What Is The Difference Between Ripple And XRP?
Bitcoin is the king of crypto. But, it is also very important to learn about the other important projects in the crypto space. There are many projects that are doing really groundbreaking work. Ripple is one of the corporations that is laying down the groundwork for a financial revolution.
When people talk about Ripple and XRP, they generally tend to use the two interchangeably. However, that’s incorrect. It’s important to learn the differences to invest wisely. Especially if you have been searching about how to buy Ripple Canada. The following goes into detail about each and how they are different.
What Is Ripple?
Ripple is basically the corporation behind the cryptocurrency XRP. It was once called OpenCoin which was rebranded to Ripple Labs in 2013. It was again rebranded to just Ripple in 2015. This company owns the majority of XRP’s supply.
The idea behind this company from the very beginning was to establish a decentralized monetary system. Over the years, their goal has evolved quite a bit. They now want to enable different countries to send money easily using the capabilities of cryptocurrency. They want transactions to take place instantly, reliably and with negligible costs.
Ripple has been one of the most successful companies in the crypto space. It has signed on numerous financial institutions to its growing network called RippleNet. In the future, they want every bank and other financial institutions to be powered by their technology.
What Is XRP?
XRP is the cryptocurrency part of the project. It is what powers the transactions on RippleNet. It is in turn powered by the XRP ledger. It is this that has also become a point of controversy among crypto enthusiasts. They say that XRP is not truly a cryptocurrency as it is not based on blockchain technology. However, XRP, for the most part, acts like crypto.
At the time of writing this, XRP is the third-largest cryptocurrency by market capitalization. It is a market cap of $12 billion. Since more and more financial institutions have begun to use it as a bridge between different fiat currencies, its market cap is estimated to grow even more. That’s why the interest in people about how to buy XRP is also continuously growing.
Differences between Ripple and XRP
This is where most people make a mistake. They think that the two are the same. However, there are many points of differences between the two.
Ripple is a corporation that develops the technology needed for a better monetary system. XRP is the cryptocurrency that powers RippleNet.
Ripple wants to make receiving and sending money between countries easier. They want to simplify global financial transactions. XRP wants to act as a bridge between the different fiat currencies of the world.
Ripple does not own or control the XRP technology. It just uses that technology for its products. XRP is an open-source cryptocurrency that can be used by anyone including Ripple.
The Separation of Ripple & XRP
Since the beginning, Ripple has faced criticism about the confusing relationship it has with XRP. It owns a significant amount of the XRP supply and sells a large chunk from time to time. This has led to questions about the XRP’s decentralization. Sceptics say that XRP is a centralised cryptocurrency. This goes opposite of what the cryptocurrency community stands for.
That’s why Ripple has tried to separate itself away from XRP by using rebranding as a tool. In recent years, people have started to understand the differences between the two.
The Implications of Separation of Ripple & XRP
The greater clarity about the differences between the two will be better for both. Investors will be able to make better decisions according to their needs. So, instead of searching for how to buy Ripple, they can search for how to buy XRP. This will also ease some of the regulatory pressures on the company Ripple.
The separation will also improve the perception of both Ripple and XRP. People might begin to see XRP as being more decentralized. This will allow the crypto enthusiasts to finally get involved.
Is Ripple Legal?
Ripple is perfectly legal in Canada. So, you can buy, sell and trade XRP if you live in Canada. You can register on a Canadian exchange and buy your first XRP coins to get started. At PCCEX, we make it as easy as it can get for you to buy XRP and sell XRP. Make sure you meet your tax obligations whenever you are investing in XRP or any other cryptos.
Ripple In Canada
Ripple has made some headlines in Canada as well. Remittance providers in the country are looking towards cutting edge solutions to make money transfer easier. Zip Remit is a Toronto-based remittance company that partnered with Ripple in 2018. It aims to let businesses and individuals transfer funds easily across the globe.
In 2016, the Royal Bank of Canada revealed that it was working with Ripple for a new trial. Their aim is to create a distributed ledger-based remittances using technology offered by Ripple. Two years later, RBC said that Ripple and XRP can save financial institutions 46% per payment.
Ripple has been making waves ever since it came into the cryptocurrency scene. In the past many years, it has become one of the most successful crypto projects. It has onboarded a lot of financial institutions onto its network and it’s just a start. Ripple has been working hard to change the financial landscape. Their technologies have the potential to transform the entire financial world.
XRP as a cryptocurrency also has immense potential. As a result, it’s value could continue to rise higher, especially in the next bull run. If you want to get involved and buy XRP, make sure to check out our exchange.