What is Ripple (XRP)?

XRP is a digital asset built for payments. It is the native digital asset on the XRP Ledger—an open-source, permissionless, and decentralized blockchain technology that can settle transactions in 3-5 seconds.

How it Works

Unlike Bitcoin and Litecoin, which use Proof-of-Work, the XRP Ledger uses a unique Federated Consensus mechanism to validate transactions. This allows for much higher transaction throughput and lower energy consumption.

Use Cases

Ripple, the company behind XRP, focuses on using the asset to facilitate cross-border payments for financial institutions. By using XRP as a bridge currency, banks can avoid the need for pre-funded nostro accounts in foreign currencies.

Speed and Cost

XRP transactions are incredibly fast (settling in seconds) and cost a fraction of a penny, making it highly efficient for moving money around the world.