XRP

Created by US-based technology company Ripple Labs Inc. (Ripple Labs), XRP is the native cryptocurrency of XRP Ledger (XRPL), an open-source, decentralised public blockchain. XRP and the XRP Ledger were launched in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto as an alternative to Bitcoin, with the goal of creating a digital asset that was more environmentally sustainable and built specifically for payments. In the same year, Chris Larsen joined, and they founded the company that is today known as Ripple.

Instead of relying on miners in Proof of Work (PoW) or validators in Proof of Stake (PoS) to secure the network, XRP Ledger uses a unique consensus algorithm called XRP Ledger Consensus Protocol. In this system, a network of trusted validators (known as a Unique Node List, or UNL) works together to validate transactions and reach a consensus on the state of the ledger. Validators in XRP Ledger are not rewarded for securing the network.

The original founders pre-mined 100 billion XRP tokens when the ledger launched in 2012. This total represents all the XRP that will ever exist, as no additional tokens can be created. The founders allocated 80 billion tokens to Ripple for future operations and development, while the remaining XRP was distributed amongst themselves.

Key features include fast transactions, low transaction costs, and a decentralised ledger. XRP transactions are processed quickly, typically settling within three to five seconds, making it suitable for real-time payments. The cost of transacting with XRP is minimal, usually around $0.0002 per transaction, which enhances its appeal for financial institutions.