Key Features of XRPL
XRP Ledger (XRPL) is a decentralized system using blockchain cryptography, similar to Bitcoin.
The system is decentralized, meaning that no single institution or individual can control the entire network.
XRP
XRP is the native token of the XRPL network, a digital currency in which transactions are verified and records are maintained by XRPL.
Since the birth of the network, approximately 100 billion XRP have already been issued, which is different from the PoW system like Bitcoin, where tokens are issued each time it is mined.
Decimal points also exist, with the official maximum being 100,000,000,000.00000000drops.
Thus, 1XRP = 1,000,000,000drops.
Also, since XRP has deflationary properties and a small amount of XRP is discarded with each transaction, the total supply will decrease over time.
Consensus Protocol
XRPL utilize a unique consensus algorithm (Proof of Association), which is different from PoW and PoS, and is characterized by its high transaction verification efficiency.
Close to real-time settlement (3-6 seconds) is possible.
Validators & UNL
There is no direct financial reward for XRP Ledger (XRPL) validator operations. The main incentive of the validator is to keep the network stable and reliable and to promote its healthy evolution. This allows businesses that use XRP Ledger and the organizations that rely on system to benefit indirectly through the trustworthiness of the network. Another major incentive for validators is to earn the trust and reputation of the community.
Each validator also has the ability to select a Unique Node List (UNL) to trust. Currently, Ripple and the XRP Ledger Foundation publish a recommended default list, but if Ripple and the XRP Ledger Foundation no longer becomes trustworthy, each operator can set their own UNL and continue to use it.
World’s oldest DEX
The DEX (decentralized exchange), which is implemented as the world’s oldest known protocol, allows bridging currencies by automatically applying the cheapest currency trade order to settlement.
Conversely, it is rare to find a blockchain network where DEX is built into the protocol.
Enhanced features for financial use cases
XRPL already has the following financial features that do not require new development
- Ticket (check issuing functionality)
- Clawback (collect issued token functionality)
- Escrow (depository function)
- AMM (Automated Market Maker functionality)
The community is constantly proposing new features, and new features are only allowed to be added to the mainnet if they receive over 80% support over a 2-week period through Amendments.
Sustainability
XRP Ledger’s main strength is not only its speed, but also its efficiency.
XRPL uses a unique consensus algorithm, different from PoW and PoS, and its energy consumption is much lower than other blockchain technologies such as Bitcoin.
Since different blockchains often have different mechanisms and philosophies, it is impossible to say which is better or worse, but from a global perspective, less energy consumption is definitely a good thing.
Notes
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