Abstract

XRP Ledger (XRPL) is an open source platform with fast transaction throughput of 1,500 transactions per second and low transaction fees. Its energy consumption per transaction makes it one of the more sustainable projects in the blockchain industry. XRPL provides various services and use cases related to payments and financial transactions.

Introduction

XRP Ledger (XRPL) is a decentralized public area Blockchain, built by three developers who were looking for a faster and more energy-efficient blockchain. Launched in 2012 and supporting developers and users for over a decade, the XRPL ecosystem now has a wide range of applications including micropayments, decentralized finance (DeFi), and, soon, NFTs.

How does XRPL work?

Unlike Bitcoin or Ethereum, XRPL uses a unique alliance consensus mechanism as its way of verifying transactions.

Transactions are confirmed in XRPL through a consensus protocol, where designated independent servers called validators agree on the order and outcome of XRP transactions protocol. All servers in the network process every transaction according to the same rules, and any transaction that follows the protocol is immediately confirmed. All transactions are open and transparent, and anyone can become a validator. Currently, there are more than 150 validators on the ledger, operated by universities, trading platforms, businesses and individuals around the world. XRPL has been operating continuously since January 2013 and has completed billions of transactions.

Through the alliance consensus mechanism, XRPL can support more than 1,500 transactions per second (TPS), with a confirmation speed of 3 to 5 seconds. Users also enjoy low transaction fees (often less than a cent) and fairness advantages, meaning no single participant can decide which transactions take priority. All verified transactions can be processed without a single point of failure, as individual participants cannot make decisions independently.

XRPL for developers

The ledger provides powerful utility and flexibility to developers, who can write code using Python, Java and JavaScript languages. XRPL is suitable for any independent developer or enterprise that wants to build a variety of use cases. On the XRPL website, developers can access different tutorials to help them get started using different coding languages, build apps, manage accounts, etc.

In addition to its native token XRP, developers are using XRP ledgers to create solutions to inefficiencies such as remittances and asset tokenization solution to the problem. Currently, the five main applications of the XRP ledger are payments, tokenization, decentralized finance (DeFi), CBDC and stablecoins.

Payment

Use With the XRP ledger, assets can be transferred globally, enabling instant transfers of remittances, treasury payments, payroll and other cross-border payments. For example, RippleNet powers cross-border payments through a decentralized network of banks and payment providers using the XRP ledger. Users can also set up an XRP wallet, such as Xumm, in order to trade XRP, a neutral bridge asset that optimizes global payments with low fees.

Tokenization

Any type of asset can be tokenized on the XRP ledger, including fungible tokens, stablecoins, NFTs and central bank digital currencies (CBDC). As of May 2022, more than 5,400 currencies have been issued and traded in XRPL.

Decentralized Finance

Financial products and services can be accessed through the XRP Ledger’s decentralized exchange (DEX). The decentralized exchange platform is native to the protocol and uses a central limit order book model to trade digital assets. Users can access the decentralized trading platform through various order book interfaces, such as Sologenic, to trade directly in the XRP ledger.

CBDC

XRP Ledger supports CBDC Tokenization. With this functionality, central banks can interoperate with other payment systems sustainably and securely.

Stablecoin

Financial institutions can issue stablecoins on the XRP ledger.

What is unique about XRPL?

In addition to being fast, affordable and reliable, XRPL is also energy efficient. Each transaction of its native token, XRP, consumes only 0.0079kWh, making it much more efficient than other networks.

What is XRP?

XRP is a digital asset native to the XRP ledger. Anyone with a digital wallet and an internet connection can receive, hold and send XRP tokens. Users can use XRP to send global payments, trade in the XRPL decentralized exchange (DEX), and purchase NFTs.

Small payment

Any user can set up an XRP wallet from various wallet providers to start trading. In just seconds, you can send XRP to or receive XRP from anywhere in the world. Senders of XRP only pay less than one cent in transaction fees, making the cost almost negligible, making it an affordable solution for users.

Decentralized Finance (DeFi) Transaction

XRPL has a native decentralized exchange platform (DEX) that allows users to participate in decentralized finance (DeFi) transactions. Trading is a popular application of decentralized exchange platforms, which allow anyone to exchange one digital asset for another. Developers such as Sologenic and Gatehub have built order book interfaces where users can connect their XRP wallets and start trading. There are also many XRPL native and wrapped assets available for users to trade.

Non-Fungible Token (NFT)

After the implementation of the XLS-20 mainnet proposal, NFT will become the latest member of the XRPL ecosystem. The implementation will allow for all basic NFT functionality, including minting, trading, and burning, as well as advanced features such as automatic royalties for creators and co-ownership of assets. This means users will be able to create, buy, sell and trade NFTs in a variety of markets while enjoying the benefits of the XRPL blockchain.

How to buy XRP on Binance?

You can buy XRP on cryptocurrency exchanges like Binance.

1. Log in to your Binance account and visit [Trading] -> [Spot].

2. Enter "XRP" in the search bar to view existing trading pairs. We will use XRP/BUSD as an example.

3. Visit the [Spot] box and enter the amount of XRP you want to purchase. In this example, we select Market Order. Click [Buy XRP] to confirm your order, and the purchased XRP will be credited to your spot wallet.

Summary

XRPL will continue to facilitate transactions and applications on its platform due to its energy-saving protocol and developer-friendly environment. We can think of XRPL as a resource portal to help solve the current cross-border payment problems of banks, institutions and enterprises.