What is the XRP Ledger?

⚙️ Origins of Consensus: Federated Byzantine Agreement (FBA)

In 2012, the developers of the XRP Ledger pioneered the Federated Byzantine Agreement (FBA) — a consensus protocol:

• Inspired by Classical Consensus

• Based on Byzantine Fault Tolerance (BFT)

• Enhanced with modifications for performance and efficiency

With XRP as the native digital asset, the main objective was to build a faster, cheaper, and more sustainable Bitcoin — enabling peer-to-peer value transfer at scale.

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🔄 How the Consensus Protocol Works

To uphold performance, XRPL uses a consensus protocol. Designated servers called validators, which anyone can operate, come to an agreement on the order and outcome of XRP transactions every three to five seconds.

All servers in the network:

• Process transactions according to the same rules

• Confirm valid transactions immediately

• Operate in a public and transparent way

• Rely on strong cryptography to ensure system integrity

📢 Currently, over 120 validators are active on the ledger, run by:

• Universities

• Exchanges

• Businesses

• Independent individuals

As the validator pool grows, the consensus protocol ensures decentralization of the blockchain over time.

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🔍 What Is the XRP Ledger (XRPL)?

In a nutshell

The XRP Ledger (XRPL) is a:

• Layer 1 blockchain

• Open-source, public, and decentralized

• Led by a global developer community

Extensive

XRPL pioneered core components of DeFi long before the term was mainstream, introducing:

Native DEX

First onchain DEX in the world, trading and moving assets anywhere in seconds with competitive liquidity

Issued Assets

Ability to represent digital currencies, legal obligations, fungible tokens, and other asset classes on the XRP Ledger

Advanced Payments

Use advanced payment capabilities like “Escrow” and “Checks” to build smart applications without smart contracts

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💡 Why XRPL Stands Out

XRPL is known for being:

• ⚡ Fast

• 💸 Low-cost

• 🌱 Energy-efficient

• 🧱 Reliable

It has been actively used for more than a decade — making it:

One of the most proven blockchains for payments and tokenization

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🛠️ Built for Developers

XRPL offers:

• A strong open-source foundation

• Ease of development

• Low transaction costs

• An active, knowledgeable community

🧩These features allow developers to build demanding blockchain projects without compromising the XRPL's lean and efficient design.

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🌍 Use Cases on XRPL

The XRP Ledger supports a wide range of applications:

• ✅ Payments

• ✅ Decentralized Finance (DeFi)

• ✅ Non-Fungible Tokens (NFTs)

• ✅ Tokenization of real-world and digital assets

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💰 The Basics of an XRPL Account

Imagine your XRPL account as a secure digital bank account. The network requires a small amount of XRP to be locked as a reserve in your account to open it and use certain features.

A one-time amount of 1 XRP is required to activate your account. This XRP belongs to you, but it must stay locked to keep the account active.

An additional amount of 0.2 XRP is required for every new digital asset or feature you add to your account (e.g., holding a new token or setting up a trade order).

These deposits are protective and spam prevention measures for the network, not fees. They are always recoverable when you stop using a feature or remove a digital asset.

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🏛️ XRPL’s Role in DeFi History

🔁 By introducing a decentralized exchange, token creation, IOUs, escrows, and other features — XRPL helped initiate the DeFi movement, even before it was widely recognized.

This allowed:

• Individuals and businesses to trade globally

• Without needing banks or intermediaries

XRPL laid the groundwork for trustless financial interaction in a decentralized environment.

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🌐 A Global Onchain Economy

Over the years, the XRP Ledger has:

• Continuously evolved

• Powered a global onchain economy

• Focused on being practical, safe, and accessible to everyone

Today, XRPL stands as a foundation for the future of open finance, built for speed, efficiency, and real-world utility.