How It Works
The XRP Ledger uses the Ripple Protocol Consensus Algorithm (RPCA), where a network of validators must reach an 80% supermajority agreement to validate transactions. Unlike PoW or PoS, validators do not earn block rewards — they are run by financial institutions, exchanges, and independent operators motivated by the network's utility. Each account maintains a 10 XRP reserve to prevent spam. The Unique Node List (UNL) system means each node trusts a specific set of validators, creating overlapping trust webs rather than a single global consensus set. The Automated Market Maker (AMM) feature added in 2024 enables native decentralized token swaps on the ledger.
Consensus Mechanism: Ripple Protocol Consensus Algorithm
Proof of Stake consensus selects block proposers based on the amount of cryptocurrency staked as collateral. Validators risk losing their stake (slashing) if they act dishonestly, creating economic security without energy expenditure. Stake-weighted selection means larger stakers have proportionally greater influence on block production.
Key Architecture Facts
| Category | Layer 1 |
| Consensus | Ripple Protocol Consensus Algorithm |
| Launched | 2012 |
| Founder | Chris Larsen & Jed McCaleb |