XRP’s network

XRP transactions are processed faster than Bitcoin transactions, with blocks — or ledgers, as they are called on the XRPL — being confirmed in three to five seconds as opposed to Bitcoin’s 10 minutes. Interested parties can also build on the XRPL blockchain. XRP transactions typically cost a small fraction of 1 XRP, which generally works out to a value less than a penny or so. Transaction fees are burned, slightly decreasing the amount of XRP in existence.

The XRP Ledger is run by validators through a system called the XRP Ledger Consensus Protocol. This format differs from other consensus mechanisms such as proof-of-work (PoW) seen in Bitcoin. Essentially, validators work together to produce blocks — or ledgers, per the XRPL — with an agreement higher than 80% required among participants for continued forward progress on the XRPL network.