sharing platform. 


Britto is one of the co-founders of Ripple and the co-founder and president of PolySign. Chris Larsen is one of the co-founders of Ripple and is a serial entrepreneur having co-founded other companies such as online mortgage lender E-Loan and Prosper Marketplace.


XRP has managed to raise a total of $293.8 million in funding over 14 rounds as of October 2023. Some notable investors in XRP include Andreessen Horowitz, Reid Hoffman, Peter Thiel, Sequoia Capital, Pantera Capital, and Google Ventures.


How To Trade XRP On The Flipster App

To trade XRP on Flipster:


  1. Download the Flipster app and set-up your account
  2. Go to [Trade]
  3. Click on [Search] at the top of the page and type in XRP
  4. Click on XRP
  5. In the [Amount] field, type in the amount of XRP you wish to buy or sell. Alternatively, you can select the percentages below to choose how much to use from your available funds.
  6. Click [Preview order] to check your order
  7. Once you have confirmed the details, click on [Buy XRP – Long] button or [Sell XRP – Short] respectively.


Disclaimer: This material is for information purposes only and does not constitute financial advice. Flipster makes no recommendations or guarantees in respect of any digital asset, product, or service. 


Trading digital assets and digital asset derivatives comes with significant risk of loss due to its high price volatility, and is not suitable for all investors.