What is XRP?

XRP the cryptocurrency Is issued by a company called Ripple . It is important to note that while XRP is frequently called Ripple, XRP is an open-source cryptocurrency and Ripple is a cryptocurrency services and technology company. Ripple was founded in 2004 and it's original name was Ripplepay.

XRP was launched in 2012 and operates on its decentralized, open-source blockchain, the XRP Ledger (XRPL), also called Ripple protocol. According to xlrp.org the XRPL offers streamlined development, low transaction costs, high performance, and sustainability.

The XRP Ledger operates on a consensus protocol that differs from traditional proof of work (PoW) and proof of stake (PoS) mechanisms (see "What is the XRP Ledger?"). Transactions are validated by a network of independent validators known as the Unique Node List (UNL). The validators validate transactions through a vote. The transaction is validated when 80% of the validators agree. Upon agreement the validators create a new ledger instance at the end of the chain and start the process again. The consensus process takes about 4-6 seconds. The creation of new ledger instance can be observed live at livenet.xrpl.org.

The source code for the XRP Ledger and the open source code from Ripple can be found here and here, respectively.

XRP is pre-mined, with a maximum token supply of 100,000,000,000 (100 billion). Pre-mining creates a pre defined quantity of cryptocurrency before it is released to the public. The token’s total supply was originaly distributed in three ways (see “Ripple Escrows 55 Billion XRP for Supply Predictability.”):

• 80 billion XRP tokens were allocated to Ripple. To ensure a stable supply of XRP, 55 billion XRP were locked in an escrow account.
• Ripple co-founders and the core team received 20 billion XRP.
• XRP in escrow was scheduled to be released at a rate of 1 billion per month, with the original release schedule targeting 55 months.

XRP, at the date of writing this blog, is the third biggest cryptocurrency with a market capitalization of over $180,000,000,000 ($180 billions).

In summary, XRP seeks to offer:

• Speed: Transactions are processed in 4–6 seconds.
• Low Fees: Transaction costs are minimal, often measured in fractions of a cent, making it attractive for both high-volume and low-value transactions.
• Energy Efficiency: XRPL consensus protocol consumes significantly less energy than proof-of-work and proof-of-state protocols.

XRP has carved a unique niche in the cryptocurrency space by focusing on streamlining cross-border payments and working closely with financial institutions. Its speed, low cost, and scalability make it a strong contender for global payment solutions. However, ongoing regulatory challenges and competition will influence its future trajectory.