XRP Ledger facts for kids
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| Other names | XRPL |
|---|---|
| Original author(s) | Jed McCaleb, Arthur Britto, David Schwartz |
| Initial release | June 2012 |
| Stable release |
2.3.0 / 2 November 2024
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| Written in | C++ |
| Operating system | Server: Linux (RHEL, CentOS, Ubuntu), Windows, macOS (development only) |
| Type | Real-time gross settlement, currency exchange, remittance |
| License | ISC license |
The XRP Ledger (often called XRPL) is a special computer system that helps people send and receive digital money very quickly. It was created in 2012 by a company called Ripple Labs. The main digital money on this system is called XRP. But it can also handle other digital things, like points you earn for flying or even mobile phone minutes!
Contents
How the XRP Ledger Started
The idea for the XRP Ledger began in 2011. Three engineers, David Schwartz, Jed McCaleb, and Arthur Britto, started talking about it. Jed McCaleb began a discussion online called "Bitcoin without mining."
This project was first known as "Ripple." The digital money used on it was called "ripples," and its short code was XRP. The way the XRP Ledger works was officially set up in 2012.
In May 2018, actor Ashton Kutcher gave $4 million in XRP to a charity supported by Ellen DeGeneres. At that time, XRP was one of the most valuable digital currencies.
Important Court Decision
On July 13, 2023, a judge named Analisa Torres made an important decision. She said that the XRP digital token itself is not a "security." This means it's not like owning a share in a company. However, she also said that how XRP is sold could sometimes be seen as selling a security.
Government Interest in XRP
In March 2025, the President of the United States, Donald Trump, announced that XRP was one of five digital assets he wanted to include in a special U.S. digital money reserve. A few days later, the White House officially shared this plan online.
How the XRP Ledger Works
The XRP Ledger uses a unique way to check and approve transactions. It's different from how many other digital currencies work. Instead of "mining" (which uses a lot of computer power) or "staking" (which involves locking up money), the XRP Ledger uses a "consensus protocol."
This means that a network of independent computers, called validators, agree on transactions. They reach an agreement very quickly, usually every 3 to 5 seconds. This makes transactions super fast! Users trust a list of these validators called the Unique Node List (UNL).
While this system is fast and secure, some people have talked about whether it's too centralized. However, experts like Mary Lacity note that the XRP Ledger uses much less electricity than systems like Bitcoin. It uses about as much power as running an email server.
Ripple Labs and XRP
It's important to know that "Ripple" and the "XRP Ledger" are not the exact same thing. The XRP Ledger is the technology, and Ripple Labs is a company that works with it.
Soon after the XRP Ledger started, Jed McCaleb, Arthur Britto, and Chris Larsen created a company called OpenCoin in September 2012. This company later changed its name to Ripple Labs, Inc.
Unlike many digital currencies that are "mined" over time, all 100 billion XRP tokens were created at the very beginning. The people who started the XRP Ledger gave 80 billion XRP to Ripple Labs. Ripple Labs still holds some of this XRP and sometimes sells it to help keep the market stable.
See also
- List of online payment service providers
- List of cryptocurrencies
- Remittance
