XRP is a token used for representing the transfer of value across the Ripple Network. The main purpose of XRP is to be a mediator for other – both cryptocurrencies and fiat – exchanges.
An interesting fact: after the transaction the amount of $0.00001 ‘disappears’ from the platform and can’t be replenished. So, with every transaction the world becomes $0.00001 poorer. It is designed that way to prevent spammer’s attacks.
Unlike Bitcoin or Ethereum, Ripple doesn’t have a BlockChain. A cryptocurrency without a BlockChain may sound pretty strange – if it doesn’t have a BlockChain, how does it verify transactions and makes sure everything is ok? For that purpose Ripple has its own patented technology: the Ripple protocol consensus algorithm (RPCA).