How XRPL Works
Previously, we looked at a Basic Overview of XRPL. Here we look at the consensus model that makes XRPL work, and how XRPL differs from some other popular blockchains.
+ The Ledger​
XRPL is a decentralized, consensus-based ledger like its grandfather, Bitcoin. These ledgers record the times, addresses, and amounts of every transaction on the network. This information is then locked within immutable blocks as a record evolving across time.
+ XRPL Consensus​
Unlike Bitcoin, XRPL was specifically designed with speed and cost-efficiency in mind. To achieve the goal of better performance than the Bitcoin network, a new consensus model for XRPL was developed.
Consensus on XRPL depends on independent servers called validators reaching an agreement on the content to be committed to a new block. This process is known as Confederated Consensus. When a threshold percentage of validators agree a proposed version of the ledger does not violate the protocol, a new block is added to the blockchain, updating the ledger.
+ Benefits of Confederated Consensus​
XRPL’s consensus avoids the heavy computational requirements, and thus energy and time requirements, that would otherwise limit how XRPL could be used. These improvements allow XRPL to make 1500 or more transactions per second, offer 3-5 second transaction times, and have fees of around $0.01 USD or less.
+ How XRPL Differs From Alternatives​
XRPL has a unique combination of elements that allows users to experience a variety of benefits including low fees and fast transaction speeds. Below is a table giving some idea of how XRPL stacks up against alternatives.
+ Simple Stats of Common DeFi Chains​
| Ethereum | BSC | Polygon | XRPL | |
|---|---|---|---|---|
| Contract | Smart Contracts (Solidity) | Smart Contracts (Solidity) | Smart Contracts (Solidity) | Hooks Custom Logic (C or HookScript)* |
| Average Transaction Speed | 12 seconds | 3 seconds | 2 seconds | 3 seconds |
| Average Fees** | $3 USD | $0.30 USD | <$0.01 USD | <$0.005 USD |
| Possibility of Front-running | Yes | Yes | Yes | No |
\*\*Note: Data indicated in this table is dynamic and subject to variance over time.