Jan 21st 2023

XRP is a cryptocurrency and the native token used by Ripple. Like other cryptocurrencies in the marketplace, XRP has a currency code similar to Ethereum’s Ether (ETH).

In 2012, the team behind Ripple launched the XRP ledger, which included XRP, which would serve as the native token. The creation of XRP primarily enhances global financial transfers and the exchange of several currencies.

The initial idea behind XRP from the onset was straightforward and is described as a peer-to-peer trust network. Ripple cites XRP as a faster, cheaper, and more energy-efficient digital asset that can process transactions within seconds and consume less energy than some counterpart cryptocurrencies.

Typically, XRP is created to serve as a settlement layer facilitating the transactions with the Ripple network. It has been traded as a cryptocurrency and is available on several exchanges, including futures, options, swap exchanges, spot exchanges, custodian exchanges, and non-custodian exchanges.

• XRP is a cryptocurrency and the native token of Ripple, founded in 2011 by Jed McCaleb and Chris Larsen.
• XRP is premined and has a total supply of 100 billion tokens.
• XRP is more cost-effective, has faster transaction time, is greener, and is more scalable than bitcoin.

Although XRP is often referred to as Ripple, it’s important to know that XRP is an open-source digital asset independent of Ripple, which is a technology company. Due to its fast, efficient, reliable, carbon-neutral, and fast delivery, XRP is the technology that Ripple uses in its solutions to help customers stay compliant.

XRP operates on its decentralized, open-source blockchain known as the XRP ledger (XRPL), and transactions are facilitated by the Ripple transaction protocol (RTXP). Unlike most cryptocurrencies, XRP is premined, with a maximum token supply of 100 billion. The token’s total supply was distributed in two distinct ways:

First, 80 billion XRP tokens were allocated to Ripple, the parent company. To ensure a stable supply of XRP, the company locked 55 billion of the token in an escrow account.

Then, Ripple co-founders and the core team received the remaining 20 billion XRP.