What is Ripple (XRP) and How Does It Work?

Ripple (XRP) is one of the most well-known cryptocurrencies on the market, widely recognized for its strong ties to financial institutions and its ability to enable fast international transactions. Although it was launched back in 2012, it continues to attract significant interest from investors.

In this blog, we explore what Ripple is, how its network works, how XRP differs from other cryptocurrencies, and why it continues to draw attention from the public.

How It All Started: The History of Ripple

Ripple (XRP) is now recognized globally for its speed and efficiency in enabling international crypto transactions—but its story goes back much further.

It all began in 2004, when developer Ryan Fugger launched RipplePay, a decentralized digital payment platform that was ahead of its time. The project didn’t gain much attention back then, and development slowed until 2012, when a new team led by Jed McCaleb, co-founder of Mt. Gox, joined the effort.

Later that same year, a private company called OpenCoin was founded. The team soon launched its own digital token—XRP—with a total supply of 100 billion tokens, a significant portion of which was retained by the founding team. By 2013, OpenCoin rebranded to Ripple, the name we know today.

Today, Ripple is a corporation headquartered in San Francisco, with offices around the world. It employs over 350 people, and its mission remains the same: to modernize the way money moves across the globe.

Key Features of Ripple: What Makes It Different?

Ripple stands out from most other cryptocurrencies because it’s not designed for everyday peer-to-peer payments, but rather as an infrastructure solution for financial institutions. Its main goal is to enable fast, secure, and cost-efficient cross-border transactions.

RippleNet Network

RippleNet is a global payment network used by banks, payment providers, and other financial institutions. Thanks to this network, transactions that once took several days can now be completed in just a few seconds—with significantly lower fees.

XRP Token

XRP is a digital token used as a bridge between different fiat currencies within the RippleNet network. Its role is to reduce costs and improve liquidity during currency conversions. Unlike Bitcoin, XRP is not mined—it was pre-generated, and Ripple gradually releases portions of the supply into circulation.

Speed and Scalability

XRP transactions are confirmed in just 3–5 seconds, making Ripple one of the fastest blockchain platforms. The network can process around 1,500 transactions per second, with the potential for even higher throughput in the future.

Low Energy Consumption

Unlike Proof-of-Work networks like Bitcoin, Ripple uses its own consensus algorithm that doesn’t require high energy consumption. This makes it a more energy-efficient and environmentally friendly solution.

Bank Partnerships

Ripple actively collaborates with banks and financial institutions around the world, strengthening its position as a legitimate player in the traditional financial system. Its partners include major global banks such as Santander, Standard Chartered, and PNC.

XRP Tokenomics

XRP has a fixed total supply of 100 billion tokens, all of which were created at the launch of the project.

From the beginning, XRP’s distribution has been more centralized compared to most other cryptocurrencies. This was done with the goal of funding Ripple’s network development and encouraging adoption among financial institutions.

80% of the total XRP supply was allocated to Ripple Labs, while the remaining 20% was distributed among the project’s co-founders.

Ripple Labs has sold portions of its XRP holdings on the open market or through strategic partnerships with financial institutions.

A large portion of XRP is held in escrow accounts, with up to 1 billion XRP released each month. This model was designed to ensure a predictable supply schedule and maintain market stability.

Any tokens not used in a given month are returned to escrow, further limiting supply pressure.

Ripple uses XRP to provide liquidity within the RippleNet network. Its distribution model is aligned with long-term goals—building trust, enhancing security, and driving adoption within the traditional financial system.

What Is the Price of XRP?

You can check the current and real-time price of XRP here.

XRP reached its all-time high in early 2018, when its price briefly exceeded $3.00 USD. Since then, its value has pulled back significantly, but XRP remains one of the most traded and well-known cryptocurrencies on the market.

The value of XRP is largely influenced by regulatory developments and Ripple’s ongoing partnerships with banks and financial institutions around the world. For years, additional pressure on the price came from the legal dispute with the U.S. Securities and Exchange Commission (SEC). However, a partial court ruling in 2023 gave XRP a positive boost.

At the time of writing, XRP ranks among the top 10 cryptocurrencies by market capitalization, which stands at approximately $29 billion USD.

How Does the XRP Network Work?

Unlike Bitcoin, which uses the energy-intensive Proof of Work (PoW) mechanism to validate transactions, XRP relies on its own Ripple Protocol Consensus Algorithm (RPCA)—a faster and more efficient approach to validation.

At its core, a consensus mechanism is a set of rules that allows users to exchange value without the need for centralized intermediaries like banks.

In the case of XRP, transactions are validated by a group of independent validators—specialized servers that continuously monitor the network and compare data. When a majority of validators agree that a transaction is valid and complies with network rules, it is confirmed and becomes final and immutable. Any duplicate or unapproved transactions are automatically rejected.

Interestingly, validators do not receive any compensation for their work. Still, the network remains stable because validators are driven by various motivations: trust in the network, reputation, institutional interest, and a desire to participate in an innovative financial ecosystem.

How to buy XRP for beginners

Buying XRP tokens is a quick and straightforward process. Here’s how you can purchase them using the Bitcoin Store platform:

1. Create an Account and Verify Your Identity

To get started, you’ll need a Bitcoin Store account and a wallet to store your XRP tokens. If you don’t have an account yet, we recommend following our beginner’s guide, which walks you through the entire registration process.

After creating your account, you’ll need to complete the identity verification process. This step is required to ensure user security and compliance with legal regulations.

2. Deposit Funds to Your Account

Before buying XRP, you need to deposit funds into your Bitcoin Store account.

Choose your payment method: You can fund your account via bank transfer, credit/debit card, or by making a cash deposit at one of our physical Bitcoin Store locations.

Make a deposit: Enter the amount you wish to deposit and follow the on-screen instructions. Your funds will appear in your account shortly.

3. Buy XRP Tokens

Once your funds are available, you can easily buy the desired amount of XRP.

Go to the Prices section and type “XRP” or “Ripple” into the search bar.

Click on the Buy XRP option and enter the amount you’d like to purchase—either in euros or in XRP tokens.

The platform will automatically display the value based on the current market price.

Review the order details and click Buy XRP for EUR to complete your transaction.

After the purchase is successful, the XRP tokens will appear immediately in your Bitcoin Store Wallet, where you can store them, send them, or swap them for other cryptocurrencies.

Where to Buy Ripple (XRP)

If you want to buy Ripple (XRP) but prefer to do it in person and with cash, Bitcoin Store offers a simple and secure solution through its physical exchange offices.

How to buy Ripple with cash

You can buy XRP quickly and easily with cash at our physical cryptocurrency exchange offices located in Zagreb, Rijeka, Osijek, and Split—with professional assistance from our team.

How Does the Process Work?

1. Visit the Nearest Branch
No appointment is needed—just visit one of our locations and bring a valid form of ID (national ID card or passport).

2. Identity Verification
In line with legal requirements, a basic identity verification is needed to buy cryptocurrencies. Our team will guide you through this step quickly and discreetly.

3. Deposit Cash
Choose the amount you wish to invest and deposit it in euros. Our system will automatically calculate how much XRP you will receive based on the current market price.

4. Complete the Purchase
After confirmation, your XRP tokens will be transferred either to your Bitcoin Store Wallet or to another wallet address of your choice. The transaction is completed in just a few minutes.

If you prefer a personal approach and want to make your purchase face-to-face, buying XRP with cash at a Bitcoin Store branch is one of the most convenient options available.

Ripple (XRP) – Frequently Asked Questions

Is Ripple a good investment?

XRP has remained one of the most recognized cryptocurrencies on the market for years—especially due to its partnerships with financial institutions and its unique role in global payment systems. It has a clear use case within the RippleNet network, which sets it apart from many other digital assets that often lack real-world utility.

However, it’s important to note that the cryptocurrency market is highly volatile. While some investors have profited during XRP price surges, value drops are equally possible. Before making any investment decision, it’s recommended to research the project thoroughly and assess your own risk tolerance.

What is the all-time high of XRP?

XRP’s all-time high (ATH) was recorded in January 2018, when the price reached approximately $3.84 USD per token. This peak occurred during a broader crypto market bull run, followed by a significant correction.

XRP’s price is strongly influenced by market trends, regulatory developments, and the progress of Ripple’s technology—meaning it can change rapidly.

How is XRP different from Bitcoin?

While both are cryptocurrencies, XRP and Bitcoin serve different purposes and rely on different technologies.

• Bitcoin was created as a decentralized digital currency designed to enable peer-to-peer payments without intermediaries.
• XRP, on the other hand, was developed to facilitate fast and low-cost international transactions—primarily for banks and financial institutions.

Another key difference is the underlying technology: Bitcoin uses a Proof-of-Work (PoW) mechanism, which involves mining. XRP, however, uses its own consensus protocol that doesn’t require mining, allowing for faster transactions and significantly lower energy consumption.

What is the XRP Ledger (XRPL)?

The XRP Ledger (XRPL) is the decentralized blockchain technology that powers XRP. It’s an open, public network that supports not only XRP transfers, but also various other functionalities such as the issuance of digital assets, decentralized exchange (DEX), and smart contract capabilities through different protocols.

XRPL is known for its high speed, low transaction costs, and energy efficiency—with transactions typically confirmed in just a few seconds.

Is XRP used by banks?

Yes, Ripple collaborates with numerous banks and financial institutions around the world through its payment network, RippleNet. Some of these institutions use XRP as a bridge currency for cross-border payments to reduce costs and speed up transactions.

However, it’s important to note that not all partner institutions use XRP directly—some use RippleNet without relying on the token itself. The adoption of XRP in the traditional financial sector depends on specific use cases and regulatory environments in different countries.

Can I earn XRP through staking options and rewards?

Currently, XRP is not designed for traditional staking like cryptocurrencies that use a Proof-of-Stake (PoS) mechanism. However, some third-party platforms may offer yield-generating opportunities through lending or liquidity services involving XRP—but these typically come with additional risks.

It’s always advisable to thoroughly research the terms and trustworthiness of any platform before engaging in such activities.

What is XRP price prediction for 2030?

Price predictions for any cryptocurrency—including XRP—can vary widely and are often based on market sentiment, regulatory developments, and technological progress.

Some analysts suggest that if Ripple successfully expands the adoption of its technology among global financial institutions, XRP’s price could see substantial growth. On the other hand, regulatory challenges or the emergence of competing solutions could negatively impact its market performance.

Given the high volatility of the crypto market and many external factors, any long-term forecast should be viewed with caution and should not be considered a guarantee of future performance.

Disclaimer: The information and opinions presented in this blog are intended solely for informational purposes. The content does not constitute a recommendation to use any product or service, nor does it represent financial, investment, or trading advice. Before making any financial decisions, readers are strongly advised to consult with licensed and qualified professionals.