1. The difference between Ripple and XRP
Ripple: is a software solutions company that provides payment solutions, currency exchange and remittance services to financial institutions. It was founded in 2012 and was originally called OpenCoin, and later changed its name to Ripple. Ripple's main product is RippleNet, a global payment network designed to provide fast and cheap international payment services. Ripple does not own or control the XRP ledger.
Ripple (XRP): is a digital currency originally developed by Ryan Fugger in 2004. In 2012, control of XRP was transferred to Jed McCaleb and Chris Larsen and Arthur Britto. The main use of XRP is as a bridge currency for the RippleNet network, allowing low-cost, high-speed conversions between different fiat currencies. XRP can process transactions in seconds and has extremely low transaction costs.
2. RippleNet transaction speed and fees
Transaction speed: Transactions on RippleNet are usually completed within 3 to 5 seconds, which is faster than cryptocurrencies such as Bitcoin and Ethereum.
Transaction Fees: The fee per transaction is extremely low at 0.00001 XRP.
Destruction mechanism: XRP tokens are destroyed in transactions and cannot re-enter the circulation pool, so the supply of XRP is limited.
3. Supply and Distribution of XRP
Pre-mining mode: The total supply of XRP is 100 billion, and most XRP is locked out of circulation. The current circulation is about 45 billion, and the rest is locked by Ripple.
Monthly Release: Ripple regularly releases up to 1 billion tokens every month, with quarterly reports detailing the number of tokens released and sales.
4. Ripple’s funding sources
Token Sales: Ripple’s sale of its XRP tokens to fund operations has been a source of criticism and could affect the confidence of major institutional investors.
5. Ripple’s cooperation with financial institutions
Partners: Ripple has partnered with more than 200 financial institutions around the world, including remittance company MoneyGram, which accepted Ripple’s XRP as market development fees. That partnership ended in 2021.
6. XRP’s decentralization controversy
Consensus Algorithm：XRP uses the Ripple Protocol Consensus Algorithm (RPCA) instead of the traditional Proof of Work (PoW). RPCA relies on a "Unique Node List" (UNL) of about 36 validators who are responsible for completing transactions. The centralization of UNL optimizes XRP's transaction speed and fees, but it also sparked controversy over decentralization.
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