If you have been paying attention to
the cryptocurrency world for the past couple of months or years then
you do not need anyone telling you that Ripple XRP has been
receiving a lot of attention. Some of it good and some of it bad.
Whatever the situation is, there is no denying that the company and
its prolific currency are making splashes on the front pages. It
probably doesnít even surprise you to see that they are back at it
again. However, this time the news might be extra troubling for some
individuals. It seems that Ripple is separating itself from XRP.
What does this mean for the future of the company and how could it
play out with investors going forward? Two excellent questions that
a lot of interested parties are asking.
An Understanding Of Ripple
The funny thing is, XRP and Ripple
have always been separate entities. Most people donít understand
this and this has brought more than its fair share of confusion to
the industry. That being said, to truly understand what is going on
here with the split, you need to understand how Ripple and XRP
differ. The first that you really need to know is that Ripple is the
name of the company that created XRP. Ripple is based out of San
Francisco, where they are a startup company. The company Ripple
develops software for banking and other
financial institutions. Their software is specifically designed
to help these institutions facilitate faster, more secure global
transactions. They offer a platform that is without a doubt one of
the most successful and efficient when it comes to cross-border
payments. The company was founded back in 2015 and used to be known
as OpenCoin. So, there you have it, Ripple is a company, not a
currency or platform.
An Understanding Of XRP
Anyone that is familiar with
Prediction probably already knows that XRP is the actual digital
currency that is used to facilitate transactions on the Ripple
Network. So, in short, XRP is pretty much the same thing as Bitcoin.
If you wanted to buy or
invest in a cryptocurrency, you would actually be investing in
XRP. You could exchange your current currency for XRP, not Ripple.
All that aside, it is the XRP ledger that makes all of this
possible. The XRP Ledger is the technology behind the cryptocurrency.
It is the technology that acts as the blockchain in which the token
resides. XRP is different than that of most cryptocurrencies because
it acts as a bridge between different currencies as well as a source
Why The Split
Back to the main topic at hand. If you
have been paying attention to the latest news then you know that
there are announcements of Ripple separating for XRP. Over the past
couple of months Ripple, the company has been under a lot of
scrutinies for owing the biggest portion of XRP. Most people are
attracted to XRP and other digital tokens because it offers the
promise of decentralization, which means that there is no one entity
controlling the token. If Ripple owns most of the token then there
is fear that they wield too much power over it, which eliminates the
decentralization potential. And, this is why Ripple is willing to
sell its majority shares and step away. They want their customers to
know that they want the best for the token, and they are willing to
take whatever steps needed to see that it grows and flourishes.