What is XRP Ledger (XRPL)



XRP Ledger (XRPL) is an open blockchain created by three developers aiming to provide high speed and energy efficiency. Launched in 2012, this decentralized blockchain has been supporting developers and users for over a decade. The XRPL ecosystem serves various purposes, including micropayments, DeFi, and potentially NFTs in the future.

How XRPL works

XRPL operates using a unique consensus mechanism called Federated Consensus, distinguishing itself from Bitcoin and Ethereum.

This mechanism involves appointed servers, or validators, reaching consensus on the sequence and outcomes of XRP transactions. All servers in the network operate under the same rules, and any transaction that adheres to the protocol is promptly confirmed. All transactions are public and viewable, allowing any user to become a validator. Currently, there are over 150 validators worldwide, including universities, exchanges, companies, and individuals. XRPL has been operational continuously since early 2013, having processed billions of transactions during this time.

Thanks to the Federated Consensus mechanism, XRPL is capable of handling over 1500 transactions per second with confirmation times of 3-5 seconds. The network attracts users with its low fees (usually less than a cent) and fair transaction processing, where no user can prioritize transactions. All validated transactions are processed without a single point of failure since no participant holds decisive influence over the system.

XRPL for developers

For developers, XRPL's order book provides extensive programming opportunities in various languages such as Python, Java, and JavaScript. This blockchain caters to independent developers as well as companies with diverse tasks. The official XRPL website offers numerous educational resources on programming languages, app development, account management, and more.

Beyond its primary token XRP, XRP Ledger is utilized for developing solutions aimed at enhancing efficiency, including monetary transfers and asset tokenization. Presently, XRPL is applied in five major domains: payments, tokenization, DeFi, Central Bank Digital Currencies (CBDCs), and stablecoins.


The XRP Ledger enables swift and immediate asset transactions worldwide, accommodating treasury payments, salary distributions, and various global transfers. For example, RippleNet serves as the infrastructure for international payments across a decentralized network of banks and payment systems linked to the XRP Ledger. Individuals can also establish an XRP wallet, such as Xumm, to engage in transactions using XRP—an adaptable asset designed for cost-effective global payments.


XRP Ledger allows the tokenization of various asset types, including fungible tokens, stablecoins, and central bank digital currencies (CBDCs). As of May 2022, over 5400 different currencies have been issued and traded on XRPL. This signifies the platform's capability to represent a wide range of assets in digital form on its blockchain.


Access to financial products and services is provided through the decentralized exchange on the XRP Ledger (DEX), integrated into the protocol and employing a centralized order book model for trading digital assets. Users can interact with DEX through order book interfaces like Sologenic and trade directly on the XRP Ledger. This enables participation in decentralized financial operations and the utilization of various financial instruments based on this platform.


XRP Ledger offers the capability to tokenize central bank digital currencies (CBDCs). This function allows central banks to create digital versions of their currencies for secure and stable interactions with other payment systems. CBDC tokenization on the XRPL platform provides potential for central banks in the digital ecosystem, enabling them to explore new methods of exchange and interaction with their currencies based on blockchain technologies and decentralized systems.


Financial institutions have the ability to issue stablecoins on the XRP Ledger. Stablecoins, digital assets pegged to the value of fiat currencies or other assets, can be created on the XRPL platform, offering a tool for institutions to issue stable digital assets. These stablecoins can be used as a medium of exchange or value storage on the XRP Ledger.

What makes XRPL unique

The uniqueness of XRPL lies not only in its speed, low cost, and reliability but also in its energy efficiency. Each transaction of the native coin XRP consumes only 0.0079 kWh, making this network particularly efficient compared to other blockchain networks. This significantly reduces energy consumption per operation, which is crucial in the context of ecological sustainability and the energy efficiency of blockchain technologies.

What is XRP

XRP is the internal digital asset of the XRP Ledger blockchain. Any holder of a digital wallet with internet access can receive, store, and send XRP tokens. It is also applicable for international payments, conducting transactions on the decentralized exchange XRPL (DEX), and purchasing NFTs.


For transactions, users can set up an XRP wallet through various wallet services. Sending and receiving XRP is instant and accessible globally within seconds from any part of the world. The fee for transferring XRP is minimal, making this cryptocurrency attractive and accessible to a wide range of users.

DeFi Transactions

XRPL has its own decentralized exchange (DEX), providing the opportunity to engage in DeFi operations. One of DEX's key functions is the exchange of various digital assets for any user. Developers like Sologenic and Gatehub have created order book interfaces that enable XRP wallet connections and trading. The exchange offers a wide array of XRPL assets in wrapped or native forms for trading.


With the implementation of XLS-20 proposal on the main XRP Ledger blockchain, all fundamental NFT capabilities will be introduced: the ability to create tokens, trade and destroy them, along with additional features such as automated author royalties and shared asset ownership. This means users will be able to fully engage in creating, purchasing, selling, and exchanging NFTs across various platforms, leveraging the capabilities of the XRPL blockchain.


Thanks to its energy-efficient protocol and user-friendly development environment, XRPL continues to expand transaction volumes and develop applications on its platform. This blockchain can be viewed as a key component in facilitating international payments for banks, institutions, and companies.