XRP

What Is XRP (XRP) ?

XRP is the native token of the XRP Ledger, a blockchain network engineered by Jed McCaleb, Arthur Britto, and David Schwartz. It was originally designed to facilitate fast, efficient transactions on the Ripple payment network. XRP can be used for cross-border payments and currency exchanges. XRP uses a consensus protocol that relies on a network of validators rather than mining to process transactions. This allows faster transaction times than mining-based cryptocurrencies like Bitcoin.

XRP is one of the top cryptocurrencies by market capitalization, though its price has been volatile amid the ongoing SEC lawsuit. It has various real-world use cases in international payments and partnerships with financial institutions.

History of XRP (XRP)

History

• 2011 - Jed McCaleb, Arthur Britto and David Schwartz begin developing the XRP Ledger.
• 2012 - The XRP Ledger goes live and launches its native cryptocurrency, XRP. 80% of the initial supply is given to OpenCoin, later renamed Ripple Labs.
• 2013 - OpenCoin officially launches XRP.
• 2016 - Ripple reaches an agreement with Jed McCaleb to restrict the dumping of his XRP holdings.
• 2017 - Ripple places 55 billion XRP into escrow to control the supply and prevent dilution.
• 2020 - The SEC files a lawsuit against Ripple alleging unregistered securities offerings of XRP.
• 2022 - Final legal briefs filed in the SEC vs Ripple case as it heads towards a ruling.
• 2023 - Judge rules XRP itself is not a security in a partial summary judgment in favor of Ripple.

How Does XRP (XRP) Work?

XRP Ledger：The XRP Ledger is an open-source, decentralized cryptographic ledger powered by a network of peer-to-peer servers. It processes and records transactions on an immutable distributed database known as the ledger. The XRP Ledger uses a consensus protocol called the XRP Ledger Consensus Protocol (XLCP) to validate transactions every 3-5 seconds. Validated transactions are recorded in bundles known as ledgers, with each ledger cryptographically linked to the previous one in an ongoing chain.The ledgers contain accounts, settings, transaction history, and a record of all XRP transactions. The native cryptocurrency of the ledger is XRP, which is used to pay transaction fees and as a bridge currency. The ledger is managed by independent validating servers that constantly compare transaction records. Transactions are validated when a minimum of 80% of servers agree on their order and validity to avoid double spending. Anyone can run a validating server to participate in the consensus process.

Usecase：The XRP Ledger provides tools for payments, tokenization, and decentralized finance. For payments, it offers fast, low-cost peer-to-peer transactions that eliminate the need for third parties. Users can also restrict deposits to comply with regulations. Smart contracts execute agreements between parties based on pre-set conditions.For tokenization, the XRP Ledger enables issuing stablecoins backed by assets outside the network as well as native support for creating, selling, and transferring NFTs. Stablecoin issuers can earn revenue through withdrawal fees, transfer fees, interest, and exchange trading. NFT creators can benefit from built-in royalties.The decentralized exchange in the XRP Ledger facilitates trading of XRP and tokens. This exchange provides the liquidity necessary for cross-currency payments. The XRP Ledger also has tools for algorithmic trading to take advantage of arbitrage opportunities. Overall, the XRP Ledger aims to enable fast, secure financial transactions without centralized control.

Tokenomics

What Is XRP Used For ？

The main utility of the XRP token is to provide liquidity for transactions on the Ripple network. XRP allows financial institutions to source liquidity on-demand and in real-time without needing to pre-fund accounts. XRP is used as a "bridge currency" that enables faster and cheaper transactions between two fiat currencies. XRP transactions take just 3 seconds and cost fractions of a penny in fees. For developers, XRP can be used to pay transaction costs and fees on the XRP Ledger. The token also facilitates interoperability between different blockchains through proposed cross-chain bridge standards. Overall, XRP's utility stems from its ability to provide fast, cheap liquidity for payments and transactions.

Token Distribution

Total Supply：When the XRP Ledger began, 100 billion XRP were created, with no more XRP ever to be created.

Initial Distribution:Out of the initial 100 billion: 80 billion XRP were distributed to Ripple Labs (the creators of the XRP Ledger), 19 billion XRP went to the founders of Ripple Labs, and 1 billion XRP was donated to support related causes.

Further DistributionRipple Labs controls the distribution of the 80 billion XRP it owns. This supply is released periodically from an escrow account. Ripple Labs has a strategy of selling up to 1 billion XRP per month from its escrow holdings. The proceeds are used to fund Ripple's operations and ecosystem initiatives. As of 2022, about 48 billion XRP are in circulation. Ripple Labs still holds around 42 billion XRP in escrow.Ripple Labs seeks to release XRP in a controlled, prudent manner, while decreasing its holdings as a percentage of total supply over time. This distribution approach is designed to incentivize long-term health and stability of the XRP market

Why Is XRP (XRP) Valuable?

• Speed - XRP transactions settle in 3-5 seconds, making it much faster than most other major cryptocurrencies like Bitcoin and Ethereum. This speed makes it attractive for real-time payments and international money transfers.
• Scalability - The XRP ledger can handle 1,500 transactions per second, making it highly scalable compared to other cryptos. This allows it to potentially handle high transaction volumes with fast settlement times.
• Adoption - Ripple, the company behind XRP, has formed partnerships with over 300 banks, financial institutions and payment providers to use XRP and the RippleNet platform. Widespread adoption for international payments gives XRP practical utility and value.
• Finite Supply - The total supply of XRP is 100 billion tokens, with around 48 billion currently in circulation. There is no mining like with Bitcoin, so the finite supply helps support XRP's valuation.
• Liquidity - XRP acts as a bridge currency and can be traded across currency pairs. Having high liquidity and trading volume also contributes to XRP's market value.
• Use Cases - In addition to international payments, XRP is positioned for additional use cases like NFTs, smart contracts, and as a medium of exchange for central bank digital currencies. Expanding functionality increases its utility.