What Is XRP?

XRP is a digital asset that runs on the XRP Ledger (XRPL), a distributed ledger built for speed and efficiency in moving value.

The founders designed it to solve a specific financial problem: international money transfers are slow, expensive, and capital-intensive.

Today, when banks send money across borders, they rely on correspondent banking networks. Funds pass through multiple intermediaries. Settlement can take days. In addition, liquidity must be pre-funded in foreign accounts.

Because of this friction, cross-border transfers often tie up capital and increase operational costs.

XRP reduces that complexity.

Instead of waiting for funds to move through layers of banks, institutions can convert one currency into XRP, transmit it across the ledger in seconds, and convert it into another currency on the receiving end. This “bridge currency” mechanism sits at the center of its design.

Unlike Bitcoin, which emerged as a decentralized alternative to traditional finance, XRP integrates directly with existing financial systems.

Who Created Ripple and XRP?

Developers introduced XRP in 2012 as a faster and more efficient alternative to Bitcoin’s energy-intensive mining system.

Among the most prominent figures behind its creation were Chris Larsen, a seasoned entrepreneur with a background in fintech, and Jed McCaleb, who was already well-known in the cryptocurrency space for founding Mt. Gox, one of the earliest Bitcoin exchanges.

Their vision was not simply to create another cryptocurrency, but to create a digital asset that could seamlessly facilitate cross-border payments and transform how money moved internationally.

The Difference Between Ripple, XRP, and XRPL

The technology they built later became the foundation for Ripple Labs.

However, it’s important to understand the separation:

• Ripple Labs is a private company that develops financial software.

• XRP is the digital asset.

• XRP Ledger (XRPL) is the blockchain network that powers transactions.

While Ripple uses XRP in products like On-Demand Liquidity (ODL), the XRP Ledger operates independently. A decentralized network of validators maintains it. Ripple does not directly control the network.

This distinction often causes confusion. Nevertheless, understanding it is essential to evaluating XRP objectively.

How XRP Works

XRP operates on a network called the XRP Ledger, built to move money quickly and efficiently across borders. Unlike cryptocurrencies such as Bitcoin or Ethereum, which rely on mining to confirm transactions, XRP takes a different approach. Its system prioritizes speed, low cost, and scalability, making it particularly useful for banks, payment providers, and anyone looking to transfer funds internationally without delays or high fees.

At the heart of XRP’s operation is the Ripple Protocol Consensus Algorithm, or RPCA. This is the mechanism that ensures the network agrees on the state of all transactions at any given moment. Instead of miners competing to solve energy-intensive puzzles, the XRP Ledger uses a network of trusted validators that continuously communicate to confirm transactions. Because consensus is reached among these validators rather than through competitive mining, transactions settle in just a few seconds, rather than minutes or hours.

High-level explanation of the Ripple Protocol Consensus Algorithm (RPCA)

The Ripple Protocol Consensus Algorithm allows the XRP Ledger to process transactions quickly and securely. Each validator keeps a copy of the ledger and periodically proposes a batch of transactions to include in the next ledger version. Other validators review these proposals and vote on which transactions should be accepted. Once a supermajority, usually around 80%  agrees, the transactions are confirmed and permanently recorded on the ledger.

This cycle repeats approximately every 3–5 seconds, allowing near-instant settlement. Because there’s no mining involved, the network avoids high energy consumption and expensive transaction fees. RPCA also protects the ledger against double-spending and malicious activity, making the network secure despite not relying on traditional mining methods.

The approach emphasizes efficiency and scalability, allowing the XRP Ledger to handle thousands of transactions per second without congestion, which is a key reason financial institutions see XRP as practical for international payments.

How transactions are validated (not mining)

When you send XRP, the transaction is broadcast to the network for validation. Validators check that the sender has enough balance, ensure the transaction isn’t a duplicate, and verify it follows the XRP Ledger’s rules. These validators then propose the transaction in a candidate ledger and share it with other validators. Through several rounds of consensus voting, the network decides which transactions are valid and adds them to the ledger.

This method finalizes transactions within seconds and keeps fees extremely low, often less than a cent, because no intensive computations or mining competitions are required. Once validated, transactions cannot be reversed, ensuring speed and reliability for cross-border payments.

XRP vs Bitcoin and Ethereum

Benefits of XRP

1.Speed

XRP settles transactions within seconds. Therefore, institutions reduce exposure to market volatility during transfers.

2. Low Transaction Costs

Fees are typically fractions of a cent. Even during congestion, costs remain predictable.

3.Energy Efficiency

Because XRP avoids mining, it consumes far less energy than Proof-of-Work networks like Bitcoin.

4. Scalability

The XRP Ledger can process thousands of transactions per second. As demand grows, the network handles volume without significant congestion.

5. Built for Financial Infrastructure

Unlike many cryptocurrencies that search for use cases after launch, XRP was built specifically for cross-border payments.

Related: How to Store, Sell Crypto and Convert It to Cash in Nigeria

How to Buy and Store XRP

1. Choose a Cryptocurrency Exchange

You can buy XRP on exchanges such as Binance, Kraken, or Coinbase. In Nigeria, platforms like Luno and Quidax may offer easier access.

2.Create and Verify Your Account

Complete identity verification to secure your account and comply with regulations.

3.Deposit Funds

Fund your account using bank transfer, card payment, or crypto deposit.

4. Buy XRP

Place a market or limit order to purchase XRP

5. Choose a Wallet

You can store XRP in:

• Hardware wallets (e.g., Ledger)

• Software wallets

• Exchange custodial wallets

6. Secure Your Wallet

Always back up your recovery phrase and never share private keys.

How to Sell XRP in Nigeria

1. Sign Up on Cubex

Start by creating a Cubex account through the web platform or mobile app. Use your email or phone number to register and complete the identity verification process. .

2. Generate Your XRP Wallet Address

Once your account is set up, head to the wallet section and select XRP. Cubex will provide a unique wallet address for your XRP deposits.

3. Send XRP to Cubex

Transfer the XRP you want to sell from your personal wallet or another exchange to your Cubex wallet. 

4. Automatic Conversion to Naira

 As soon as your XRP arrives, Cubex automatically converts it into Naira at competitive live rates. 

5. Withdraw to Your Bank Account

 After conversion, your Naira balance will be available in your Cubex account. You can withdraw directly to any Nigerian bank account. 

You can also read our complete guide on: How to Sell Crypto for Cash in Nigeria

Is XRP a Good Investment?

XRP presents a nuanced investment case.

On one hand, its speed, low fees, and real-world payment adoption provide tangible utility. Long-term investors often favor assets with practical infrastructure use. However, XRP carries risk.

Regulatory Uncertainty

The legal dispute between U.S. Securities and Exchange Commission and Ripple Labs significantly impacted market perception. Regulatory outcomes can influence accessibility and price.

Centralization Concerns

Ripple’s token holdings spark debate. Although validators operate independently, critics question governance concentration.

Market Volatility

Like most cryptocurrencies, XRP experiences sharp price swings. Ultimately, whether XRP fits your portfolio depends on your risk tolerance and investment goals.

Frequently Asked Questions (FAQ)

Is XRP the same as Ripple?

No. XRP is the cryptocurrency, while Ripple is the company that develops payment solutions using XRP.

How fast are XRP transactions?

 Transactions settle in about 3–5 seconds on the XRP Ledger.

Can XRP be used for payments?

 Yes. It was built to enable fast, low-cost cross-border money transfers.

Is XRP centralized?

The network uses independent validators, but Ripple’s token holdings and influence spark ongoing centralization debates.

Conclusion

XRP is a fast, low-cost cryptocurrency built to make cross-border payments simple and efficient. While it comes with risks like regulatory uncertainty and market volatility, its adoption by banks and payment providers shows its real-world value. Understanding how XRP works can help you navigate the crypto space