In a nutshell: The XRP Ledger (XRPL) is a public, open-source blockchain that has run since 2012. Instead of miners or stakers, a network of independent validators agrees on a new version of the ledger every few seconds. XRP is its native currency, used to pay tiny transaction fees and to hold a small account reserve. The ledger also has a built-in exchange, escrow and support for other tokens. Educational only; not financial advice.
Last updated: October 12, 2026.
The XRP Ledger is the blockchain that XRP lives on. People often mix up three names: XRP (the coin), the XRP Ledger (the network) and Ripple (a company that uses both). This guide explains the ledger itself in plain English: who runs it, how transactions get confirmed, what it costs and what you can do on it. For the coin itself, see our guide to what XRP is.
Table of contents
What Is the XRP Ledger?
The XRP Ledger is a decentralized public blockchain. According to xrpl.org’s history page, it was built in 2011 and 2012 by David Schwartz, Jed McCaleb and Arthur Britto, who wanted a faster, more energy-efficient alternative to Bitcoin. The network went live in June 2012. The developers later formed the company that became Ripple.
The software that runs the network, called rippled, is open source on GitHub. Anyone can run a server, read the ledger or build on it.
A “ledger” on the XRPL is a snapshot of every account balance and setting at a point in time. Each new ledger version is linked to the one before it, much like blocks in Bitcoin.
XRP Ledger vs XRP vs Ripple
- XRP Ledger (XRPL): the public blockchain network.
- XRP: the ledger’s native digital asset. All 100 billion XRP were created when the ledger launched, and no more can be created, per xrpl.org.
- Ripple: a private company that builds payment products on the XRPL and holds a large amount of XRP, much of it in escrow. Ripple does not control the ledger by itself. Its scheduled escrow releases are covered in our XRP escrow unlock news.
How the XRP Ledger Works: Consensus
Bitcoin uses mining (proof of work) and Ethereum uses staking (proof of stake). The XRPL uses neither. It runs the XRP Ledger Consensus Protocol:
- Transactions are sent to the network. A wallet signs a transaction and sends it to any XRPL server, which passes it on.
- Validators propose a set. Validators are servers run by universities, exchanges, businesses and individuals. Each one proposes which pending transactions should go into the next ledger.
- Each validator trusts a list. Every server picks a Unique Node List (UNL): validators it trusts not to collude. Most servers use a recommended list published by groups such as the XRPL Foundation.
- Supermajority agreement. Over a few rounds, validators converge. A transaction set is final once at least 80% of a server’s trusted validators agree.
- The new ledger closes. xrpl.org says ledgers close roughly every 3 to 5 seconds, and confirmed transactions are final. There is no waiting for extra confirmations.
Because no one is racing to solve puzzles, the XRPL uses far less energy than proof of work. No one earns block rewards either: validators run the software without being paid in XRP by the protocol.
Accounts, Reserves and Fees
Accounts and the reserve
To use the XRPL, you need an account (an address starting with “r”). A new account must be funded with a minimum amount of XRP called the reserve. The reserve stops people from filling the ledger with spam accounts. Validators can vote to change it; per xrpl.org it was lowered to a base reserve of 1 XRP, plus 0.2 XRP for each extra object you own (such as a token trust line or open offer). That reserved XRP stays in your account, but you can’t send it.
Transaction fees
Every transaction pays a small transaction cost, normally 0.00001 XRP (10 “drops”). That XRP is destroyed rather than paid to anyone, so total XRP supply slowly shrinks. Fees rise automatically when the network is busy, which makes spam attacks expensive.
Destination tags
When you send XRP to an exchange, you often need a destination tag: a number that tells the exchange which customer the payment belongs to. Forgetting it is one of the most common ways beginners lose track of a deposit.
Built-in Features
Many things that need smart contracts on other chains are native features of the XRPL:
- Decentralized exchange (DEX): the ledger has had an order book exchange built in since launch, per xrpl.org.
- Automated market maker (AMM): liquidity pools were added through the XLS-30 amendment in 2024.
- Tokens: anyone can issue tokens, such as stablecoins, which holders accept through “trust lines.”
- Escrow: XRP can be locked until a set time or condition. Ripple uses this to lock up its XRP holdings.
- Payment channels and checks: tools for fast streams of small payments and for “pay later” transfers.
- NFTs: native NFT support arrived with the XLS-20 amendment.
New features arrive through amendments. An amendment turns on only after it holds support from at least 80% of trusted validators for two weeks.
How It Compares With Bitcoin and Ethereum
| XRP Ledger | Bitcoin | Ethereum | |
|---|---|---|---|
| Agreement method | Federated consensus (UNL) | Proof of work | Proof of stake |
| Typical finality | About 3–5 seconds | About 10 minutes per block; several blocks advised | About 13 minutes for full finality |
| Block rewards | None | Yes (miners) | Yes (stakers) |
| Fees go to | Destroyed | Miners | Mostly burned, tips to validators |
| Supply | 100B created at launch | Capped at 21M | No fixed cap |
For background on the other two, see what Bitcoin is and what Ethereum is.
Criticisms and Risks
- Centralization debate: critics say reliance on a recommended validator list concentrates influence. Supporters point out that anyone can run a validator and choose their own list.
- Ripple’s large holdings: Ripple’s XRP and escrow releases are closely watched by the market.
- Regulation: the SEC sued Ripple in 2020. The case ended in 2025, after courts found Ripple’s institutional XRP sales were securities sales and both sides dropped their appeals. See the SEC’s original complaint announcement.
- User mistakes: missing destination tags, sending to the wrong address and phishing are bigger everyday risks than the protocol itself.
FAQ
Is the XRP Ledger the same as Ripple?
No. The XRPL is an open, public blockchain. Ripple is a company that builds on it and holds XRP.
Do you need XRP to use the XRP Ledger?
Yes. Every account must hold the reserve in XRP, and each transaction burns a tiny XRP fee.
Can you stake XRP on the XRP Ledger?
No. The XRPL has no native staking or block rewards. Any “XRP staking” offer comes from a third party with its own risks. Learn how real staking works in our staking guide.
How fast is the XRP Ledger?
New ledger versions close about every 3 to 5 seconds, and confirmed transactions are final.
Is the XRP Ledger secure?
It has run continuously since 2012. As with any network, your biggest risk is how you store your keys. See our guide on seed phrases.
This article is for education only and is not financial advice.
