Ripple

Ripple is a term with multiple meanings in science and finance. In physics, a ripple is a small wave that travels across a surface after a disturbance, most commonly on water. Ripples form when a surface is perturbed by drops, wind, or objects passing through, and their behavior is governed by gravity and surface tension. At short wavelengths, capillary forces dominate and create fine ripples; at longer wavelengths, gravity governs the wave motion. Ripples can also occur in other media where disturbances propagate as surface perturbations.

In finance and technology, Ripple refers to the company behind RippleNet, a payment network designed for real-time cross-border transactions. The company began as Ripple Labs, later rebranding to Ripple, and operates as Ripple, Inc. The network uses a digital asset named XRP and a protocol intended to enable faster settlement and improved liquidity. XRP has been used as a bridge currency in some transaction flows, but its use varies among financial institutions and regulatory environments.

Ripple Protocol and RippleNet implement the Ripple Protocol Consensus Algorithm, a validator-based system that does not rely on traditional proof-of-work mining. Transactions are validated by a set of trusted validators and recorded on a shared ledger. RippleNet aims to provide near-instant settlement, lower liquidity costs, and easier interoperability for banks and payment providers, with XRP available for on-demand liquidity in suitable flows.

Regulatory attention surrounds XRP and Ripple’s business. The U.S. Securities and Exchange Commission filed a lawsuit in 2020 alleging unregistered securities offerings, and subsequent developments have influenced market access and compliance considerations in different jurisdictions. As regulatory perspectives continue to evolve, participants should review current guidance when engaging with Ripple-related products.