What is XRP?
XRP is a digital asset of the XRP Ledger, developed for instant international settlements. The main idea is to replace slow and expensive correspondent transfers between banks with fast liquidity exchange through an intermediate asset.
How it works
The network does not use mining: transactions are confirmed by consensus of trusted validators, so a transfer takes a few seconds and the fee is a fraction of a cent. The entire volume of coins was issued at network launch, new XRP are not created, and a small portion is burned with each transaction.
Pros and cons
- Pros: high speed and low cost of transfers, energy efficiency, focus on institutional payments.
- Cons: significant share of coins held by project-related entities, history of regulatory disputes, volatility.