Ripple Executive Clarifies Difference Between Ripple Labs and XRP

Ripple Labs Senior Executive Officer Reece Merrick has addressed a common misconception in crypto. In an X post shared on June 5, Merrick emphasized that Ripple Labs and its associated token are not the same entity. He explained that understanding the distinction is crucial for anyone exploring blockchain technology. It could also help traders make informed decisions when considering investments in digital assets. His comment has started new conversations in the crypto community, as people continue to discuss Ripple’s role in the XRP ecosystem. Ripple Builds Blockchain Tools For Businesses In the post, Merrick explained that Ripple is a private fintech company that focuses on creating blockchain-based solutions for businesses. Financial companies or institutions mostly use these tools. The company aims to improve global payments and digital asset custody. Ripple builds software products interact with the XRP Ledger (XRPL), a decentralized blockchain network. These products often use XRP, the digital currency that powers the ledger. Merrick said this is where the confusion often starts. Many think Ripple owns or controls the XRP Ledger. However, this is not true. XRPL Is Known for Fast, Cheap Transactions The XRP Ledger is an open-source blockchain network. This means anyone can use, modify, or build on top of it. Ripple’s executive asserted that the network is not owned or run by the company or any single group. One of the XRPL’s biggest strengths is its speed, with transactions settling in three to five seconds. The network also offers low-cost fees, with each transaction costing about $0.0002. Additionally, it can handle over 1,500 transactions per second, making it great for handling large volumes. In late May, XRPL welcomed batch transactions for multiple operations . This batch transaction amendment enhances the network’s efficiency in operating and handling transaction logic. XRP Is The Native Digital Token of XRPL Merrick explained further that XRP is the digital currency created specifically for the XRP Ledger. It is the native token that helps move money across the ledger. Ripple uses XRP in some of its payment solutions. However, XRP itself is independent of Ripple. Many people believe that buying XRP means buying a share in Ripple. Merricl said this is not true. Buying XRP means users purchase a digital asset, not investing in Ripple, the company. Ripple CTO David Schwartz has also reminded people that the XRP Ledger is much more than just XRP . The technology behind the ledger can be used for other purposes, like building decentralized apps or creating new forms of digital money. Merrick’s post is helping more people understand these concepts. It encourages crypto users to look deeper into what the XRP Ledger offers, especially its speed and low cost. Others may now explore how Ripple uses blockchain technology to improve cross-border payments. The post Ripple Executive Clarifies Difference Between Ripple Labs and XRP appeared first on TheCoinrise.com .

Source: The Coin Rise