What is XRP and what is the XRP Ledger (XRPL)?

XRPL is a blockchain/ledger for transfers and exchanging assets, and XRP is its native token. XRP is used for fees and as liquidity/settlement tooling.

How is XRP different from Ripple?

XRP is a digital asset on XRPL. Ripple is a company that develops payment products and has historically been linked to the XRPL ecosystem, but XRPL is an open network with independent validators.

Is there mining and is XRP supply capped?

There is no mining: the full supply was created upfront; the maximum is 100 billion XRP, and no new XRP beyond that are issued.

What are XRPL fees and why do people say they are “burned”?

The minimum fee for a standard transaction is 0.00001 XRP (10 drops) and it is destroyed (burned) as an anti-spam mechanism; under heavy load the network can temporarily raise the minimum cost.

Why are XRP transactions usually confirmed quickly?

XRPL uses validator consensus and reaches agreement roughly every 3–5 seconds, enabling fast confirmations.

What are the key risks for XRP as an asset?

The main ones are market volatility, regulation (including precedents like the SEC case against Ripple), plus infrastructure/counterparty risks when holding on exchanges and the risk of user mistakes.

What is XRP (XRP)

XRP is the native asset of the XRP Ledger (XRPL). It is used to pay network fees and as a tool for fast transfers/settlement, including as a “bridge” between currencies in payment scenarios.

Launch 2012-06 XRP Ledger

Who created it

Jed McCaleb, Arthur Britto, David Schwartz, Chris Larsen, OpenCoin / Ripple

Why it was created

To create a fast, low-cost ledger for transfers and value exchange (including cross-currency payments), where XRP can serve as the native asset for fees and as “bridge” liquidity.

How it’s used

Paying network fees (minimum fee and anti-spam protection)
XRP transfers with fast confirmation/finality
Cross-currency payments (atomic multi-hop settlement on XRPL)
Protocol-level NFTs on XRPL
Use as a “bridge currency” in Ripple payment products (on-demand liquidity scenarios)

Risks

High price volatility of XRP
Regulatory risks by country; in the US there was a prolonged dispute with the SEC (in 2025 it was reported the case concluded and a $125m penalty was imposed)
Centralisation/trust risks around validator lists (UNL) and validator infrastructure
User error risk (wrong address, memo/tag, sending to an exchange without a tag)
Network risks: fee increases under load (the minimum fee can rise)

FAQ

What is XRP and what is the XRP Ledger (XRPL)?: XRPL is a blockchain/ledger for transfers and exchanging assets, and XRP is its native token. XRP is used for fees and as liquidity/settlement tooling.
How is XRP different from Ripple?: XRP is a digital asset on XRPL. Ripple is a company that develops payment products and has historically been linked to the XRPL ecosystem, but XRPL is an open network with independent validators.
Is there mining and is XRP supply capped?: There is no mining: the full supply was created upfront; the maximum is 100 billion XRP, and no new XRP beyond that are issued.
What are XRPL fees and why do people say they are “burned”?: The minimum fee for a standard transaction is 0.00001 XRP (10 drops) and it is destroyed (burned) as an anti-spam mechanism; under heavy load the network can temporarily raise the minimum cost.
Why are XRP transactions usually confirmed quickly?: XRPL uses validator consensus and reaches agreement roughly every 3–5 seconds, enabling fast confirmations.
What are the key risks for XRP as an asset?: The main ones are market volatility, regulation (including precedents like the SEC case against Ripple), plus infrastructure/counterparty risks when holding on exchanges and the risk of user mistakes.