What is XRP?
XRP is a digital asset native to the XRP Ledger, which is an open-source, decentralized blockchain. It was created in 2012 with the specific purpose of facilitating payments and can settle transactions in 3 to 5 seconds.
A Brief History of XRP
XRP is the native cryptocurrency of the XRP Ledger (XRPL), a public and decentralized blockchain designed by Jed McCaleb, Arthur Britto, and David Schwartz. The ledger was launched in June 2012 with the goal of being a more sustainable digital asset built specifically for payments. Today, XRP is one of the largest cryptocurrencies by market capitalization.
How XRP Works
The XRP Ledger is a Layer 1 blockchain optimized for the efficient tokenization and exchange of both crypto-native and real-world assets. The network processes XRP transactions using a consensus algorithm, rather than the energy-intensive Proof of Work (PoW) used by Bitcoin. This means that XRP does not require mining.
The integrity of the XRPL is maintained by a group of trusted nodes, known as the Unique Node List (UNL). To be included in the ledger, a transaction must be verified by at least 80% of the nodes on the network. Anyone can become a validator, and there are over 100 nodes operated by various universities, exchanges, businesses, and individuals.
What is XRP Used For?
XRP's primary uses are to facilitate transactions on the XRP Ledger, serve as a bridge currency for different currencies within the XRPL's native decentralized exchange (DEX), and protect the ledger from spam. It is particularly known for its fast transaction times and low fees, making it an attractive option for cross-border payments and remittances.