What is XRP?
XRP is a cryptocurrency created by Ripple labs to facilitate immediate and trusted payments to begin with.
It’s important to understand the difference between xrp ripple net and ripple.
xrp is the currency that runs as digital payment on a network called ripplenet.
Ripplenet is a real-time gross settlement rtgs that aims to enable instant monetary transactions globally.
The organization that runs ripple net is called ripple, ripple net uses a distributed ledger database called XRP Ledger.
The xrp ledger is open source and is not based on blockchain but rather distributed ledger database over network.
How does XRP Work?
XRP was created by Ripple to be a Fast, Cost-Effective and Scalable alternative to both other digital assets and existing monetary payment platforms like swift.
The xrp ledger processes transactions roughly every three to five seconds using proof of consensus.
This means that whenever independent validator nodes come to a consensus on both the order and validity of xrp transactions.
Anyone can be a ripple validator the list is currently made up of ripple along with universities, financial institutions and others.
Ripple net’s ledger is maintained by the global xrp community with Ripple the company as an active member.
What’s special about XRP?
With the launch of xrp ripple aim to overcome the slow transactions get with other cryptocurrency,
The typical 10 minute time to create a new block and spike to an hour for some bitcoin transactions to complete depending on network congestion.
While ethereum is generally faster with an average of around 15 seconds.
The gas fee on the ethereum network is quite costly.
XRP settles in less than four seconds with a network fee that’s just fractions of a cent.
XRP Explanation
xrp is a digital asset that’s native to the xrp ledger an open source permissionless and decentralized blockchain technology
Created in 2012 specifically for payments, xrp can settle transactions on the ledger in three to five seconds.
It was built to be a better bitcoin faster and cheaper than any other digital asset.
It is environmentally sustainable and has negligible energy consumption.
Bitcoin uses point three percent of global energy consumption to mine bitcoins.
There’s a finite supply of xrp.
XRP can be sent directly without needing a central intermediary making it a convenient instrument in bridging two different currencies quickly and efficiently.
It is freely exchanged on the open market and used in real world for enabling cross-border payments and micro transactions.
Unlike bitcoin there is a finite amount of xrp, all xrp is already in existence today 100 billion in total and there will be no more xrp ever created
How does the XRP Ledger work?
The xrp ledger is an open source technology on which anyone can build.
The xrp ledger is maintained by a global xrp community a diverse set of participants composed
of software engineers, server operators and validators.
The xrp ledger uses a consensus protocol in which validators come to an agreement on the order of xrp transactions every three to five seconds
This agreement serves as the final and irreversible settlement transactions are executed in a deterministic order to prevent double spending and malicious activity
Unlike other blockchains transaction fees are destroyed as part of transaction execution.
The xrp ledger adjusts fees in nearly real time to respond to network conditions.
With the twin goals of maximizing transaction throughput while keeping transaction fees as low as possible.
All servers in the network process each transaction according to the same rules and any transaction that follows the protocol is confirmed as soon as the validators reach a quorum.
Now anyone can operate a validator. Currently there are over 150 validators that are active on the ledger and they are operated by universities, exchanges, businesses and individuals.
The xrp ledger explorer shows real time transactions on the xrp ledger using the cryptocurrency xrp.
All transactions are being validated through all nodes and all of this is working simultaneously now whenever send xrp to another wallet.
It’s going to get there in three to five seconds and always remember this when send xrp to another wallet.
It is final there is no way can reverse the transaction
Whenever sending xrp to a cold hardware wallet to another exchange to an individual make sure that the addresses that are put in to ‘send to’ are correct.
Today the company uses XRP and the XRP Ledger for liquidity management for its cross-border payment business.
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