Understanding Ripple (XRP) and Its Uniqueness
Date: 2023-11-23 Author: Dima Zakharov Categories: BLOCKCHAIN, IN WORLD
What is XRP?
XRP stands as a digital currency created as an alternative to Bitcoin, specifically aimed at enabling rapid and cost-effective cross-border transactions. While many cryptocurrencies offer similar features, Ripple sets itself apart by providing this functionality as a service for businesses.
Unlike Bitcoin, which relies on the proof-of-work consensus mechanism, XRP operates on a consensus mechanism based on the Federated Byzantine Agreement (FBA) model. This model doesn’t require mining or staking to verify and record transactions. Instead, it relies on trusted validator nodes, known as the Unique Node List (UNL), to achieve consensus and maintain the transaction ledger every 3–5 seconds.
A distinctive aspect of XRP is its early pre-mining phase. In 2012, 100 billion XRP tokens were pre-mined and made available.
Creators of XRP
The XRP Ledger was crafted by Jed McCaleb, Arthur Britto, David Schwartz, and Chris Larsen. Development commenced in 2011 and concluded in 2012.
After the blockchain launch, the newly formed company received 80% of XRP for developing cryptocurrency use cases. Initially named NewCoin and later OpenCoin, the founders assert that Ripple itself did not create the cryptocurrency but received it as gifts, eventually becoming known as Ripple.
Chris Larsen served as CEO of OpenCoin, McCaleb as co-founder and CEO, Schwartz as Chief Cryptographer, and Arthur Britto as an advisor. In 2013, the firm rebranded as Ripple Labs.
Mining XRP?
Unlike popular cryptocurrencies like Bitcoin and Ethereum, XRP Ripple does not involve mining. The XRP Ledger operates on a consensus mechanism that eliminates the need for mining.
Therefore, the concept of mining XRP does not apply as with other cryptocurrencies, given that all tokens exist already and are gradually introduced into the market.
