What is Ripple (XRP)?
XRP is a crypto asset that runs on the open-source XRP Ledger blockchain, built specifically for cross-border money transfers. The name often confused with it — Ripple — belongs to the company that uses this technology to serve banks and payment providers. Developed in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto, the XRP Ledger took inspiration from Bitcoin but chose a mining-free consensus model instead.
How does the XRP network confirm transactions?
The XRP Ledger uses a consensus protocol based on agreement among trusted validators, not proof-of-work or proof-of-stake. Each node relies on a Unique Node List (UNL) — a set of validators it considers trustworthy. Once these validators reach agreement on a transaction's validity, it achieves finality within 3 to 5 seconds.
Because there is no mining, energy consumption is extremely low and the network can handle a high volume of transactions. The fee per transaction is a fraction of a cent.
What is XRP used for?
XRP's primary role is serving as a bridge asset between different currencies. In traditional banking, cross-border transfers require pre-funded accounts at correspondent banks (nostro/vostro) and can take days to settle. With XRP, one currency can be converted into XRP and then into the destination currency within seconds — providing on-demand liquidity and cutting costs.
Transaction fees on the network are paid in XRP and permanently burned. The XRP Ledger also features a built-in decentralized exchange (DEX), available since launch, allowing direct asset swaps. In recent years, the Ripple company has expanded the ecosystem with additional layers such as the RLUSD stablecoin and institutional custody services.
Why is XRP's supply structure different?
The entire 100 billion XRP were created at the network's inception; no new XRP can ever be minted. Transaction fee burning slowly reduces the total supply over time. Ripple holds a large share of XRP locked in on-chain escrow accounts and follows a controlled monthly release schedule — any unused portion gets re-locked. While this mechanism brings transparency to the supply schedule, the fact that a single entity holds such a large stake remains a structural debate.
