In its essence Ripple is not just a cryptocurrency (XRP), but
also an open payment network within which it is transferred. Ripple
can be described as a real-time gross settlement system (RTGS),
meaning that the transfer of funds between parties happens in
real-time basis and on a one-to-one basis without netting or
bundling with any other transactions. Having said that, the way it
works is similar to other cryptocurrencies.
It is built on the idea of a distributed ledger network that is
managed by a network of independently validating servers that are
constantly comparing transaction records. When compared with the
transaction of other cryptocurrencies, Ripple transfers are
considered to be faster and cheaper.
