XRP Ledger
The XRP Ledger (XRPL) is the public, open-source blockchain on which XRP natively exists and on which XRP and other assets are transferred and traded. It has run since 2012 and reaches agreement through its own consensus protocol rather than mining or staking.
How the ledger reaches agreement
The XRP Ledger does not use proof of work or proof of stake. Validators, servers run by companies, universities, exchanges and individuals, each trust a list of other validators, called a unique node list. In rounds lasting a few seconds, they propose and vote on which transactions to include, and a new ledger version is final once a large supermajority agrees.
Validators earn no block rewards. All 100 billion XRP were created when the ledger launched, so no new XRP is issued. A small amount of XRP is destroyed as a fee with every transaction, which makes spam costly.
Built-in features
Many functions that other chains implement through smart contracts are native features of the XRPL. It has a built-in decentralized exchange with an order book, support for issued tokens such as stablecoins, escrow, payment channels and, since 2024, automated market maker pools. That makes it focused on payments and asset transfers rather than general-purpose programs.
Ripple and XRP are not the same as the ledger
Ripple is a company that helped create the ledger, received a large share of the initial XRP and builds payment products that can use it. The ledger itself is open-source and run by independent validators, and XRP is its native asset. Confusing the three is common in news coverage.
Practical pitfalls
Every XRPL account must keep a minimum reserve of XRP that cannot be sent, so a new address needs funding before it becomes active. Exchanges often use one shared address and identify customers by a destination tag, a number added to the transfer; forgetting it can mean your deposit is not credited without a manual support request. As with any network, scam tokens with familiar names can appear on the built-in exchange.
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Frequently asked questions
Can XRP be mined?
No. All XRP was created at launch, and the ledger's consensus does not involve mining or block rewards.
Is the XRP Ledger controlled by Ripple?
Ripple contributes to development and runs validators, but the ledger is open-source and validated by many independent operators. How decentralized that makes it is debated.
What is a destination tag?
A number that identifies the recipient within a shared address, typically used by exchanges. Missing it can delay or complicate a deposit.
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