Ripple

Ripple is a cryptocurrency platform, with its transactional protocol being XRP. Similar to other cryptocurrencies, Ripple operates on a distributed ledger network that requires multiple parties for transaction validation instead of a single centralized authority. This design enables global transactions and significantly reduces transfer fees compared to other cryptocurrencies like Bitcoin. Moreover, XRP transfers are virtually instantaneous, eliminating the typical confirmation time.

The Founding of Ripple

Unlike many other cryptocurrencies that rely on a vast network of developers, Ripple was created and continues to be supported by one company - Ripple Labs. Unlike Bitcoin or Ethereum which have fluctuating or theoretically unlimited amounts of currency respectively, Ripple launched with all 100 billion of its XRP tokens from the beginning. There is no mining involved in maintaining this number and most tokens are held by Ripple Labs itself – around 60 billion as per recent counts.

Ripple Labs' Holdings

With each XRP valued at approximately half a dollar currently, Ripple Labs holds roughly $20 billion worth of the cryptocurrency (note: The value is subject to market fluctuations). It has 55 billion XRP in an escrow account from which it can sell up to a billion per month for funding new projects and acquisitions. However, such sales could significantly impact the cryptocurrency's value and are not part of Ripple Labs' immediate plans.

The Vision Behind Ripple

Rather than aiming to separate financial transactions from traditional financial institutions like Bitcoin and other cryptocurrencies do, Ripple seeks to enhance banking transactions worldwide using XRP's technology. Essentially, it takes an almost opposite approach in every sense.

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