What Is XRP Ledger? – Is It Mandatory For XRP?

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XRP-coin

What is XRP Ledger, and should you have it when investing in Ripple XRP? First of all, for true beginners, XRP is an altcoin developed by the founders of Ripple, and the XRP Ledger is an online cryptographic ledger for use in handling the transfer of XRP between users.

There is a world of confusion about the whole Ripple, Ripple Labs, Ripple XRP, XRP, XRP Ledger, and they all work or do not work together. Not surprisingly, this gets them a lot of attention on sites such as Quora, where people ask thousands of questions.

How can you go wrong with all the publicity? It’s surely good for business, so why not feed the mystery? No one at Ripple has written or revealed a tell-all history of the company, but they reveal enough to be taken seriously enough to have a competitive altcoin attached to their name.

XRP, The Altcoin

Although there is no denying that Ripple developed XRP, owning any amount of XRP does not give you any stake or ownership of Ripple, the company.

Ripple, itself, says, XRP is a digital asset independent of Ripple, and the XRP Ledger is the open-source technology behind it. The XRP Ledger was created independently from Ripple and thus, Ripple does not control or own it. 

At this moment, XRP is worth $0.22 per coin. It has been on a downslope for the last several months, creeping a smidgen up now and then so as not to fall into oblivion.

Some experts had predicted a doubling of value in early November. That didn’t happen, so now word is that it is expected to rise significantly in early 2020. Knowing what we do about experts and their visions, take everything with a healthy dose of salt and keep your eyes open.

Join Coinbase To Start Investing In XRP

History Of XRP

In 2012, a new company called OpenCoin was formed by a team of men who wanted to get away from Bitcoin’s proof-of-work system for mining and giving coins value.

Prior to founding OpenCoin, some of the future owners of the company were working on creating the new cryptocurrency XRP and making the XRP Ledger. OpenCoin wasn’t an official company until Ryan Fugger, who owned Ripplepay, joined the team.

OpenCoin’s founders wanted a system that depends on the consensus of network members, rather than competitive mining. They believed this would keep the majority of coins from being hoarded by miners.

XRP Funds Ripple

Ripple started out rather poor. Using old style investors gave the company $9,000,000. It seems a lot, but for a company located in California, it’s not much.

Founders decided to use their XRP to fund Ripple. The company, still known as OpenCoin got 80 billion, while the founders mostly got the rest.

Now, XRP had to increase its worth in order to sustain the company. To begin the public interest in the coin, on February 20, 2013, OpenCoin started its new Bitcointalk campaign. Using “Bitcoin” as part of the name might have been deceptive, but initial joiners were promised free XRP as a reward.

Not surprisingly, fans of Bitcoin didn’t take this lightly. An official smear campaign was launched against Ripple, largely accusing the whole company of being a scam.

The negativity was unpleasant, to say the least, but the publicity went a long way, and XRP became a viable rival in the crypto market.

In October of 2013, OpenCoin announced it had changed its name to Ripple Labs.

BOOKS ON XRP AND OTHER CRYPTOCURRENCIES

Back To The XRP Ledger

Well, now we know the XRP Ledger was started before Fugger came along with his company, joining a team that became OpenCoin, then Ripple Labs. What now?

Ripple denies, on their website, ownership or control of XRP Ledger. They refer you to xrpl.org, where we read, Ripple stewards the development of the XRP Ledger, and advances XRP as a key contribution to the Internet of Value: a world in which money moves the way information does today.

Well, by the various definitions of the words used, you can steward and advance something without inventing or controlling it. Neither quote is contradicting the other.

What, Exactly, Is XRP Ledger?

To put the exactitude of it all in a small article is impossible. Think documenting the entirety of Julius Caesar’s life in a small comic book. It will satisfy someone with a passing interest, but any true fan will blow it away and make you look stupid.

Well, I’m not completely stupid, but if you want the full scoop you’ll need to go to the XRP Ledger website. What follows is my little snippet.

Imagine one of those little record-keeping ledgers at the back of a checkbook. Now imagine you have an electronic one for XRP. Instead of just deposit and withdraw, you also have exchange, trade, sell, buy, etc. Add the fact that as long as XRP is involved, all other world currencies can be used on it, as well.

Now add Ripple and all other people who have XRP. Okay, now add the best fact; the math is all done by the ledger. It keeps track of everything that everybody does with it forever. Add safeguards against hacking and DDoS attacks.

It’s almost – but not quite – like XRP Ledger is its own little blockchain. Everything is so neat and tidy and safe. No worries. If you have XRP and want to deal with it, the Ledger is a fantastic online tool.

Is XRP Ledger Necessary For Me?

No. Which is a good thing for XRP. I had XRP sitting in my portfolio for a while, but when I bought, held, and eventually exchanged it for Tezos, I didn’t use an account with XRP Ledger.

I’ve never had an account with XRP Ledger, and at the moment, I don’t plan to make one. The ledger isn’t a bad thing. It just isn’t necessary or mandatory for minor investments or transactions.

Each time a person with an account makes a transaction, a tiny piece of XRP is required as a fee. The amount paid for the fee is destroyed forever. Why doesn’t the ledger just stash it somewhere? What does the fee + destruction accomplish?

100 billion XRP coins were created by the Ledger and no more will ever be created! Whatever is lost or destroyed is gone forever.

This rushed article isn’t going to delve into all that, but do feel free to visit their comprehensive website to learn more. This is just a tiny answer to a big question. What is XRP Ledger? It’s a decentralized platform for holding and dealing with XRP.

Was the lead-up too long? The answer too short? Are you more confused than ever or do you know enough to move on? The crypto world is full of questions about XRP. Now you can give a few answers. Share your thoughts in the comments below!

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20 Thoughts to “What Is XRP Ledger? – Is It Mandatory For XRP?”

  1. Phil

    my opinion of any CRYPTOCURRENCIES are that they are too risky and very unstable.  

    It was very hard to understand exactly what the ledger thing was, and seeing that you are not planning on getting it then seems like it is not needed to be successful with the .  CRYPTOCURRENCIES

    I have invested in physical silver in the past, I prefer tangible assets. 

    1. Cattington

      I agree that tangible assets are more trustworthy. 

  2. Travis

    I have always been a little skeptical about these cryptocurrencies. I am nervous that there’s really not anything to back the currency, so what is there to stop whoever is in control of it to wrap up shop and Disappear with any earnings? Throw in things like threes XRP ledgers that charge you to transfer currency and I just don’t see how this is better than something like Venmo or Cash App. Thank you for the information though it is very helpful and does explain a lot. 

    1. Cattington

      Thank you for your comment, Travis! Most people are very skeptical until they dip a little in and see that they’ve gained something. Some people make millions, others make nothing, and others lose. It’s all about timing and watchfulness.

  3. Alblue

    Thanks for explaining about the XRP Ledger. When I researched about cyrptocurrency, I found so many terms related XRP and it made me really confused. After reading your explanation, I personally think it is more simple and fun to invest in DogeCoins 🙂 I will check your other articles for my cryptocurrency research. Thanks

    1. Cattington

      Thank you for making me smile! Some digital coins are certainly more fun than others. 🙂

  4. Rashaad

    Hi! This is a great post and very informative. Prior to reading I had little to no knowledge about XRP Ledger and this helped me to better understand. I also learned a bit more through your other posts which I found informative as well. Cryptocurrency is very confusing to most people as it is relatively knew and has mixed perspectives towards it.

    Thanks for sharing and keep up the good work!

    1. Cattington

      Thank you for your kind words, Rashaad. I’m glad you’re enjoying our articles.

  5. Paula

    I am definitely a beginner in cryptocurrency. While this company and XRP are pretty complicated, you made it make more sense. It’s super interesting that XRP was created by the ledger and then destroyed when a transaction occurs. I have to wonder how cryptocurrency is valued and even created. I’ll be reading more here. Thanks for the explanation. 

    1. Cattington

      Thank you for the kind words, Paula. 🙂

  6. KingAndrea

    Thanks for sharing this amazing and mind blowing information about what xrp ledger is and how mandatory is it for xrp. This is actually the first time I’m reading extensively about this topic but I think it’s not mandatory because as you’ve cited yours to be an example, xrp can work well with no inclusions, this is also confirmed by Ripples. Its nice to read through.

    1. Cattington

      Thank you for your comment. I’m glad you found the article useful. 🙂

  7. yoge

    The article about the ” What Is XRP Ledger?” looks nice. You give a several information about the XRP. Even my cousin sister recommender for me but I’m not interested with the XRP before seeing your article but after seeing your article it gives more additional information about the history of xrp and worth of xrp and clears my doubts. Thanks for giving the recommended information.And do more article about cryptocurrency

                                                                                                                                                                                  – by yoge

    1. Cattington

      Thank you for the time you took to read and comment on my article, Yoge.

  8. CT

    Hello, thank you for this very informative review of XRP Ledger. Recently, I’m looking for similar products and do the research a period of time but I find it’s so confusing and difficult to understand so I can’t continue. Importantly, I know nothing about that so I have to learn it from zero.

    Luckily I landed on your site. I can see you spend a lot of time to review it that impresses me a lot that saves me a lot of time. You introduce in a simple way so I don’t need to research it online to do the research again. But, cryptocurrencies are always too difficult for me. I think I have to spend more time to study your post. All I know about cryptocurrencies is a risk so many countries ban it. The cost is also expensive.

    After reading your post, I think I don’t need to spend more time on other sites to study more. I need time to digest it. Thank you so much. I believe your post is helpful for many people. Please keep sharing with us.

    1. Cattington

      Thank you very much for your comment, CT. I’m glad you found the article useful.

  9. PurpleLioness

    Hiya Cattington

    I think thanks to you I might finally understand what XRP is!  Your explanation is clear and simple to understand even for me and I’ve been trying to figure it out for a while. 

    I am writing a crypto currency blog about my journey in the crypto space but I am still a huge noob so sites like this really help me to get trustworthy information that I can pass on to others at the same level as myself. 

    I am not a huge fan of banks so I’ve mostly stayed away from XRP and all things Ripple as I don’t trust banks anymore but after reading your article I can see there is more to XRP than I originally thought so I will be checking it out further and I have bookmarked your site for future reference. 

    Thank you for the fab insights into XRP ledger, can i ask, did you buy any more XRP or did you just exchange it all and not look back? 

    Krs PurpleLioness 

    1. Cattington

      Hello PurpleLioness! I’m glad you found the information useful. Shortly after moving my investment from XRP to Tezos, Tezos went down in a big way. I’m keeping an eye on XRP. Some people had been projecting a doubling of value in early 2020, but one never knows. I could go back. I haven’t, but it’s not ruled out. Thanks for stopping by!

  10. Bill808

    You do a good job of explaining XPR and all its evolutions, At its best, BitCoin is confusing to me and I have pretty much-ignored cryptocurrency as a way to buy or sell stuff. As an investment, people have done well, so my early skepticism was not justified. Your explanation of XPR leger and that it is not needed by the average small investor is helpful.

    I’d like to know how financial vehicles like Apple Pay and Facebook’s efforts to create its own financial system will work. They must be based on blockchain technology.As I learned more about blockchain, the technology BitCoin is built on, I learned how truly revolutionary the technology is. Like any tool, it can be used for good or evil. Cryptocurrency can fund terrorism or be used by citizens of a country where the national currency is unstable as a safer place to cash their money.

    Thoughts on BlockChain

    Actually, blockchain can be used to manage any kind of data. Some states in the  USA are even experimenting with a blockchain voting system. Most large scale businesses in the USA and international will implement a blockchain-based system into their retail transactions within the next ten years. There is some speculation that the Fed will convert our money system into a blockchain-based system and stop printing money. I think that is far fetched, but there are advantages. Billions could be saved and bank robbers could be put out of business if we had a financial system based on cryptocurrency.

    In many places where there are not banks such a sub-Saharan Africa, cryptocurrency has become the favorite way of doing business. Problems facing such large scale implementation of cryptocurrency are the ability to scale up and the limits imposed by the time it takes to create a block.

    Cryptocurrency in our future

    Cryptocurrency will become an important part of our lives in the coming years. The  better we understand it, the better we will be able to avoid the scams and benefit from the advantages of cryptocurrency as it matures.

    I have a lot to learn about Cryptocurrency before I will be comfortable using it. I look forward to you educating me through this website and through Wealthy Affiliate University.

    1. Cattington

      Thank you for your thoughtful comment, Bill. I agree that blockchain is one of the most beneficial new technologies to come out in a while. When and if Bitcoin ever bites the dust, we’ll still have the benefits of blockchain.

      The only really bad thing about crypto, in general, is the fact that the government keeps getting more and more involved, defeating the original purpose. But crypto is here to stay. Too many people have put too much time and money into it.

      Come back any time. I welcome new ideas!

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