What is XRP?

XRP is a digital asset that is native to the XRP Ledger—an open-source, permission-less and decentralised blockchain technology. Created in 2012 specifically for payments, XRP can settle transactions on the ledger in 3 to 5 seconds.

A brief history of XRP

Created by US-based technology company Ripple Labs Inc., XRP is the native cryptocurrency of XRP Ledger (XRPL), a decentralised, public blockchain engineered by Jed McCaleb, Arthur Britto, and David Schwartz. The ledger was launched in June 2012 with the goal of creating a digital asset that was more sustainable and built specifically for payments. Today, XRP is one of the largest cryptocurrencies by market capitalisation.

How XRP works

XRP Ledger is a secure and decentralised Layer 1 blockchain that is designed for the efficient tokenisation and exchange of crypto-native and real-world assets. The native token of the XRP Ledger is XRP. XRP transactions are processed by a network of validators on the XRP Ledger. Since the XRPL does not use Proof of Work (PoW), no mining is required. Instead, XRPL relies on a consensus algorithm, and XRPL’s integrity is maintained by a group of trusted nodes. Any transaction needs to be verified by at least 80% of the nodes on the network to be included in the Ledger. Anyone can become a validator, and there are more than 100 nodes operated by universities, exchanges, businesses and individuals. This list of nodes is called the unique node list (UNL).

What is XRP used for?

XRP primarily facilitates transactions on the network, serves to protect the Ledger from spam, and bridges currencies in the XRP Ledger's native DEX.