For the people who are new to the cryptocurrency system, there are several new terminologies which are needed to be explained more straightforwardly. One of such terminologies is Ripple and XRP token. In this post, we have aimed to explain everything there is to explain about Ripple and XRP tokens. Let’s get started.

First off, the basic definition of Ripple is that it is a process of instant money exchange across international borders with minimal or no transfer fees. It is designed in such a way that the users taking part in this kind of money exchange get prompt service and with no or very fewer transaction fees.


Now, let’s explain the entire process in detail so that our readers can understand everything about Ripple and XRP before trying their hands-on cryptocurrency exchanges.

Before the concept of Ripple, the money exchange used to take place in a very traditional way. The traditional way had a lot of frictions. Frictions mean a delay in transfers and added charges for international money exchange and money transfers.

For example, if person A had to send money to another person B, he needed to go to his bank, give B’s account details to the bank and initiate the transfer. Since A’s bank doesn’t have any direct ties with the person B’s bank, a mediator was required to carry on the process. This would take several days and added charges for performing international money exchange.


Also, it is not necessary that the person B’s bank had proper authorities to convert the foreign currency into the local currency. In short, there were a lot of bottlenecks traditionally on the international money transfer system.

Now, with the advent of the Ripple network, these frictions are permanently terminated. Moreover, the process would look something like this:

If person A has to send money to person B, he just has to go to his bank, which uses the Ripple network. With the use of a ripple network, person A’s bank will generate an XRP token which will symbolize the specified amount. This XRP token will directly be transferred to person B’s bank, which also uses the Ripple network.


In B’s bank, the XRP token will be converted to the local currency and will be deposited in B’s account instantly. There is no surcharge, no mediators, and no time lost. Essentially, there is no friction when you send money through a bank which uses the Ripple network, you can visit Top Crypto Brokers to read more about it.

Banks such as Euro Exim, MoneyGram, SBI, Santander, Western Union, and much more use the ripple network for cryptocurrency money transfer. Many other popular banks and money exchange units are implementing the process as you are reading this article. Even the Bank of America has said the Ripple model is an inspirational way to reduce money transfer frictions across the borders. Ripple is one of the top 3 most valuable cryptocurrencies in the world as of now, and it’s only getting bigger day by day.