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Ripple and XRP, two terms often used interchangeably, have caused confusion in the cryptocurrency space. In this article, we delve into their origins, development, and distinctions to provide clarity for all XRP enthusiasts.
The Birth of RippleNet
Our journey begins in 2004 when Canadian Ryan Fuguerre conceived the RippleNet prototype. Initially known as RipplePay, it introduced a novel approach to online payments. Remarkably, RippleNet predates Bitcoin, with Satoshi Nakamoto's development work commencing in 2007 and the official Bitcoin announcement in 2008.
The Emergence of the XRP Ledger
In 2011, Jed McCaleb, creator of the file-sharing network eDonkey and the infamous Mt.Gox exchange, turned his attention to this emerging technology. The XRP Ledger, originally named “Ripple” due to its underlying technology, was crafted in 2011 and early 2012 by Jed McCaleb, Arthur Britto, and David Schwartz.
Today, the XRP Ledger (XRPL) operates as a decentralized public blockchain, diligently maintained by independent members of the global “XRP community,” including active participant Ripple.
Ripple Labs' Role
September 2012 marked a pivotal moment when Jed McCaleb and Arthur Britto, alongside Chris Larsen, established OpenCoin Inc. They committed to developing RippleNet (Ripple) on the XRP Ledger and received 80 billion XRP tokens in return. Ripple Labs, initially known as OpenCoin, underwent a name change to Ripple Labs under the leadership of CEO Chris Larsen. The company later streamlined its name to “Ripple.”
Deciphering RippleNet and XRP
RippleNet stands as a payment platform owned by Ripple, facilitating real-time gross settlements on the XRP Ledger.
On the other hand, XRP is an autonomous digital asset, the native cryptocurrency of the XRP Ledger, officially born on June 2, 2012. The ledger's inception involved the creation of 100 billion XRP, and no additional XRP can ever be generated.
The moniker “XRP” emerged as a fusion of “ripple credits” and “ripples,” incorporating the prefix “X” often associated with non-national currencies in the ISO 4217 standard. This nomenclature clarification helped avoid confusion between the asset and the technology or company. In May 2018, the XRP community adopted a new logo for XRP.
Unveiling the ‘Drop'
To further complicate matters, the smallest indivisible unit of XRP is referred to as a “drop,” honoring Jed McCaleb, who previously referred to it as a “jed.”
Understanding these intricacies sheds light on the recurring confusion surrounding Ripple, XRP, and the XRP Ledger.
Ripple, XRP, and the XRP Ledger form an interconnected ecosystem, each with its distinct role and purpose. While RippleNet facilitates seamless payments, XRP serves as the native cryptocurrency of the XRP Ledger. Clarifying these relationships helps navigate the intricate world of Ripple and XRP with confidence. Join our Telegram community for more insights and discussions.
