<h3><strong>What is XRP?</strong></h3><p>XRP is the digital currency behind the XRP Ledger, a decentralized blockchain designed for fast and affordable global money transfers. It's built to make cross-border payments smoother and cheaper, especially for the financial services industry.</p><h3><strong>How Does XRP Work?</strong></h3><p>XRP runs on the XRP Ledger, which uses a unique consensus process—not Proof of Work or Proof of Stake—to validate transactions. This makes transactions lightning-fast and super affordable. Unlike some cryptocurrencies, XRP can’t be mined because all tokens were created when the network launched.</p><h3><strong>What Can XRP Be Used For?</strong></h3><p>XRP shines in cross-border payments, offering a faster and cheaper alternative to traditional banking systems. It’s also used for trading and as an exchange medium for other cryptocurrencies. XRP has strong ties to the financial industry, with partnerships involving major players like Santander and Kotak Mahindra Bank.</p><h3><strong>A Quick History of XRP</strong></h3><p>XRP was launched in 2012 by David Schwartz, Jed McCaleb, and Arthur Britto. That same year, Ripple Labs, the company behind it (initially called OpenCoin), was established. Over the years, XRP has become a big name in international payments. However, it hasn’t been without challenges, including a notable legal battle with the U.S. Securities and Exchange Commission (SEC).</p>

What makes XRP important?

### What is XRP?

XRP is the native cryptocurrency of the XRP Ledger (XRPL), a decentralised blockchain designed for fast and low-cost international transactions. It facilitates transactions on the network, protects the ledger from spam, and acts as a bridge currency in the XRP Ledger’s decentralised exchange (DEX).

### How does XRP work?

XRP operates on the XRP Ledger, a decentralised, layer-1 blockchain known for its reliability and efficiency. It uses a consensus protocol that confirms transactions in about 4 to 5 seconds, handling up to 1500 transactions per second. The consensus algorithm involves a Unique Node List (UNL) where validators check proposed transactions, ensuring agreement on the next state of the ledger. The XRP Ledger is also working to integrate smart contracts via an EVM sidechain.

### What are the potential use cases for XRP?

XRP is primarily used for:
- Fast and cost-effective cross-border payments.
- Providing liquidity in the cryptocurrency market.
- Central Bank Digital Currency (CBDC) services for managing digital currencies.
- Tokenizing real-world assets on the XRPL.
- Enabling stablecoin integration with projects like Ripple's RLUSD.

Real-world applications include banking for improved liquidity management, potential use in supply chain management, and partnerships with financial institutions and platforms like Archax for tokenizing assets.

### What is the history of XRP?

XRP was created by David Schwartz, Jed McCaleb, and Arthur Britto, who launched the XRP Ledger in June 2012. Initially named NewCoin, the company was soon renamed Ripple. The XRP Ledger was integrated into the Ripple payment protocol to enable quick international money transfers. Over the years, XRP gained recognition with partnerships like American Express and became one of the top cryptocurrencies by market capitalisation. In 2020, the XRPL Foundation was established to promote the adoption of XRP's decentralised ledger. Through ongoing development, XRP has solidified its role in the global payments ecosystem by offering a sustainable and scalable alternative to Bitcoin.

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