What Is XRP Ledger (XRPL)? How does it work?

As of 2022, Blockchain Development is one of the most desired skill sets in the IT industry. It is frequently necessitated in newly established enterprises that deal with Web3 SaaS, decentralized finance (DeFi), and digital commerce, to even other spheres of industries like medical system technologies and supply chain management. As more and more businesses rely on these technologies to better their platforms and services, the demand for qualified developers consistently rises.

But what all resources are available for blockchain development? Are there any free options available for developers to learn and use?

In this blog, we will explain XRPL, an open-source Layer 1 blockchain ledger widely popular amongst the global developer community. We will evaluate its benefits and use cases for inefficient blockchain development.

What is Blockchain or DLT (Distributed Ledger Technology)?

Blockchain, also referred to as Distributed Ledger Technology, uses a decentralized network and cryptographic hashing to make the record of any digital asset visible and unalterable. These networks or ledgers are majorly classified into four different types: private blockchains, public blockchains, hybrid blockchains, and consortium blockchains.

Wish to create a career in Blockchain technology? Enroll yourself in Blockchain Councils’ Online Certification  today, and jump-start your career in the Web3 and blockchain domains!

What Is XRP Ledger?

You may have heard of Ripple, a payment network that uses XRP tokens to facilitate cross-border payments. But you may not know that Ripple is built on top of the XRP Ledger.

The XRP Ledger (XRPL) is a decentralized public blockchain that allows for the fast, low-cost, real-time transfer of XRP, fiat currencies, and other digital assets. It is also open source, meaning anyone can participate in its development.

The XRP Ledger was created in 2012 by Ripple co-founder and CEO Chris Larsen. Initially, it was used to power the Ripple payment network, but it has since been adopted by other companies such as Coil and Omni to innovate upon diverse Web3 implications.

How does XRPL work?

XRP Ledger is a decentralized platform allowing for peer-to-peer asset transfer. A consensus algorithm validates connections on the network, which makes the network incredibly fast and secure.

But what’s in it for you? 

It means you can use the Ledger and build upon it quickly and easily without opting for different third-party solutions for coding, hashing and compiling. You can develop dApps, and DeFi solutions, issue newer tokens and incite newer and faster modes of transactions.

Benefits of XRPL

There are numerous benefits to using the XRP Ledger. For starters,

• It is swift and efficient. 
• XRPL is capable of handling a total 1,500 transactions per second, which is far superior to any other blockchain platform. 
• It is also low-cost, which makes it an excellent choice for businesses and individuals looking to send or receive payments quickly and affordably.

How to Use XRP Ledger?

It is pretty simple. You need to:

• Download the XRP Ledger software, you can find it easily on the official website and create a wallet. 
• From there, you can start receiving and sending payments.
• Transactions are used to implement alterations to the Ledger.
• Request the XRP Ledger to learn the status of your accounts and tokens.

One thing to remember is that XRP Ledger is still in its early stages, so it is not as widely used as other cryptocurrencies. But as it continues to grow in popularity, we are sure more and more people will start using it. 

As of now, you can use the Ledger to 

1. Build apps
2. Improve product readiness
3. Make specialized payments/ perform transactions 
4. Manage Ripple or Clio server, and lastly
5. interoperate EVM Sidechain bridges.

How to Buy XRP?

So you want to buy some XRP? Well, it is not too difficult. Follow these steps:

• First step is creating a Ripple wallet. This is where you will store your XRP, so make sure it is a secure place. 
• Now, you can purchase XRP on several exchanges.
• And after you have your hands on some XRP, you can start using it for transactions. 
• You can also hold on to it as an investment because the value of XRP is predicted to go up over time.

Where to Store XRP?

There are various different options for you. You can store your XRP on a hardware wallet, like the Ledger Nano S, or a software wallet, like Toast Wallet.

But if you are looking for a more centralized option, you can also store your XRP on an online exchange. Exchanges like Bitfinex and Binance allow you to trade XRP, as well as other cryptocurrencies. But be careful because these exchanges are also vulnerable to hacking attacks.

What makes XRPL unique?

You might be wondering what makes the XRPL ledger so unique. Let’s look at some features it stand out fthat are reasons for this technology to stand out from other blockchains.

• To start with, XRPL is built for payments and can execute transactions in seconds at a cheap cost and with the minimum required energy.
• It is capable of handling large volume of transactions quickly and efficiently. 
• XRP can function efficiently as a bridge currency which is why businesses are starting to adopt it for settlements and cross-border payments. Financial institutions can store XRP instead of other fiat currencies.

Another thing that makes XRPL unique is its use of tokens. These tokens can represent currencies, assets, data, and many more. This opens up a whole world of transferability possibilities for businesses and consumers.

XRPL for developers

If you are an aspiring blockchain developer, you must be familiar with XRPL. The technology drives XRP Ledger and can be used to develop your apps. Additionally, it offers considerable versatility and a robust utility that allows developers to code in multiple languages like Java, JavaScript, Python, etc. It is also appropriate for any independent firm or developer looking to develop various use cases.

XRPL is built on top of the Ripple consensus protocol, which means it offers all the benefits of Ripple while also being fast, secure, and scalable. Plus, it is easy to use, which is why so many developers are already building on it.

If you are interested in learning more, head to the XRP Developer Portal. It has complete information you need to get started.

Subsequently, there are five different and main applications of the particular XRP ledger that comprises stable coins, payments, tokenization, DeFi and CBDCs.

• Payments

The XRP Ledger enables the effective transferring of assets globally, aiding instant money transfers for remittances, payrolls, treasury payments and other cross-border payments. Such as RippleNet powers cross-border payments via a decentralized network of payment providers and banks that utilizes the XRP Ledger. Even you, as a user, also correctly set up a wallet of XRP like Xumm to transact XRP, a neutral bridge asset optimized for worldwide payments with a low amount of fees. 

• Tokenization

Any asset can be tokenized on the XRP ledger, including NFTs, stablecoins, fungible tokens, and central bank digital currencies (CBDCs). As of May 2022, 5400 and more currencies have been issued and traded on this XRPL. 

• DeFi

Financial services and products can be accessed appropriately through XRP Ledger’s decentralized exchange, also known as DEX. The DEX is native to the protocol and uses a central limit order book model to trade digital assets. Users like you can utilize the same or any different ledger to develop automated bots to trade automatically on the DEX. 

• CBDCS

XRP Ledger supports the tokenization of CBDCs. With this feature, Central banks can securely and sustainably interoperate with each other through diversly in terms of systems for payment.

• Stablecoins

Financial institutions can issue stablecoins on the XRP Ledger. This helps them increase their value proposition to their customers,  diversify domestic and international transferability, and initiate new digital revenue sources. 

How to Develop Blockchain Applications on XRP Ledger?

Developing blockchain applications on the XRP Ledger is reasonably straightforward.

1. The first step is to install the XRP Ledger software. This free and open-source software can be downloaded from the XRP Ledger website. 
2. Once you have installed it, you must create a new account.
3. Now, you must create a new Ripple wallet. Your XRP tokens will be stored here. 
4. You must create a new Ripple address. Here, you will receive payments from other users.

Once you have set up your account, you can develop blockchain applications on the XRP Ledger.

Final Thoughts

• XRP Ledger (XRPL) is a distributed ledger technology that uses XRP cryptocurrency to power fast and secure transactions.
• XRP Ledger is different from other blockchains because it has a built-in inflammatory protocol that helps to prevent spam and denial-of-service attacks. Thus, it is faster and more secure than other blockchain technologies.
• XRP Ledger is also unique because it can process up to 1,500 transactions per second, making it one of the fastest blockchain technologies.

We hope this blog post has provided you with a sufficient understanding of the XRP ledger. Witness the potential of one of the world’s fast and most sustainable public blockchains. Start developing with XRPL today!

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