What is XRP?
Ripple connects financial institutions, payment providers, exchanges, and corporations via RippleNet, an independent real-time gross settlement system, to provide one frictionless experience to send money globally. It is built on the most advanced blockchain technology that is scalable, secure, and interoperates different networks. Its native token XRP provides optional access to the world’s fastest and most scalable digital asset for payments. The total supply of XRP is capped at 100 billion, and its average transaction speed is 4 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 (XRPL) is the open-source distributed ledger created by Ripple. The native token of the XRP Ledger is XRP. XRP transactions are processed by a network of trusted validators on the XRP Ledger. For this, Ripple transactions are publicly recorded on its open-source distributed ledger. As it doesn’t use PoW, no mining is required in the Ripple network. XRP instead relies on a consensus algorithm, and XRPL’s integrity is maintained by a group of trusted nodes. Any Ripple 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. However, Ripple maintains a given set of trusted validators. This trusted list of nodes is called the unique node list (UNL).
What is XRP used for?
Ripple is a privately-held fintech company, and its global payment solution behind XRP is a patented payment network called Ripple Network (also known as RippleNet). RippleNet is a payment network that is built on top of Ripple’s consensus ledger, called XRP Ledger (also known as XRPL). Unlike most cryptocurrencies that cater to peer-to-peer needs, Ripple was conceived to connect banks, payment providers, and digital asset exchanges, enabling real-time settlement expeditions and lower transaction fees.
As an enthusiast with a deep understanding of blockchain technology and cryptocurrencies, particularly XRP, I can confidently shed light on the concepts mentioned in the article.
1. Ripple and RippleNet:
- Ripple is a technology company based in the United States that developed RippleNet.
- RippleNet is an independent real-time gross settlement system connecting financial institutions, payment providers, exchanges, and corporations.
- The goal is to offer a frictionless experience for global money transfers.
2. XRP Overview:
- XRP is the native token of the XRP Ledger (XRPL), which is a decentralized and public blockchain created by Ripple Labs Inc.
- XRP provides optional access to a fast and scalable digital asset for payments.
3. XRP's Technology:
- XRP Ledger is built on advanced blockchain technology that is scalable, secure, and interoperable with different networks.
- Unlike Proof of Work (PoW) used in many cryptocurrencies, XRP doesn't rely on mining. Instead, it utilizes a consensus algorithm.
4. XRP's History:
- XRP Ledger was launched in June 2012 with the intention of creating a sustainable digital asset tailored for payments.
- Notable individuals behind XRP's creation include Jed McCaleb, Arthur Britto, and David Schwartz.
5. XRP's Supply and Transaction Speed:
- The total supply of XRP is capped at 100 billion.
- XRP boasts an average transaction speed of 4 seconds, contributing to its appeal for quick and efficient global payments.
6. How XRP Works:
- XRP transactions on the XRP Ledger are processed by a network of trusted validators.
- Ripple transactions are publicly recorded on the open-source distributed ledger.
- Instead of PoW, XRP relies on a consensus algorithm. Ripple's network integrity is maintained by a group of trusted nodes, and transactions need verification by at least 80% of nodes to be included in the ledger.
- Validators play a crucial role, and Ripple maintains a set of trusted validators known as the Unique Node List (UNL).
7. XRP's Purpose:
- Ripple's global payment solution, powered by XRP and RippleNet, aims to connect banks, payment providers, and digital asset exchanges.
- The patented payment network, Ripple Network (RippleNet), facilitates real-time settlements and lowers transaction fees.
In summary, XRP serves as a key player in the cryptocurrency space, particularly in the realm of facilitating efficient and cost-effective global payments through its unique blockchain technology and Ripple's innovative solutions.
