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The Separation Of Ripple And XRP: Why It Happened?



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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 Ripple Price 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 of liquidity.



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.