Ripple Executive Corrects the Biggest Misconception About XRP
Highlights
- Ripple executive Reece Merrick corrects the misunderstanding that Ripple and XRP play the same roles, explaining that they have different uses.
- Ripple CTO also recently, clarified that XRPL is not XRP.
- Identifying the differences between Ripple, XRP and the XRP Ledger is very important.
A recent post by senior executive officer Reece Merrick on X has sparked interest in the crypto world. Merrick addressed the common misunderstanding about Ripple and XRP.
Understanding the Differences Ripple and XRP
According to the Ripple Executive’s X post, many think Ripple and XRP are the same thing. That’s not true, and Merrick explained the difference in simple terms.
Ripple is a private company that creates blockchain tools for businesses. It focuses on payments and custody solutions. The company builds products that use the XRP Ledger (XRPL) and XRP. This is usually where the lack of clarity starts. The XRPL is a blockchain network that is not owned or managed by any single entity. Anyone is welcome to use or modify it because it is open-source. Ledger is known for quick settlement of transactions which happens in about three to five seconds.
One more benefit is that it’s very affordable, at just $0.0002 for each transaction. Also, it can process over 1,500 transactions every second which allows it to handle a great number of transactions within a short period. Recently,
The Digital Asset and the Blockchain
XRP is a cryptocurrency that was created as the native token for the XRP Ledger. This network uses it as its main currency. Even though Ripple relies on XRP and the XRP Ledger in its products, the two operate apart from one another. It runs as a business, while the XRP Ledger is an open-source public blockchain and XRP is its digital coin. Ripple CTO David Schwartz also clarified that XRPL is much more than just XRP.
A lot of those who are new to cryptocurrency view Ripple and XRP as being the same. Distinguishing these terms can improve people’s decisions in regard to the cryptocurrency.
So, a purchase of XRP is directly for the digital asset, not for a share of the company that created it. Merrick’s post will now encourage some people to focus their research on learning about the speed and affordability offered by the XRPL.
Others will seek a better understanding about the role of the company in transaction and payment industry. As the crypto ecosystem is expanding, this post and similar ones will help individuals who are searching for ways to learn about it and blockchain, the technology that powers it.
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