XRP Ledger Overview
The XRP Ledger (XRPL) is a decentralized, open-source blockchain created in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto. It's the native blockchain for the XRP cryptocurrency.
Unlike Bitcoin and Ethereum, the XRP Ledger doesn't use mining or proof-of-stake. Instead, it uses a unique consensus protocol where trusted validators agree on the order and validity of transactions. This allows for:
- • Transactions settling in 3-5 seconds with finality
- • Fees under $0.01 (often fractions of a cent)
- • Minimal energy consumption (no mining)
- • 1,500+ transactions per second capacity
Built-in DEX
Trade any XRPL tokens directly on-chain without third-party exchanges. The order book is part of the protocol itself.
Token Issuance
Create custom tokens (stablecoins, CBDCs, loyalty points) with built-in compliance features like authorized trust lines.
NFTs
Native NFT support (XLS-20) with low minting costs and built-in royalties. No smart contracts needed.
Escrow
Time-locked or condition-based payments built into the protocol. Used by Ripple for XRP release schedule.
Payment Channels
Off-ledger micropayments for streaming money, gaming, and IoT. Settle thousands of payments in one transaction.
Hooks (Coming)
Smart contract-like functionality being added to XRPL. Enables complex logic without Ethereum-style gas fees.
XRP Ledger = The decentralized, open-source blockchain. Anyone can run a node, build on it, or use it.
Ripple = A private company (Ripple Labs) that builds payment solutions using the XRPL. Ripple contributes to XRPL development but doesn't control it.
XRP = The native cryptocurrency of the XRP Ledger. Ripple holds a large amount of XRP but the token exists independently on the decentralized ledger.
Think of it like: Ripple is a company that builds products on XRPL, similar to how a company might build apps on Ethereum.
2012
XRPL Launches - Created by Schwartz, McCaleb, and Britto. 100 billion XRP created at genesis.
2013
Ripple Labs Founded - Company formed to build payment products on XRPL.
2017
XRP All-Time High - Price reaches $3.84 during the crypto bull run.
2020
SEC Lawsuit - SEC sues Ripple over XRP securities status.
2022
NFT Support - XLS-20 amendment enables native NFTs on XRPL.
2023
Partial Victory - Court rules XRP sales on exchanges are not securities.
2024+
AMM & Sidechains - Automated Market Maker and EVM sidechain development.
Frequently Asked Questions
Is XRP and Ripple the same thing?
No. XRP is a cryptocurrency that runs on the XRP Ledger blockchain. Ripple (Ripple Labs) is a private company that builds payment software using XRP. Ripple owns a lot of XRP but doesn't control the XRP Ledger network. They're related but separate - like how a company might build apps using Ethereum without being Ethereum itself.
Does Ripple own XRP?
Ripple holds approximately 42 billion XRP in escrow (released gradually) plus some operational XRP. However, Ripple doesn't "own" the XRP network - it's decentralized and open-source. XRP would continue to exist even if Ripple disappeared.
What is the XRP Ledger?
The XRP Ledger (XRPL) is a decentralized, open-source blockchain created in 2012. It's designed for fast, low-cost payments and is the native blockchain for XRP cryptocurrency.
How is XRP Ledger different from Bitcoin?
Unlike Bitcoin's proof-of-work mining, XRPL uses a consensus protocol that doesn't require mining. Transactions settle in 3-5 seconds (vs 10+ minutes), fees are under $0.01 (vs $1-50+), and energy use is minimal.
Can you mine XRP?
No, XRP cannot be mined. All 100 billion XRP were created at the network's launch in 2012. Unlike Bitcoin, XRP doesn't use proof-of-work mining - it uses a unique consensus protocol where validators agree on transactions without mining rewards. The only way to get XRP is to buy it on an exchange or receive it from someone.
Is XRP Ledger decentralized?
Yes. The XRPL is run by 150+ validators worldwide. Ripple runs only ~4% of validators. Anyone can run a node, and no single entity controls the network.
What can you do on the XRP Ledger?
Beyond sending XRP: issue custom tokens, trade on the built-in DEX, create NFTs, set up escrows and payment channels, and soon use Hooks (smart contract functionality). Many CBDCs are exploring XRPL.
How do I use the XRP Ledger?
Get an XRPL wallet like Xaman (formerly XUMM), buy XRP on an exchange, and send it to your wallet. From there you can send payments, trade tokens, or explore XRPL dApps.