Ripple vs. XRP vs. XRP Ledger: What’s the difference?

Key Takeaways:

• Ripple is a company that develops financial technology.

• XRP is a cryptocurrency used for fast and low-cost transactions.

• XRP Ledger is the blockchain network on which XRP operates.

Are you trying to understand the differences between Ripple, XRP, and the XRP Ledger? It's easy to get these terms mixed up because they are closely related. This article will clarify the differences between them, explore their history, and explain how the XRP Ledger operates. We'll also touch on how you can manage XRP and other XRPL tokens using Trust Wallet.

What is XRP?

XRP is a digital currency designed to facilitate fast and efficient global payments. Unlike some cryptocurrencies such as Bitcoin, XRP was pre-mined, meaning all 100 billion tokens were created at its launch. XRP is the native token of the XRP Ledger and is used to pay transaction fees on the network.

What is Ripple?

Ripple is a technology company that provides cryptocurrency solutions for businesses. The company uses the XRP Ledger and the XRP cryptocurrency to enable faster and more cost-effective international money transfers. Ripple's network, RippleNet, acts as an intermediary for transactions where parties use different currencies, conducting the transaction in XRP.

What is the XRP Ledger?

The XRP Ledger (XRPL) is a decentralized, open-source blockchain that acts as the foundation for XRP. Launched in 2012, it serves as a platform for recording and verifying XRP transactions. Unlike Bitcoin's Proof of Work or Ethereum’s Proof of Stake systems, the XRP Ledger employs a unique consensus mechanism. This mechanism involves a network of trusted validators that confirm transactions, with 80% agreement required to validate a transaction and add it to the ledger.

History of Ripple and XRP

Ripple was founded in 2012 with the goal of making international money transfers faster and cheaper. The development of the XRP Ledger began in 2011 with Jed McCaleb, David Schwartz, and Arthur Britto. Their goal was to create a better system for global transactions than what Bitcoin offered. Chris Larsen joined the team, and the company Opencoin was founded, which was later renamed Ripple Labs. In 2020, the XRP Ledger Foundation was formed to support the development and maintenance of the XRP Ledger.

Initially, the project was known as Ripple, encompassing XRP and the underlying technology. Over time, the distinction between the cryptocurrency (XRP) and the company (Ripple) became clearer, with the XRP Ledger operating as an independent, decentralized platform.

The development of the XRP Ledger was important for enabling secure and transparent transactions using XRP. Today, users can manage their XRP using an XRP wallet, like Trust Wallet, which provides secure storage for your digital assets.

How the XRP Ledger Works

The XRP Ledger operates differently from many other blockchains. It uses a consensus protocol where validator nodes, or 'validators', check transactions against network rules. Validators propose ledgers of transactions, and other validators compare these against their own results. If 80% of the validators agree on a ledger, the transactions are confirmed and added to the blockchain.

Each validator maintains a Unique Node List (UNL) of other validators it trusts. This system controls the overall health of the network by preventing unreliable validators from disrupting the consensus process.

Managing XRP with an XRP Wallet

To interact with XRP and other tokens on the XRP Ledger, you need an XRP wallet. An XRP wallet enables you to send, receive, and manage your digital assets. Trust Wallet recently introduced support for tokens issued on the XRP Ledger, expanding its functionality.

How to receive XRPL Tokens using Trust Wallet

You can easily also deposit XRPL tokens from another XRP wallet or from a centralized exchange, where supported. Before you receive and use a specific XRPL token in your wallet, you may need to “enable” it.

You can read our step-by-step guide on how to enable XRPL tokens in your Trust Wallet.

Once you’ve enabled your XRPL tokens, here’s Here’s how you can receive XRPL tokens using Trust Wallet:

• Select “Receive” from the home screen.

• Search for your desired XRPL token, and select it.

From here you have two options. You can either:

1. Copy your deposit address and use that on your exchange account or other wallet to send funds to.

2. Use the “Deposit from exchange” option to deposit crypto from your exchange account.

Closing Thoughts

Understanding the differences between Ripple, XRP, and the XRP Ledger is key to navigating the world of cryptocurrency. XRP is the digital currency, Ripple is the company using this currency, and the XRP Ledger is the underlying blockchain technology. With advancements like Trust Wallet's support for XRPL tokens, it's now easier than ever to manage your XRP assets.

Disclaimer: Content is for informational purposes and not investment advice. Web3 and crypto come with risk. Please do your own research with respect to interacting with any Web3 applications or crypto assets. View our terms of service.

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Note: Any cited numbers, figures, or illustrations are reported at the time of writing, and are subject to change.