Ripple does not use a blockchain
The Ripple network does not use a blockchain. Its native cryptocurrency XRP, unlike Bitcoin or Ethereum, does not rely on a Proof of Work (PoW) algorithm. Because of this, Ripple requires less energy and computing power while offering faster transaction speeds.
Instead, transactions in the Ripple network are processed by validation servers. These servers continuously compare received and processed data with a shared database (the ledger).
Ripple’s validation servers use a consensus mechanism called HashTree. The key difference between the Ripple network and Proof of Work blockchains lies in how consensus is reached. In Ripple, only a single value summarising the ledger data is compared, not the full data itself.
The independent validation servers are operated either by individuals or by banks and institutions. According to Ripple’s technical FAQ, the validation servers use about the same amount of energy as email servers.
Ripple is more than just the XRP cryptocurrency
While Bitcoin and many altcoins position themselves as independent alternatives to traditional currencies and (central) banks, Ripple takes almost the opposite approach. It aims to function as a global settlement network and works closely with banks, payment providers and financial institutions.
XRP is intended to serve as a flexible “middleman currency” to make the exchange of any asset possible.
Ripple has existed longer than Bitcoin
Interestingly, the company Ripple has been around longer than Bitcoin. A predecessor of the Ripple protocol was developed in 2004 under the name “Ripplepay”.
Developments and future plans of Ripple and XRP
Since 2012, Ripple has been working to use the internet, blockchain technology and XRP to enable fast, low-cost and reliable asset transfers worldwide.
Some cryptocurrency payment platforms, for example, offer deposits and withdrawals in XRP. Ripple aims to revolutionise payments and is working to standardise international transactions using fintech applications. Ripple also encourages regulators around the world to introduce blockchain into traditional payment processes.
XRP Ledger 1.6 was released in August 2020 and included a number of updates to improve overall performance. The consensus mechanism was stabilised by various bug fixes and optimisations, especially by ignoring offline validators when they are not connected to the network. Stronger validations also make it easier to detect Byzantine behaviour, an known issue in XRP.
Since then, Ripple has continued developing the technology. In June 2025, XRP Ledger 2.5.0 was released. It is considered the most comprehensive upgrade to date. It introduces features such as batch transactions, token escrow and permissioned DEXs, which are especially relevant for regulated financial institutions and actors.
In addition, several improvements were made to support developers and fix bugs related to NFTs and payment channels. The aim of these updates is to establish XRP as the foundation of a powerful, regulation-ready network.
In parallel, a settlement was reached in the years-long legal dispute with the U.S. Securities and Exchange Commission (SEC). The SEC had accused Ripple in 2020 of selling unregistered securities in the form of XRP. The SEC’s argument was that about 50% of the total XRP supply was held by Ripple. In its official statement, Ripple defended itself by saying that the XRP network is fully decentralised and that holding XRP does not grant any entitlement to Ripple’s revenue or profits.
In August 2025, the case was officially closed, and Ripple accepted a fine of $125 million. However, XRP can still be publicly traded without being classified as a security. The outcome of the case was influenced in part by the active support of the XRP community, which submitted evidence and made public statements.
Ripple also operates an initiative called Ripple Xpring. Ripple Xpring is an ecosystem initiative that supports projects and companies working on further use cases for XRP. To expand XRP’s use beyond international transactions—such as crypto solutions for debt and derivatives, Ripple Xpring supports such projects, acquires companies, and provides investments and grants.
