XRPL
The XRP Ledger(XRPL) is a decentralized, permissionless, open-source blockchain. Unlike the Bitcoin Smart Chain(BSC) which runs a proof-of-work(PoW) system and the Ethereum Network(ETH) which runs a proof-of-stake(PoS) system, the XRPL runs transactions on its own consensus protocol, known as the XRP Ledger Consensus Protocol. In traditional centralized systems, there are specific assigned administrators that assign and define how transactions are being processed. Whereas, in decentralized systems there isn’t a single point of authority that controls transactions. The XRP Ledger Consensus Protocol defines a set of rules that all participants on the XRPL must agree and follow.
Key Players and Modes
On the XRP Ledger, there’s a peer-to-peer network of independent nodes that processes transactions and maintains the shared state of the ledger. If you want to submit transactions, read ledger data, or otherwise participate in the network, then your application will connect to a node on this network.
There are 3 types of nodes on the ledger: API(stock) nodes, validator nodes, hub nodes.
API nodes are the servers that provides API access to read data from the shared ledger, submit transactions, and watch activity in the ledger.
Validator nodes are servers that secure the network by participating in the XRP Ledger Consensus Protocol.
Hub nodes are servers that relay messages and information between members in the network.
There are also other modes of network that you may connect to the ledger.
XRP
XRP is the native digital asset that runs on the XRPL. XRP acts as a bridge to other currencies and assets which allows quick and efficient currency exchanges. XRP transactions can be processed on the ledger in 3 to 5 seconds with extremely low transaction fees which makes it ideal for real world payments and cross-border microtransactions.
Accounts and Reserve
Accounts are wallet addresses on the XRPL. An account on the ledger must stake a reserve, the current base reserve is 10 XRP. The account is activated when it holds more XRP than the base reserve. When the account is deactivated, a portion of the reserve will be returned to the account. Additionally, there is an owner reserve which is a reserve that an account must stake for each item it owns on the ledger. The current owner reserve is 2 XRP. The reserves and return amount are not fixed, these are voted by the validators every 256 blocks. Developers who want to get started on building on the XRP Ledger, use the XRP testnet faucet to generate an account and get free XRP to use on the testnet.
Sustainability
It is no secret that Bitcoin mining requires a lot of computational power and electricity, thus, increasing the carbon footprints. Thanks to the efficient consensus protocol XRPL uses, XRPL provides developers the speed and efficiency at even lower energy costs. XRPL became the first global blockchain in 2020 to achieve carbon net zero.
To get started developing on XRP Ledger, please visit the dev tutorials!
To learn more about the XRP Ledger, please visit the technical videos!
