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What Is XRP? XRP Explained

Layer 1 · Founded by Chris Larsen & Jed McCaleb · Since 2012

Overview

XRP is the native token of the XRP Ledger (XRPL), a decentralized blockchain optimized for fast, low-cost cross-border payments. Created by Ripple Labs in 2012, XRP settles transactions in 3–5 seconds with fees under $0.001 and a throughput of 1,500 TPS. The SEC v. Ripple lawsuit concluded in 2024 with XRP sales to retail investors deemed not securities, a landmark ruling for the crypto industry.

Who Created XRP?

XRP was created by Chris Larsen & Jed McCaleb and launched in 2012. It is a Layer 1 cryptocurrency using Ripple Protocol Consensus Algorithm consensus.

Key Use Cases

XRP's primary use case is as a bridge currency for cross-border remittances, enabling financial institutions to move money between currencies cheaply and quickly without pre-funding correspondent bank accounts. Ripple's On-Demand Liquidity (ODL) service uses XRP to settle international payments in seconds, a direct competitor to SWIFT's 1–5 business day settlement. The XRPL also hosts tokenized real-world assets and a native DEX.

Key Features

  • +3–5 second settlement finality with fees under $0.001 — purpose-built for payments
  • +On-Demand Liquidity (ODL) already deployed with partner banks in 50+ corridors worldwide
  • +Favorable US court ruling (July 2023) — XRP retail sales not deemed securities
  • +Energy efficient — XRPL uses ~0.0079 kWh per transaction vs Bitcoin's ~707 kWh
  • +Native AMM and DEX on XRPL for token swaps without smart contract risk
  • +100 billion XRP pre-mined with no new issuance — fully diluted supply is fixed

Official Resources

Official website: https://xrpl.org

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