XRP

How does XRP work?

The XRP Ledger uses neither mining nor staking but its own consensus mechanismConsensus mechanismThe rules that let thousands of computers agree on a single version of a blockchain without trusting any one party.. ValidatorsValidatorA participant on a proof-of-stake network who locks up their own crypto as a stake to create and check blocks in return for rewards., which each node chooses for itself, agree on transactions every few seconds. The fee for every transaction is destroyed, and it is always paid in XRP, whatever is being sent.

All 100 billion XRP were created at the start, and no more will be created. The ledger's creators gave the company Ripple 80 billion. In December 2017, Ripple placed 55 billion in escrow, from which one billion is released each month.

XRP and Ripple

Ripple is a US company that owns a lot of XRP and uses it in its payment service, Ripple Payments. Ripple also issues the StablecoinStablecoinA cryptocurrency designed to keep a steady price, usually by tracking the US dollar or another currency. RLUSD, which runs on the XRP Ledger among other networks. The network itself has no central administrator, though, and anyone can use it.

In 2020, the US Securities and Exchange Commission (SEC) sued Ripple over its sales of XRP. The case ended in August 2025, and a judgment for a USD 125 million penalty stands.

What to keep in mind

• When you send XRP to a crypto exchange, you often need to fill in a destination tag, a number that says who the transfer is for.
• A new XRP Ledger addressWallet addressA string of letters and numbers you give out to receive crypto, much like a bank account number. must receive at least 1 XRP to be activated. That amount stays behind as a reserve.