XRP is a digital asset launched in 2012, designed for fast and low-cost global payments. It serves as the native cryptocurrency of the XRP Ledger, a decentralized blockchain. As of January 2025, XRP ranks as the third largest cryptocurrency by market capitalization, following Bitcoin and Ethereum. Unlike Bitcoin, which is often seen as digital gold, XRP is specifically tailored for efficient cross-border transactions, particularly benefiting financial institutions. The XRP Ledger utilizes a unique Ripple Consensus Algorithm that enables independent validators to confirm transactions without traditional proof-of-work or staking. This consensus mechanism allows for rapid transaction validation, achieving high throughput with minimal fees. XRP was pre-mined at its inception, with a total supply capped at 100 billion tokens, which Ripple Labs periodically releases from escrow. The SEC's lawsuit against Ripple Labs has significantly shaped the regulatory landscape for XRP, culminating in a 2023 ruling that considered XRP not a security for public sales. The future looks promising with increasing interest in XRP-based ETFs following the SEC's approval for the first crypto ETF in early 2024.

Source 🔗