XRP vs Ripple, what is the difference?

XRP vs Ripple is a question of asset versus company. XRP is the native coin of the XRP Ledger, an open-source blockchain, while Ripple is a US technology company that sells payment and custody services and holds a large amount of XRP. The names get mixed up because they were once the same word, and because Ripple is the biggest promoter of XRP.

Is XRP the same as Ripple?

No. According to the XRPL history page, the project and its network were originally all called Ripple, and the coins were called "ripples" with the code XRP. Over time the community settled on XRP for the asset and XRP Ledger for the network.

The company went through its own name changes. It was formed in September 2012 as NewCoin, quickly renamed OpenCoin, became Ripple Labs in 2013 and later just Ripple. XRPL.org describes Ripple as a technology company and XRP as a digital asset independent of it. For the coin's legal history with the SEC, see what is XRP.

What is the XRP Ledger?

The XRP Ledger is a public, permissionless blockchain that David Schwartz, Jed McCaleb and Arthur Britto began building in 2011. It went live in June 2012, and Chris Larsen joined the effort shortly after development began.

There is no mining. Each server picks a Unique Node List, a set of validators it trusts, and a new ledger version is confirmed once enough of them agree. The consensus docs say the network keeps running while fewer than 20% of trusted validators are faulty. XRPL.org says transactions settle in about 3 to 5 seconds. Besides XRP, the ledger carries issued tokens such as the RLUSD stablecoin.

XRP vs XRPL, what is the difference?

XRPL is shorthand for the XRP Ledger, the network and its rules. XRP is the currency built into it. XRPL.org says XRP pays transaction fees, helps protect the ledger from spam and can act as a bridge between currencies on its built-in exchange.

The supply is fixed. All 100 billion XRP were created at launch, and no more can be made. A small fee in XRP is destroyed with every transaction. Ripple's company products, such as its payments software, are separate again, as covered in XRP vs SWIFT.

Does Ripple own XRP?

Ripple owns a large amount of XRP but not the asset itself or the network. The founders gave the company 80 billion XRP. In 2017 Ripple locked 55 billion of it in on-ledger escrows that release up to 1 billion XRP a month, with any unused amount placed back into a new escrow. XRPL.org said 38 billion XRP was still in escrow as of October 2024.

On control, the XRPL FAQ is direct: Ripple does not own or control the XRP Ledger, and its rights are the same as any other contributor's. The FAQ says Ripple ran only one of the 35 or more validators on the default list as of July 2023, and that anyone can run a validator. Critics argue that a company holding this much supply still has outsized influence, a debate covered in Bitcoin vs XRP.