XRP, the cryptocurrency developed by Ripple, was created to address several key flaws in Bitcoin, according to Ripple co-founder Chris Larsen. These flaws include slow transaction speeds, high energy consumption, and limited scalability. The XRP Ledger (XRPL), developed by engineers David Schwartz, Jed McCaleb, and Arthur Britto, was designed to offer a faster, more scalable, and sustainable digital asset for payments compared to Bitcoin. The project, initially named “Ripple,” was launched in June 2012, with the aim of creating a digital asset that could handle 1,500 transactions per second, far surpassing Bitcoin’s capacity of around seven transactions per second and Ethereum’s around 15.
Ripple Labs, originally OpenCoin, was founded shortly after the launch of XRP to develop enterprise use cases based on the technology. Under the leadership of Chris Larsen, who joined as CEO in 2012, the company focused on payments infrastructure, aiming to integrate with the existing financial system rather than replace it. XRP was designed as a bridge currency, allowing value to move between two different fiat currencies instantly without requiring pre-funded nostro accounts. Products like xRapid and later On-Demand Liquidity (ODL) leveraged XRP’s speed and low transaction cost, with over 80% of Ripple’s global remittance volume processed using ODL in the first quarter of 2025.
Beyond its use in remittances, the XRP Ledger now supports Ethereum-compatible smart contracts via its EVM sidechain and enables pilot programs for tokenized assets, stablecoins, and even central bank digital currency (CBDC). The growing investor confidence in XRP is evident from the surge in whale activity, with the number of wallets holding over 1 million XRP reaching a 12-year high, coupled with a sevenfold increase in daily active addresses.
XRP’s design addresses three key areas where it aims to improve upon Bitcoin: speed, cost, and sustainability. The cryptocurrency’s architecture allows for quicker settlement times, making it a more efficient option for cross-border payments and remittances. This efficiency is particularly appealing to financial institutions and businesses that require swift and reliable transaction processing. Additionally, XRP offers a more economical solution with lower fees, making it a viable option for smaller transactions and everyday use. This cost-effectiveness is a significant factor in XRP’s appeal to both individual users and corporate entities.
Sustainability is another area where XRP aims to outperform Bitcoin. The environmental impact of Bitcoin mining has been a contentious issue, with critics pointing to the high energy consumption required to maintain the network. XRP, however, uses a different consensus mechanism that is less energy-intensive, making it a more environmentally friendly alternative. This focus on sustainability aligns with the growing global emphasis on reducing carbon footprints and promoting eco-friendly technologies.
The statement by Chris Larsen has brought renewed attention to the ongoing debate about the strengths and weaknesses of different cryptocurrencies. While Bitcoin remains the most well-known and widely adopted digital currency, its limitations in terms of speed, cost, and sustainability have led to the development of alternative solutions like XRP. The cryptocurrency market is dynamic, with new projects and technologies continually emerging to address existing challenges and meet the evolving needs of users. XRP’s focus on solving real-world problems, such as those faced by paying customers, sets it apart from other cryptocurrencies that are still in the development or refinement phase. This practical application of XRP’s technology has already resulted in tangible benefits for users, further solidifying its position as a viable alternative to Bitcoin. As the cryptocurrency landscape continues to evolve, the debate about the relative merits of different digital currencies is likely to persist, with each new development shaping the future of the industry.
