Ripple XRP

Ripple (XRP) is closely associated with the XRP Ledger (XRPL), an open-source Layer 1 blockchain launched in June 2012 for fast payments, asset transfers, tokenization and financial applications. XRP is the native digital asset of XRPL, while Ripple is a separate technology company that develops products using XRP, XRPL and other digital assets.

Development of the XRP Ledger began in 2011 when David Schwartz, Jed McCaleb and Arthur Britto set out to create a digital payment network that could reach agreement without energy-intensive cryptocurrency mining. XRPL launched in June 2012, and the company now known as Ripple was formed later that year.

The XRP Ledger does not use Proof of Work or Proof of Stake. Instead, independent servers and validators participate in the XRP Ledger Consensus Protocol, exchanging proposals until a supermajority agrees on the transactions and resulting ledger state. Validated transactions become final within several seconds.

XRP functions as the native asset of the network and can be used for payments, transaction fees and as a bridge asset between currencies and tokens. A total of 100 billion XRP was created when the ledger began, and additional XRP cannot be minted. Small amounts of XRP are permanently destroyed through transaction fees, causing the available supply to decline gradually over time.

Beyond XRP transfers, XRPL includes protocol-level functionality for issuing fungible tokens and NFTs, a native decentralized exchange, Automated Market Makers, escrow, payment channels and other tools designed for financial applications. The ledger has been used for payments, liquidity, tokenized assets and real-world asset infrastructure.

Ripple remains one of the ecosystem's most prominent companies and holds a significant amount of XRP, much of which is subject to on-ledger escrow. However, Ripple, XRP and the XRP Ledger are distinct: Ripple is a technology company, XRP is the native cryptocurrency, and XRPL is the decentralized blockchain network on which XRP operates.