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XRP Ledger (XRPL)

The XRP Ledger, often called XRPL, is a public blockchain for sending and exchanging value. XRP is the network’s native cryptocurrency, but the XRP Ledger and XRP are not the same thing.

Last updated • 2 min read
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What is the XRP Ledger?

The XRP Ledger is a shared digital ledger. Servers maintain this ledger and verify transactions, such as payments made with XRP.

Validators are servers that work together to decide which transactions are confirmed. They do this through consensus, or agreement among participants. So the XRP Ledger doesn’t use mining or staking. Simply holding or locking up XRP doesn’t give you an extra vote in this process.

Users and organizations can also issue tokens on the XRP Ledger. The network also has a built-in decentralized exchange, where users can place offers to trade XRP and tokens.

An example of the XRP Ledger

Anna sends 10 XRP to Bas’s existing XRPL account. Once the network confirms the payment, the transfer is recorded in the shared ledger.

Anna also pays a small transaction fee in XRP. That XRP doesn’t go to validators; it is burned. If she sends XRP to the wrong address, a confirmed payment usually can’t be reversed.

Why is the XRP Ledger important in crypto?

The XRP Ledger makes it possible to send XRP directly between accounts without a central party processing every payment. That’s why XRPL often comes up in news about XRP, international payments, tokenization, and trading.

News about validators or protocol changes is about how the network works. Choosing trusted validators and having enough overlap among their trust lists are important for the network’s security and continued operation.

News about Ripple doesn’t automatically mean the XRP Ledger is changing. Also, a token on XRPL isn’t the same as XRP: its value and redeemability may depend on the issuer. And while payments may be fast, that doesn’t eliminate the price risk of XRP.

Disclaimer: This content is for informational purposes only and does not constitute financial, investment, legal, or tax advice. The information provided may be incomplete, inaccurate, or outdated and should not be relied upon as such. Nothing on this website should be considered a recommendation to buy, sell, or hold any cryptocurrency. Investing in crypto-assets involves risk of loss.