XRP Ledger

Last updated

XRP Ledger
Original author(s) Jed McCaleb, Arthur Britto, David Schwartz
Initial releaseJune 2012
Stable release
1.0.0 [1] / 15 May 2018 [1]
Repository
Written in C++
Operating system Server: Linux (RHEL, CentOS, Ubuntu), Windows, macOS (development only)
Type Real-time gross settlement, currency exchange, remittance
License ISC license
Website xrpl.org

The XRP Ledger is a cryptocurrency platform launched in 2012. The XRPL employs the native cryptocurrency known as XRP, and supports tokens cryptocurrency or other units of value such as frequent flyer miles or mobile minutes. [2]

Contents

History

Development of the XRP Ledger began in 2011 by engineers David Schwartz, Jed McCaleb and Arthur Britto, with a discussion initiated by McCaleb on a public discussion board. The open-source project was originally called "Ripple", the unique consensus ledger was called the Ripple Consensus Ledger, the transaction protocol was called the Ripple Transaction Protocol or RTXP and the digital asset (known as "ripples") using XRP as the three-letter currency code to follow the naming convention of BTC for Bitcoin. The "XRP Ledger Consensus Protocol" was formally established in 2012. [3] In May 2018, Ashton Kutcher gifted a charity sponsored by Ellen DeGeneres $4 million in the currency, which was noted at the time to be the "third most-valuable cryptocurrency on the market". [4]

On July 13, 2023, Judge Analisa Torres of the United States District Court for the Southern District of New York issued a decision on motions for summary judgment and stated the XRP token itself is not a security, although the manner in which it is sold could constitute the sale of a security. "XRP, as a digital token, is not in and of itself a 'contract, transaction, or scheme' that embodies the Howey requirements of an investment contract". [5]

Technical overview

The XRP Ledger operates on a consensus protocol that differs from traditional proof-of-work (PoW) and proof-of-stake (PoS) mechanisms. [3] [6] Transactions are validated by a network of independent validators who reach consensus every 3 to 5 seconds, enabling rapid transaction settlement. [3] Users rely on a trusted list of validators known as the Unique Node List (UNL). While this approach provides faster transaction validation and security, though it has led to discussions about centralization within the network.

The XRP Ledger peer-to-peer overlay network is characterized by a small-world network topology, featuring a tightly clustered structure and short paths between nodes. [7]

Role of Ripple Labs

Shortly after the XRPL was launched, McCaleb, Britto and Chris Larsen founded the company Open Coin in September 2012 to operate on the ledger. On September 26, 2013, OpenCoin officially changed its name to Ripple Labs, Inc. Unlike many cryptocurrencies, XRP was pre-mined, with 100 billion tokens created at inception. [3] [8] The XRPL founders gifted 80 billion XRP, the platform’s native currency, to Ripple Labs. Ripple Labs holds a portion of XRP and periodically releases tokens into circulation through sales, aiming to maintain market stability.

See also

Related Research Articles

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References

  1. 1 2 "Official source code". Github. Retrieved May 14, 2014.
  2. ↑ "Ripple Labs Banks $3.5M for Open-Source Payments System and Virtual Currency" . The Wall Street Journal Pro. Dow Jones & Company. November 12, 2013. Retrieved January 28, 2014.
  3. 1 2 3 4 Arslanian, Henri (2022). The Book of Crypto: The Complete Guide to Understanding Bitcoin, Cryptocurrencies and Digital Assets. Springer Nature. pp. 111–13. ISBN   978-3-030-97951-5.{{cite book}}: CS1 maint: url-status (link)
  4. ↑ Huddleston Jr., Tom (May 24, 2018). "Ashton Kutcher gave Ellen DeGeneres $4 million in cryptocurrency for her charity — here's what you need to know about Ripple's XRP". CNBC .
  5. ↑ District court summary judgement, pdf, 13 July 2023.
  6. ↑ Yuguo Li (October 2024). "Exploring the Evolution, Trade-offs, and Applications of Blockchain Technology". In Yulin Wang (ed.). Proceedings of the 2024 2nd International Conference on Image, Algorithms and Artificial Intelligence (ICIAAI 2024). Atlantis Press. p. 316. doi:10.2991/978-94-6463-540-9_32.
  7. ↑ Tumas, Vytautas; Rivera, Sean; Magoni, Damien; State, Radu (June 7, 2023). "Topology Analysis of the XRP Ledger". Proceedings of the 38th ACM/SIGAPP Symposium on Applied Computing: 1277–1284. doi:10.1145/3555776.3577611.
  8. ↑ Kauflin, Jeff (October 13, 2014). "Is This the Next Bitcoin? There's a new digital monetary system in town". NBC News .
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