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What is XRP Ledger, and should you have it when investing in Ripple XRP? First of all, for true beginners, XRP is an altcoin developed by the founders of Ripple, and the XRP Ledger is an online cryptographic ledger for use in handling the transfer of XRP between users.
There is a world of confusion about the whole Ripple, Ripple Labs, Ripple XRP, XRP, XRP Ledger, and they all work or do not work together. Not surprisingly, this gets them a lot of attention on sites such as Quora, where people ask thousands of questions.
How can you go wrong with all the publicity? It’s surely good for business, so why not feed the mystery? No one at Ripple has written or revealed a tell-all history of the company, but they reveal enough to be taken seriously enough to have a competitive altcoin attached to their name.
XRP, The Altcoin
Although there is no denying that Ripple developed XRP, owning any amount of XRP does not give you any stake or ownership of Ripple, the company.
Ripple, itself, says, XRP is a digital asset independent of Ripple, and the XRP Ledger is the open-source technology behind it. The XRP Ledger was created independently from Ripple and thus, Ripple does not control or own it.
At this moment, XRP is worth $0.22 per coin. It has been on a downslope for the last several months, creeping a smidgen up now and then so as not to fall into oblivion.
Some experts had predicted a doubling of value in early November. That didn’t happen, so now word is that it is expected to rise significantly in early 2020. Knowing what we do about experts and their visions, take everything with a healthy dose of salt and keep your eyes open.
History Of XRP
In 2012, a new company called OpenCoin was formed by a team of men who wanted to get away from Bitcoin’s proof-of-work system for mining and giving coins value.
Prior to founding OpenCoin, some of the future owners of the company were working on creating the new cryptocurrency XRP and making the XRP Ledger. OpenCoin wasn’t an official company until Ryan Fugger, who owned Ripplepay, joined the team.
OpenCoin’s founders wanted a system that depends on the consensus of network members, rather than competitive mining. They believed this would keep the majority of coins from being hoarded by miners.
XRP Funds Ripple
Ripple started out rather poor. Using old style investors gave the company $9,000,000. It seems a lot, but for a company located in California, it’s not much.
Founders decided to use their XRP to fund Ripple. The company, still known as OpenCoin got 80 billion, while the founders mostly got the rest.
Now, XRP had to increase its worth in order to sustain the company. To begin the public interest in the coin, on February 20, 2013, OpenCoin started its new Bitcointalk campaign. Using “Bitcoin” as part of the name might have been deceptive, but initial joiners were promised free XRP as a reward.
Not surprisingly, fans of Bitcoin didn’t take this lightly. An official smear campaign was launched against Ripple, largely accusing the whole company of being a scam.
The negativity was unpleasant, to say the least, but the publicity went a long way, and XRP became a viable rival in the crypto market.
In October of 2013, OpenCoin announced it had changed its name to Ripple Labs.
Back To The XRP Ledger
Well, now we know the XRP Ledger was started before Fugger came along with his company, joining a team that became OpenCoin, then Ripple Labs. What now?
Ripple denies, on their website, ownership or control of XRP Ledger. They refer you to xrpl.org, where we read, Ripple stewards the development of the XRP Ledger, and advances XRP as a key contribution to the Internet of Value: a world in which money moves the way information does today.
Well, by the various definitions of the words used, you can steward and advance something without inventing or controlling it. Neither quote is contradicting the other.
What, Exactly, Is XRP Ledger?
To put the exactitude of it all in a small article is impossible. Think documenting the entirety of Julius Caesar’s life in a small comic book. It will satisfy someone with a passing interest, but any true fan will blow it away and make you look stupid.
Well, I’m not completely stupid, but if you want the full scoop you’ll need to go to the XRP Ledger website. What follows is my little snippet.
Imagine one of those little record-keeping ledgers at the back of a checkbook. Now imagine you have an electronic one for XRP. Instead of just deposit and withdraw, you also have exchange, trade, sell, buy, etc. Add the fact that as long as XRP is involved, all other world currencies can be used on it, as well.
Now add Ripple and all other people who have XRP. Okay, now add the best fact; the math is all done by the ledger. It keeps track of everything that everybody does with it forever. Add safeguards against hacking and DDoS attacks.
It’s almost – but not quite – like XRP Ledger is its own little blockchain. Everything is so neat and tidy and safe. No worries. If you have XRP and want to deal with it, the Ledger is a fantastic online tool.
Is XRP Ledger Necessary For Me?
No. Which is a good thing for XRP. I had XRP sitting in my portfolio for a while, but when I bought, held, and eventually exchanged it for Tezos, I didn’t use an account with XRP Ledger.
I’ve never had an account with XRP Ledger, and at the moment, I don’t plan to make one. The ledger isn’t a bad thing. It just isn’t necessary or mandatory for minor investments or transactions.
Each time a person with an account makes a transaction, a tiny piece of XRP is required as a fee. The amount paid for the fee is destroyed forever. Why doesn’t the ledger just stash it somewhere? What does the fee + destruction accomplish?
100 billion XRP coins were created by the Ledger and no more will ever be created! Whatever is lost or destroyed is gone forever.
This rushed article isn’t going to delve into all that, but do feel free to visit their comprehensive website to learn more. This is just a tiny answer to a big question. What is XRP Ledger? It’s a decentralized platform for holding and dealing with XRP.
Was the lead-up too long? The answer too short? Are you more confused than ever or do you know enough to move on? The crypto world is full of questions about XRP. Now you can give a few answers. Share your thoughts in the comments below!