Ripple, XRP and XRP Ledger: What’s the Difference and How Are They Related

Confusion among Ripple, XRP, and XRP Ledger often leads to investor mistakes and misinterpretations of the news. In this article, we clarify how these three elements interact, what risks the SEC lawsuit poses, and why XRP Ledger is known as the “blockchain for institutions.”


1. Ripple: The Development Company, Not a Cryptocurrency

Ripple is a technology company founded in 2012 that focuses on international payments. Its products include:

  • RippleNet: A network for banks and financial institutions (e.g., Santander, SBI Holdings).
  • On-Demand Liquidity (ODL): Utilizing XRP as a bridge for currency conversion.

Important: Ripple does not control the XRP Ledger, but it owns approximately 45 billion XRP out of a total issuance of 100 billion.


2. XRP: The Cryptocurrency for Instant Transactions

XRP is a digital asset used on the XRP Ledger. Its features include:

Parameter Value
Transaction Speed 3-5 seconds
Fee Approximately $0.0002
Issuance 100 billion (non-mined)

According to Messari, 80% of XRP transactions are related to ODL rather than speculation.


3. XRP Ledger: A Decentralized Blockchain

XRP Ledger (XRPL) is an open blockchain launched in 2012. Its key features include:

  • Consensus Algorithm: Uses Proof of Correctness (PoC) instead of Proof of Work.
  • Decentralization: Over 150 validators, including Ripple, universities, and community members.
  • NFT and DeFi: Supports asset tokenization since 2022.

4. The SEC vs. Ripple Lawsuit: How Does It Affect XRP?

In 2020, the SEC filed a lawsuit accusing Ripple of selling unregistered securities (XRP). As of 2024, the outcomes include:

  • Institutional Sales: Deemed a violation of the law.
  • Exchange Sales: Judge Torres ruled that XRP is not a security.
  • Fine: Ripple could face fines up to $1.3 billion.

Crypto law expert Jeremy Hogan stated, “This case has set a precedent—other altcoins may avoid being classified as securities.”


5. Comparison with Competitors: SWIFT, Stellar, Ethereum

Platform Speed Fee Decentralization
XRP Ledger 3-5 sec $0.0002 Moderate
SWIFT 1-5 days $30-50 Centralized
Stellar 3-5 sec $0.00001 High

6. Risks for Investors: What Could Bring Down XRP?

  • Legal Outcome: The SEC may appeal the ruling, renewing pressure.
  • CBDC Competition: Central bank digital currencies could replace cross-border payments.
  • Dependence on Ripple: Since Ripple owns 45% of XRP, large sales could crash the price.

Conclusion

XRP Ledger is a technologically advanced blockchain, but its future is closely tied to Ripple and ongoing legal battles. Investors should closely monitor SEC decisions and how banks adapt to ODL. As Ripple CEO Brad Garlinghouse put it, “We are building an internet of value—slowly but irreversibly.”

13.02.2025, 18:29