What is XRP?

XRP is a decentralized digital asset designed to facilitate real-time global payments. Unlike Bitcoin, which is often seen as "digital gold," or Ethereum, which powers a vast ecosystem of decentralized applications, XRP's primary utility is as a bridge currency. This means it can be used by financial institutions to instantly send money across borders without the need for pre-funded Nostro/Vostro accounts, a system that can be slow and expensive.

How Does it Work?

The XRP Ledger (XRPL), an open-source, decentralized blockchain technology, underpins XRP. Transactions on the XRPL are confirmed in an average of 3-5 seconds, significantly faster than many other cryptocurrencies and traditional banking systems. This speed, combined with extremely low transaction fees, makes XRP an attractive option for high-volume, cross-border payments.