XRP is a digital currency created by Ripple Labs to facilitate fast, cost-effective international payments and financial transactions. Unlike many cryptocurrencies, XRP operates on the Ripple network, which uses a consensus algorithm rather than traditional mining to validate transactions. This allows XRP to process transactions in seconds with minimal fees, making it an attractive solution for cross-border payments and remittances. XRP aims to bridge different currencies and streamline global money transfers by providing liquidity and reducing reliance on traditional banking intermediaries.