XRP

About XRP (XRP)

What Is XRP?

XRP is the native digital asset of the XRP Ledger (XRPL), an open-source, permissionless distributed ledger designed for fast, low-cost, cross-border value transfer.

Launched in 2012, the XRP Ledger is optimized for payments rather than general-purpose smart contracts. Transactions typically settle in 3–5 seconds, cost a fraction of a cent, and the network can process around 1,500 transactions per second.

XRP is commonly used as a bridge asset, enabling efficient exchange between different currencies without requiring pre-funded accounts in destination currencies.

XRP, XRP Ledger, Ripple: What's the Difference?

XRP The cryptocurrency used for transaction fees, anti-spam protection, and as a bridge currency.

XRP Ledger (XRPL) The decentralized, open-source ledger where XRP transactions are processed and recorded.

Ripple A private fintech company that contributed to the early development of XRPL and builds enterprise payment solutions on top of it. Ripple does not control the XRP Ledger.

Understanding this distinction is essential: XRP exists independently of Ripple as a company, even though their histories are closely linked.

Who Created the XRP Ledger?

The origins of XRP trace back to work begun in 2004 by Ryan Fugger, who developed an early digital credit system. In 2012, the project was taken forward by Jed McCaleb, Chris Larsen, and collaborators who helped launch what would become the XRP Ledger.

The original XRP supply was created at inception, and the ledger was released as open-source software. Over time, a global community of developers and validators has maintained and improved the protocol.

How Does the XRP Ledger Work?

XRPL does not use mining or Proof of Work.

Instead, it relies on the Ripple Protocol Consensus Algorithm (RPCA):

• Independent validator nodes propose transactions
• Consensus is reached when at least 80% of trusted validators agree
• Valid transactions are finalized and recorded in a new ledger version

Each server maintains a Unique Node List (UNL)—a list of validators it trusts not to act maliciously. As long as the majority of trusted validators behave honestly, the network remains secure and operational.

This design enables high throughput and low latency without energy-intensive computation.

Network Security and Fees

Security on XRPL is achieved through:

• Validator consensus rather than economic mining competition
• Deterministic finality (no probabilistic confirmations)

Transaction fees are extremely small and are destroyed, not paid to validators. This:

• Prevents spam attacks
• Gradually reduces total XRP supply over time

XRP Supply and Tokenomics

Maximum supply: 100 billion XRP (created at launch)

Circulating supply: A portion is freely circulating

Escrow system: A large amount of XRP has historically been placed into time-locked escrow, with limited monthly releases; unused amounts can be returned to escrow

There is no ongoing issuance of new XRP beyond the original supply.

What Is XRP Used For?

XRP serves several practical roles:

• Bridge currency: Facilitates fast conversion between different fiat currencies
• Cross-border payments: Enables near-instant international settlement
• Liquidity sourcing: Used in payment flows to avoid pre-funding accounts
• Network protection: Minimal XRP fees deter spam and abuse

XRP can also be transferred and held like other cryptocurrencies where supported.

XRP vs Bitcoin and Ethereum

Key differences include:

Consensus: XRPL uses validator consensus; Bitcoin uses Proof of Work; Ethereum uses Proof of Stake.

Speed: XRP settles in seconds; Bitcoin in minutes; Ethereum varies by network conditions.

Fees: XRP fees are negligible; BTC and ETH fees fluctuate based on demand.

Design goal: XRP focuses on payments and settlement; BTC on censorship-resistant value transfer; ETH on programmable applications.

These differences reflect design trade-offs, not a hierarchy of superiority.

Adoption and Enterprise Use

XRPL technology is widely associated with enterprise and institutional payment experimentation, particularly in cross-border contexts. Financial institutions and payment providers have explored ledger-based settlement to reduce costs, delays, and operational complexity.

At the same time, XRP remains a publicly traded digital asset accessible to retail and institutional market participants.

Regulatory Context

XRP has been the subject of high-profile regulatory scrutiny, particularly in the United States. Market availability, listings, and usage can vary by jurisdiction depending on local regulatory frameworks.

Users should be aware that regulatory treatment of digital assets differs globally and may evolve over time.

Where Can You Buy XRP?

XRP is available on many major cryptocurrency exchanges, subject to regional availability and compliance requirements.