Xrp - Page 6

XRP is a digital cryptocurrency created by the technology company Ripple Labs Inc. It was designed primarily to facilitate fast and cost-effective international money transfers between financial institutions. XRP operates on a decentralized, open-source blockchain technology known as the XRP Ledger, which allows for near-instant transaction confirmations and scalability. Unlike many other cryptocurrencies, XRP is not mined; instead, all tokens were pre-mined at inception, with a specific amount released into circulation while the rest are held in escrow by Ripple Labs to manage supply. XRP's main purpose is to serve as a bridge currency in cross-border payments, enabling liquidity and reducing the need for multiple currencies in transactions. Its unique consensus algorithm, which involves trusted validators, distinguishes it from traditional proof-of-work systems used by cryptocurrencies like Bitcoin.