XRP Cryptocurrency Explainer

XRP is the native digital asset of the XRP Ledger, an open-source blockchain used for payments and other applications. Ripple is a company that builds products using this technology; Ripple and the XRP Ledger are not the same thing.

How XRP works

The ledger uses a consensus process rather than proof-of-work mining. XRP transfers typically settle in about three to five seconds. Settlement time is a network characteristic, not a guarantee for every payment or exchange withdrawal.

Transactions destroy a small amount of XRP as a fee to discourage spam. A standard transaction normally has a minimum cost of 10 drops, or 0.00001 XRP. Fees can increase with network load, and some transaction types require more.

Key date

The XRP Ledger launched in June 2012. Its original developers included David Schwartz, Jed McCaleb, and Arthur Britto. The company now called Ripple was formed later in 2012; the company’s history should not be confused with the ledger’s launch.

Payments and partnerships

XRP can be transferred directly and used as an intermediate asset in cross-currency payments. A company using a Ripple product does not automatically mean it uses XRP. Ripple and MoneyGram announced the end of their partnership in March 2021, so that relationship should be described historically.

Things to understand

XRP’s price can change sharply. Ripple’s holdings and influence, validator trust choices, custody, and changing rules are relevant considerations. A fast network does not remove the risk of loss or make a purchase suitable for everyone.

Before using an exchange, check whether it serves your location, supports the asset and network you need, and clearly explains fees and withdrawal requirements.

XRP explainer video: https://youtu.be/8KHfs1O1Bxg

Images:

By Ripple - https://ripple.com/, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=44260405

By Benwhale1 - Own work, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=71168436