XRP is a **network token**. Specifically, it is the native cryptocurrency of the **XRP Ledger**, a decentralized blockchain developed by Ripple Labs. XRP functions as a multi-purpose token within this network:

1. **Medium of exchange**: Facilitates fast and low-cost transactions, especially for cross-border payments.

2. **Liquidity bridge**: Acts as an intermediate asset for conversions between different currencies on the Ripple network.

3. **Incentive for the network**: Nodes and validators use XRP to process transactions efficiently.

Unlike other tokens that depend on smart contracts on blockchains like Ethereum, XRP is an integral part of the XRP Ledger, designed to optimize speed and scalability in global payments.