Which Blockchain for XRP: Full Beginner Guide

Which Blockchain for XRP: Full Beginner Guide

Understanding which blockchain for XRP is crucial for anyone new to the world of cryptocurrencies. If you’re wondering what technology powers XRP, how it differs from other major cryptocurrencies, and what developments are shaping its use, this beginner-friendly guide covers all the basics—plus expert insights directly from leading analytics and official sources.

What Blockchain Does XRP Use?

XRP is built on its own blockchain protocol called the XRP Ledger (XRPL). Unlike cryptocurrencies such as Bitcoin or Ethereum that rely on Proof-of-Work or Proof-of-Stake consensus models, the XRP Ledger uses a unique consensus algorithm.

• XRP Ledger (XRPL):
  • An open-source, decentralized blockchain designed specifically for fast, low-cost transfers of value.
  • Enables transactions to settle in 3–5 seconds.
  • Handles up to 1,500 transactions per second, making it highly scalable compared to first-generation blockchains.
• The XRP Ledger is not compatible with Ethereum’s virtual machine (EVM), so it’s not a fork or variant of Ethereum or Bitcoin.

Key Takeaway: XRP does not run on Ethereum, Bitcoin, or any other chain—XRPL is purpose-built for speed, efficiency, and cross-border payments.

How Does the XRP Ledger Work?

The XRP Ledger is different from traditional blockchains used by coins like Bitcoin or Ethereum. Here’s how it functions:

• Consensus Mechanism: XRPL uses a protocol called Federated Consensus. Validators (trusted independent nodes) agree on the order and validity of transactions every few seconds, ensuring high throughput and security.

• Native Currency: XRP itself is the native digital asset on this ledger. It serves both as a bridge currency in global payments and as a way to prevent spam on the network by requiring tiny XRP fees for operation.

• Decentralization & Governance: Hundreds of validators worldwide participate. Anyone can run a validator node, but a Unique Node List (UNL) helps improve network resilience—similar to independent auditors ensuring consensus.

| Blockchain | Native Token | Consensus Type | Transactions/Second | Settlement Speed | |-----------------|-------------|-------------------|---------------------|------------------| | XRP Ledger | XRP | Federated | 1,500+ | 3–5 seconds | | Bitcoin | BTC | Proof-of-Work | ~7 | 30–60 minutes | | Ethereum | ETH | Proof-of-Stake | ~30 | 5–20 minutes |

Useful Fact: According to Ripple’s official documentation, over 70 million XRP Ledger ledgers have closed successfully since its launch in 2012 (source: ripple.com).

XRP Ledger: Latest Trends and Ecosystem Developments

The XRP Ledger has seen significant growth and ecosystem updates in recent years, making it an increasingly prominent player in blockchain finance.

• Ecosystem Growth:

  • The XRPL now supports smart contract functionality via Hooks or sidechains, allowing development of decentralized apps (dApps).
  • NFT minting and decentralized exchange (DEX) functionalities have been rolled out.
  • Institutional partnerships, especially in cross-border payments, continue to grow.

• Recent Updates:

  • The introduction of XRP Ledger Version 1.12.0 (2023) enhanced security, improved validator participation, and laid frameworks for new token standards.
  • According to analytics from Dune and Nansen, daily active addresses and transaction volumes are showing steady adoption—reflecting rising real-world usage.

• Latest Industry Insights:

  • Research by Messari and Glassnode suggests more enterprises are exploring XRPL as a settlement layer due to its speed and low cost, especially for remittance partners and fintech firms.

• Bitget Exchange supports XRP trading—meaning beginners who want exposure to XRP can start their journey on a reliable, user-friendly platform.

FAQs: Common Questions About XRP's Blockchain

Is XRP an Ethereum Token (ERC-20)?

No, XRP was never issued as an Ethereum token (ERC-20). It only exists natively on the XRP Ledger.

How Can I Store XRP Safely?

Use non-custodial wallets built for XRPL, such as Bitget Wallet. Bitget Wallet is beginner-friendly and supports secure XRP storage alongside other digital assets.

Can XRP Be Used on Other Blockchains?

XRP’s native form cannot move across blockchains directly. However, wrapped versions of XRP ( like wXRP) have been issued on some DeFi protocols to allow XRP exposure on other chains, but these are third-party solutions and not XRPL-native.

Why Is XRP Preferred for Remittances?

Due to:

• Near-instant settlement
• Low transaction fees
• Network stability

It is a top choice for financial institutions in global payments.

Who Maintains the XRP Ledger?

The XRPL is maintained by a decentralized network of validators and developers worldwide, including independent contributors, not exclusively Ripple Labs.

Key Insights and Takeaways for Beginners

• XRP runs on its own blockchain—the XRP Ledger—not Ethereum or Bitcoin.
• XRPL’s federated consensus delivers fast, cheap, scalable transactions ideal for payments.
• Recent upgrades and ecosystem growth have expanded the network’s capabilities, adding NFTs and custom tokens.
• Bitget Exchange provides a secure, beginner-friendly environment for trading and holding XRP.
• For wallet security and ease, Bitget Wallet is recommended for all types of digital assets, including XRP.

Whether you're just starting your crypto journey or comparing blockchains for investment or development, knowing which blockchain for XRP lets you make informed decisions. Stay up to date with the latest XRPL trends and always use leading platforms to safeguard your crypto assets.