What is XRP and How Does it Work?

​XRP is the native cryptocurrency of the XRP Ledger (XRPL), an open-source, decentralized blockchain technology. While it is heavily associated with Ripple Labs—the technology company that uses XRP to build payment software for banks—XRP itself operates independently on the XRPL.

​Unlike Bitcoin or Ethereum, which rely on energy-heavy "Proof-of-Work" or "Proof-of-Stake" to process transactions, the XRP Ledger uses a Unique Consensus Mechanism. Independent validators (including universities, businesses, and financial institutions) agree on the order and validity of transactions. Because there is no "mining" involved, the network is incredibly fast, cheap, and eco-friendly.

●Conclusion

​XRP is no longer just a speculative token waiting for regulatory approval; it is an active, legally clear digital asset facilitating billions in global trade. While the broader crypto market will always experience volatility, XRP's fundamental focus on solving a multi-trillion-dollar problem—friction in international money movement—gives it a unique and enduring place in the digital economy.

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