Ripple (XRP) is a system of the real time gross settlements (RTGS), exchange and money transfer system. Another name is Ripple transaction protocol (RTXP), or Ripple protocol. It is built upon a distributed open Internet protocol, consensus ledger and its own currency called XRP.
In Ripple, users make payments between themselves by using cryptographically signed transactions denominated in arbitrary real-world assets (dollars, gold, airmiles etc). To this end, Ripple keeps a ledger which records debts between users that trust each other. In this way, all assets are represented as debt. When a payment is made between two users that trust each other, the balance of the mutual credit line is adjusted, subject to limits set by each user. In order to send assets between users that have not directly established a trust relationship, the system tries to find a path between the two users such that each link of the path is between two users that do have a trust relationship. All balances along the path are then adjusted simultaneously and atomically.