Ripple is both a platform used for peer-to-peer transfers (RippleNet) and a digital currency (ripple XRP).
The Ripple (XRP) token itself can also be used on the platform and is interchangeable with any currency or digital asset.
However, the use of XRP is independent of the ripple network. One party does not actually need XRP to transfer the currency.
Therefore, the value of ripple does not lie in the XRP token, but in the network itself and its ability to move assets quickly around the world.
XRP uses Blockchain algorithm technology, similar to Bitcoin, to help settle financial transactions between banks more quickly.
Surely when learning about XRP, many people will wonder if XRP will become a competitor to Bitcoin? The answer here is “no”. Because these two coins work in two completely different ways.
XRP is designed for seamless, fast money transfer no matter it is any country’s currency: USD, British Pound, Euro or even Bitcoin…
Bitcoin is designed to be a means of payment; towards becoming a global currency.
For more details, check below infographic from Visual.ly
From Visually.