What XRP Does: What It’s Best at

What XRP does? It serves as both a cryptocurrency and a technology for fast, low-cost international transactions. Discover more.

Among the numerous cryptocurrencies in the marketplace, XRP stands as a unique contender. But, what XRP does differently has often been misunderstood, misrepresented, or simply overlooked. This article aims to dispel those misconceptions and reveal the true power of this enigmatic digital asset.

What is XRP?

XRP is a digital currency that was created by David Schwartz, Jed McCaleb, and Arthur Britto before the establishment of Ripple, the company they later founded. It’s essential to note that Ripple and XRP are not synonymous, though the two entities are closely linked.

XRP’s Primary Function

Primarily, XRP does something fundamental: it serves as both a cryptocurrency and a technology protocol for fast, low-cost international transactions. In other words, XRP facilitates rapid transfers of value across borders.

What XRP does
XRP is best at moving value quickly and efficiently.

The XRP Ledger (XRPL)

The XRP Ledger (XRPL) is the open-source blockchain upon which XRP operates. Created by the same founders of Ripple, it’s an essential part of understanding what XRP does.

XRPL uses a consensus protocol, which is unique in the realm of digital currencies. This consensus protocol allows for faster, more efficient transactions compared to traditional proof-of-work systems.

XRP and Ripple’s Relationship

Ripple utilizes XRP in its payment ecosystem, RippleNet, but did not create XRP. The relationship between Ripple and XRP is akin to a technology company using an existing open-source software to build its services.

How Does XRP Work?

Fundamentally, XRP does what many cryptocurrencies do—it facilitates digital transactions. However, its use case in RippleNet is where it significantly differentiates itself.

XRP in RippleNet

In RippleNet, XRP acts as a bridge currency for transferring other currencies or assets quickly and efficiently, making it an essential part of Ripple’s payment ecosystem. This solves a significant problem in the international remittance field known as “nostro-vostro” accounts, which are typically slow and costly.

What XRP Does For Banks and Financial Institutions

With XRP, banks and financial institutions can streamline cross-border transactions. Rather than having to maintain numerous pre-funded accounts in various currencies worldwide, they can hold XRP as a universal bridge asset, reducing the time and cost of transactions.


The XRP Ledger natively handles NFTs or non-fungible tokens. It enforces royalties on-chain, which means that creators always get their cut from every sale, no exchange can change that. Also, thanks to very low fees, it is very cheap to mint big NFT collections.

XRP’s Speed and Efficiency

A significant aspect of what XRP does lies in its speed and efficiency. XRP transactions typically settle in around three to five seconds, much faster than most cryptocurrencies.

XRP’s Supply and Distribution

The total supply of XRP was created all at once (pre-mined) by its founders. Ripple currently holds a significant portion of this supply and periodically releases it into the market.

The Future of XRP

While it’s impossible to predict the future with certainty, the focus on what XRP does will likely continue to be its role as a bridge currency in international remittance. With the ongoing evolution in the global financial landscape, the potential of XRP cannot be underestimated.


In conclusion, what XRP does extends beyond the common cryptocurrency narrative. Its unique creation, its application within RippleNet, and its potential for transforming international remittance are all parts of this fascinating digital asset’s story.

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