Ripple and XRP are often used interchangeably on most crypto trading and exchange websites. But strictly speaking, Rippleisn’t the same as XRP. Ripple is a private company that uses advanced blockchain technology to enable a network of real-time payment, exchange and remittance services built on a distributed ledger database, the XRP ledger. Ripple’s payment services support multiple currencies, including fiat.
XRP, also known as Ripple coin or just Ripple, is the actual token, Ripple’s digital asset. XRP is used on the Ripple network to facilitate money transfers between different currencies. By first converting the value of the transfer into XRP (rather than a fiat currency like USD), exchange fees are avoided, and payments can be processed instantly.
We want to keep focusing on making XRP a valuable payments tool, and that value will increase accordingly. – Brad Garlinghouse, Ripple CEO
The speed and efficiency of Ripple’s system have led to its adoption by big mainstream financial institutions like Bank of America and Spanish banking giant Santander.
XRP’s price is technically independent of the Ripple network. Clients aren’t forced to use the cryptocurrency. Still, the increased adoption of the Ripple payment system will affect XRP price predictions as mainstream interest grows.