All about XRP

What is XRP?

XRP is a digital asset created for payments. It is the native digital asset in XRP Ledger – a decentralized, open-source, unauthorized blockchain technology that can settle transactions in 3-5 seconds.

The XRP can be shipped directly without the need for a central intermediary, making it a convenient tool for connecting two different currencies quickly and efficiently.

XRP is the native currency of the Ripple network that only exists in the Ripple system. The XRP is currently divisible to 6 decimal places, and the smallest unit is called a “drop”, with 1 million “drops” being equal to 1 XRP. 100 billion XRP were created at the beginning of Ripple, without permission to be created more in accordance with the rules of the protocol. As such, the system was designed to make XRP a scarce resource with a diminishing supply available. It does not depend on third parties to be redeemed, XRP is the only currency in the Ripple network that does not imply counterparty risk and is the only native digital resource. The other currencies in the Ripple network are debt instruments (ie liabilities) and exist in the form of balances. Users of the Ripple network do not need to use XRP as a store of value or a medium of exchange. However, each Ripple account must have a small reserve of 20 XRP ($ 6.58 on May 16, 2017). The purpose of this requirement is discussed in the anti-spam section.


Of the 100 billion created, 20 billion XRP were retained by the creators, who were also the founders of Ripple Labs. The creators gave the remaining 80% of the total to Ripple Labs, intended to finance operations. Ripple Labs also had a short offer in 2013 of less than 200 million XRP (0.2% of all XRP) through the World Community Grid. As of November 30, 2012, 7.2 billion XRP of Ripple Lab amounts were distributed, with part of the amount allocated to charities, such as the Computing for Good initiative, which started offering XRP in exchange of volunteer time on research projects. As of March 2015, 67% of Ripple Labs’ original 80% was still held by the company, with Ripple Labs stating that “we are committed to distribution strategies that we hope will result in a stable or stable XRP exchange rate. strengthening against other currencies “. The amount of XRP distributed and its movements can be tracked through the Ripple Charts website.

Like a bridge coin

One of the specific functions of XRP is as a bridge currency, which may be necessary if no direct exchange is available between two currencies at a specific time, for example, when making a transaction between two currency pairs that are rarely traded. Within the network’s currency exchange, XRP is traded freely against other currencies, and its market price fluctuates in dollars, euros, yen, bitcoins, etc. The focus of Ripple’s design is on currency exchange and a distributed RTGS, as opposed to emphasizing XRP as an alternative currency. In April 2015, Ripple Labs announced that a new feature called autobridging was added to Ripple, with the intention of making it easier for market makers to trade between rarely traded currency pairs. The feature is also intended to expose more of the network to liquidity and better FX rates.

As an anti-spam measure. When a user performs a financial transaction in a non-native currency, Ripple charges a transaction fee. The purpose of the fees is to protect against network flooding, making attacks very expensive for hackers. If Ripple were completely accessible, opponents could transmit large amounts of “ledger spam” (ie, fake accounts) and “transaction spam” (ie, fake transactions) in an attempt to overload the network. This could cause the size of the management ledger to become uncontrollable and interfere with the network’s ability to quickly resolve legitimate transactions. Thus, to get involved in the business, each Ripple account must have a small reserve of 20 XRP, and a transaction fee from .00001 XRP must be spent on each trade. This transaction fee is not charged by anyone; The XRP is destroyed and ceases to exist. The transaction fee increases if the user publishes deals at a huge rate (many thousands per minute) and resets after a period of inactivity.

Cryptocurrency Ripple (XRP) is currently the third most valuable cryptocurrency in market value, just behind Bitcoin (BTC) and Ethereum (ETH).

What is it for

Although you can buy and maintain XRP in your digital wallet, it is not designed for direct use by consumers. It is a cryptographic (token) that seeks to provide liquidity to banks and financial agents, functioning as a global settlement network.

How is XRP used?

Faster, less expensive and more scalable than any other digital asset, XRP and XRP Ledger are used to deliver innovative technology across the payment space.

Ripple is focused on building technology to help release a new utility for XRP and transform global payments. Third parties are also looking for other XRP-related use cases.
More than 100 companies worldwide have adopted the system to guarantee fast, secure and cheaper transactions. Traditional settlement systems depend on the dollar for intermediation, have high exchange and transfer rates, as well as being slow.

Ripple was not designed to be a currency, however, there are merchants who accept payment in XRP tokens because of its agility and low cost.


  • Fast
  • Payments that move in the XRP Ledger are settled in 4 seconds.
  • Distributed
  • Administered by a decentralized network of more than 150 validators worldwide.
  • Scalable
  • XRP consistently handles 1,500 transactions per second, 24 hours a day, 7 days a week, and can be scaled to handle the same throughput as Visa. *
  • Source: more than 65,000 transactions per second, as of July 15, 2019


XRP Ledger settles XRP transactions instantly without the energy costs associated with proof of work (or mining).


XRP’s seven-year track record of stable technology and governance makes it ready for institutional and business use.

In addition to allowing integration with traditional financial systems, the system created by Ripple offers security, transactions in seconds, in addition to being open-standard. This allows simple connection to the payment networks.

Many people express concerns about the future of cryptocurrencies due to attempts at regulation. In this sense, Ripple takes advantage, as it has BitLicense since 2016, authorized by the Financial Department of the State of New York.

Bitcoin differences

While Bitcoin is a digital currency intended as a means of payment for goods and services, Ripple is a settlement, currency exchange and remittance system for banks and payment networks.

Bitcoin is based on blockchain technology, while Ripple does not use blockchain, but a distributed consensus book. This network of XRP encrypted token validation servers is called XRP Ledger.

How to buy

You can buy XRP through binance, the largest cryptocurrency platform in the world.

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Unlike Bitcoin, where new coins are created as a reward for miners who use computing power to maintain the blockchain network, Ripple has created 100 billion XRP coins since its inception. These nodes that act in the validation do not receive any compensation for the work.

To date, there are 31.8 billion XRPs in circulation, although there is a defined timetable for gradual release over time. In December 2017 Ripple Labs set aside 55 billion coins from its property to reduce selling pressure, freeing up 1 billion a month, and it is up to the company to sell them or not.


The decision to approve or not approve transactions goes through a group of validators from among a list of recommended by Ripple Labs, until 80% reaches a consensus. Only then does each of these nodes calculate a new hash and compare the results with the others, and then approve the new state of the network.


As long as the company Ripple Labs acts so controlling in the list of preferred nodes (nodes) to form the consensus that validates the transactions, they must follow the criticisms of the centralization of the network.

Another problem that arises are the lawsuits that go to the courts of investors who felt injured after the ICO, the initial offer of cryptocurrencies, which falls on the company Ripple Labs. This uncertainty puts downward pressure on the XRP price.

How does XRP Ledger work?

The ledger is maintained by independent participants in a global “XRP Community”, of which Ripple is an active member.

Independent validator nodes agree on the order and validity of XRP transactions. This agreement, called consensus, serves as a final and irreversible solution. The ledger reaches consensus on all pending transactions every 3-5 seconds, at which point a new ledger is issued. Anyone can be a validator, and the validators active in the ledger today include universities, scholarships and financial institutions. There are currently 36 validators and Ripple executes 6 of them – 16%.

What is

A community driven resource for All Things XRP and XRP Ledger
Whether you are a developer developing the XRP Ledger (XRPL) or just becoming familiar with blockchain and digital assets, is your source for technical information, reference materials, tools and everything that is XRP.

XRP in the real world

XRP Uses

  • XRP is helping to solve previously unsolvable problems for people and industries worldwide and is one of the only digital assets with a commercial use case.

Business in the ledger

  • From games to web monetization, XRP and XRP Ledger are driving innovative new technology across the payment space.

Impact in the real world

With its usefulness in the real world and inherently ecological design, XRP helps ensure a more sustainable future for our planet and the global economy.

Green by Nature

XRP was designed with sustainability in mind. Unlike other proof-of-work blockchains, the XRP Ledger confirms transactions through a unique “consensus” mechanism and is one of the first truly carbon-neutral blockchains.

Explore XRP’s energy consumption compared to cash, credit cards and other popular encryptions with the Green Currency Calculator.

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