- XRP is a digital token, not a stake in Ripple Inc.
- Ripple builds payment tools that use but don’t control XRPL
- XRPL offers fast, low-cost transactions with 1,500 TPS capacity
Ripple’s senior executive has clarified widespread confusion about the distinction between Ripple and the XRP cryptocurrency. The statement stated that the company and XRP are separate and there is no ownership connection between them. This has sparked a debate within the blockchain communities.
XRP Clarification
XRP is the native digital currency on the XRP Ledger which is a decentralized blockchain. The XRP Ledger enables fast and low cost fund transfers. Ripple uses XRP in a number of its solutions, but it does not control the ledger.
Ripple, a private fintech firm, creates tools based on blockchain to support payments across borders and manages digital assets. It creates products that make use of XRP and the XRP Ledger to improve efficiency. The XRP Ledger is however open-source and operates without a central authority.
The executive stressed that XRP is not the same as a company share and does not show ownership in Ripple. A lot of investors think that buying XRP gives them a stake in Ripple’s operations. This has resulted in misinterpretations about the worth and purpose of cryptocurrencies.
The Role XRPL in Ripple
XRP functions as a utility token within the XRP Ledger, which processes transactions in three to five seconds. It supports over 1,500 transactions per second, at transaction fees as low as $0.0002. These features make it a suitable option for high-speed and low-cost transfers.
Ripple includes the XRP Ledger in its products, but it does not control the blockchain network. The company only focuses on product development and does not control the operations of the ledger. The decentralized structure of XRPL, makes it open and accessible for everyone.
Reece Merrick, the Ripple executive, explained the issue through a social media post that addressed the misconception. The post intended to inform newcomers as well as professional crypto market traders. It has attracted a lot of attention and stirred more debates about transparency in blockchain projects.
XRP Ledger Speed, Scale and Independence
The XRP Ledger is structured to ensure no one can control or limit its operations. People are free to use, extend or modify the network for different purposes. The open structure makes it possible for the ecosystem to develop freely, without dependence on corporate decisions.
The company seeks to improve its payment system through blockchain technology to boost the speed of transactions. It provides fast and low-cost payment services to financial institutions around the world. The company’s use of XRP is focused on its usefulness and not asset ownership.
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