The Naming Confusion
Ripple and XRP have a shared history. XRP was once known as “ripples” before its current name. This has led to confusion, with some people mistakenly believing they are the same thing.
The recent debate about the naming issue started when Australian attorney Bill Morgan pointed out that the Australian Crypto Convention website incorrectly labeled XRP as Ripple.
Ripple’s Response
Ripple CTO David Schwartz explained that when they named the entities, they couldn’t have predicted the confusion it would cause in the future. However, they have tried to clarify the difference.
Nik Bougalis, the company’s former Director of Engineering, believes that Ripple’s decision to adopt the name “Ripple” for both the network and the protocol was a poor choice that has led to long-term consequences.
Distinguishing the Company and XRP
Understanding the difference between Ripple and XRP is crucial for navigating the cryptocurrency market.
- Ripple: A money transfer network designed for the financial industry.
- XRP: The native utility token of the XRP Ledger (XRPL), used for facilitating transactions on the blockchain.
Ripple’s technology is intended for financial institutions to improve payment processing and settlements, while XRP plays a more direct role in blockchain transactions.
