#BTCvsETH What is XRP?
XRP is a cryptocurrency created by the company Ripple Labs with the aim of facilitating fast, economical, and secure international payments. Unlike many cryptocurrencies that operate on completely decentralized networks like Bitcoin or Ethereum, XRP operates on a more centralized system, focused on collaborating with traditional financial institutions such as banks and payment providers.
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Key Features of XRP
Speed: Transactions on the XRP Ledger network are confirmed in 3 to 5 seconds, much faster than Bitcoin or Ethereum.
Low Fees: Transaction fees are minimal, making it attractive for cross-border money transfers.
Scalability: XRP can process up to 1,500 transactions per second (tps), compared to Bitcoin's 7.
Energy Efficient: It does not use mining; it employs a unique consensus that consumes much less energy.
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Ripple vs. XRP
Although often used synonymously, Ripple is the company, and XRP is the token used as a bridge for making transfers within the RippleNet system. This network is designed to connect banks, payment providers, and exchanges.
