August 23, 2023

What is XRP, and why does it matter?

Engiven adds a new token to its crypto donation platform

Get to know XRP

Like Bitcoin and Ethereum, XRP is a digital asset that can be exchanged on a proprietary, open-source network called the XRP Ledger (XRPL). Created by Ripple Labs in 2012, XRP was designed to solve the issue of cross-border transactions involving different fiat currencies. In this use case, XRP operates as a "bridge" currency between the sender (who is using one fiat currency in one country) and the recipient (who is using a different fiat currency in a different country).

XRP is a pre-mined token, meaning the total supply (100 billion tokens) already exists. Though most of them have already been released, the remaining supply will trickle out onto the network at a rate of less than 1 billion per month. 

For the last three years, XRP and Ripple Labs have been in a legal battle with the SEC (Securities and Exchange Commission) that was resolved on July 13, 2023. In the suit, the SEC contended that Ripple Labs was issuing unregistered securities to investors. Judge Analisa Torres ruled in favor of Ripple Labs, determining that the XRP token did not meet the criteria laid out in the Howey Test and, thus, did not qualify as a security. For more on legal proceedings, visit this blog: XRP advances crypto cause in legal battle vs. SEC.

How the XRPL network works

One of the unique features of the XRPL is how it validates transactions. Unlike the Bitcoin and Ethereum networks, which validate transactions via a PoW (Proof-of-Work) protocol, it uses a PoA (Proof-of-Association) protocol, employing a collaborative community of trusted nodes connected to the blockchain. These nodes collectively validate transactions by seeking network consensus.

This PoA protocol allows the XRPL to process transactions more quickly and efficiently while expending significantly less energy. The XRPL can process transactions in mere seconds, much quicker than other crypto counterparts that must verify PoW. 

Why it matters to Engiven's partners

At Engiven, we're thrilled to offer the XRP to our extensive list of accepted crypto tokens. Customers can now receive donations of XRP and over 95+ other cryptocurrencies to further the mission of their 501(c)(3) nonprofits.

To donate XRP to any US-based registered nonprofit, visit today and search for the organization you wish to support.