XRP Ledger is a system for exchanging currency. It serves as a payment settlement asset exchange and a remittance platform. In many ways, it mirrors the SWIFT model used by banks for handling international transfers of money and security. Overall, the network operates like a digital hawala-an approach where funds can be moved without physical cash traveling.

XRPL’s core idea is that money and information should move at the same pace. Using blockchain technology, XRP aims to address some pain points seen in conventional banking. For instance, transactions on the Ripple network are settled within seconds and transaction fees are very small.

The XRP token is the native currency across XRP products. It’s used within the ecosystem to enable quick currency swaps.

What are XRP key features and how does it work?

XRP runs on an open-source, peer-to-peer decentralized infrastructure designed for smooth money transfers. It supports FIAT currencies such as dollars, yen, and euros, alongside cryptocurrencies and even assets like gold. 

XRP relies on Gateways as the connection point between two parties that want to transact. The Gateway functions as the intermediary: it receives and sends currencies, keeps liquidity, and delivers payments to public addresses across the network. Any person or organization can register and operate a gateway, and each currency uses its own gateway-for example, CADBluzelle, BTCbitstamp, and USDsnapswap. 

XRP uses a consensus model involving a set of servers owned by banks. The XRP Ledger Consensus Protocol is responsible for checking account balances and carrying out transactions. This ledger approach differs from other blockchain consensus methods, including Bitcoin’s Proof-of-Work.

In practice, the ledger process works like this: users choose a validator from a fixed set of distinct nodes to review their transactions, selecting validators based on which participants they believe are least likely to act fraudulently.

 “Ledgers” are created as part of the consensus process instead of blocks, and they store information such as data that links to the previous ledger in the sequence and account totals. To complete a transaction, independent validators must reach agreement. Ledger confirmation and transaction validation typically take between three and five seconds. For a standard transaction, the minimum required cost is 0.00001 XRP, which is comparatively tiny versus the substantial cross-border fees charged by banks.

Where can you buy XRP?

XRP can be bought on the CEXs and DEXs listed here.