If you’re new to crypto or finally taking a closer look at XRP, this guide provides everything you need to understand one of the most practical and widely used digital assets in the space.
In a clear and insightful thread on X, well-known crypto analyst Pumpius broke down XRP’s core features and real-world applications, cutting through the noise to focus on facts. Building on that foundation, this guide explores what XRP is, how it works, and why it matters today.
What Is XRP?
XRP is a digital asset built for real-time, cross-border payments. While Bitcoin was created to function as a decentralized store of value, XRP was specifically designed to make global money transfers faster, cheaper, and more scalable. According to Pumpius, XRP processes transactions in just three to five seconds, costs less than a cent per transaction, and can handle over 1,500 transactions per second.
This speed and efficiency are what separate XRP from most other cryptocurrencies. It isn’t meant to replace traditional money, but rather to upgrade how money moves. As Pumpius puts it, “It’s not ‘just another coin.’ It’s infrastructure.”
Beginner’s Guide to $XRP — What You Need to Know
If you’re just getting into crypto or finally curious about XRP, this thread breaks down what it is, how it works, and why it matters.
No hype. No noise. Just facts.👇🧵 pic.twitter.com/fIqSz4U106
— Pumpius (@pumpius) June 17, 2025
Understanding the XRP Ledger (XRPL)
The technology behind XRP is the XRP Ledger, commonly referred to as XRPL. This is the decentralized blockchain network where XRP transactions take place. Unlike Bitcoin or Ethereum, which depend on energy-heavy mining, XRPL uses a consensus mechanism that doesn’t require mining at all. This makes it environmentally friendly, incredibly fast, and highly reliable, with the ledger closing every few seconds.
Pumpius explains it best: “Think of XRPL as the highway. XRP is the car.” The ledger also comes with advanced capabilities, including a built-in decentralized exchange (DEX), native tokenization, and support for real-world assets like stablecoins, NFTs, and even tokenized biotech data. This makes the XRPL not just a payments network but a powerful platform for developers and institutions building on-chain solutions.
Who Uses XRP and the XRPL?
XRP’s real-world use extends well beyond trading. Ripple, the fintech company closely associated with XRP, uses it to develop global payment solutions for financial institutions. Through RippleNet and On-Demand Liquidity, XRP helps banks and remittance companies settle international payments within seconds, removing the need for pre-funded accounts and reducing costs.
Pumpius highlights that XRP and XRPL aren’t just used by banks. Developers are building a wide range of projects on the ledger, including DeFi protocols, tokenized asset platforms, and even biotech applications such as XRP Healthcare and DNA Protocol. These projects demonstrate that XRP is not just about finance; it’s about enabling secure and efficient value transfer across multiple industries.
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XRP vs. Other Cryptocurrencies
Each major cryptocurrency serves a different role. Bitcoin is widely viewed as a store of value, often referred to as digital gold. Ethereum dominates the smart contract space but faces persistent issues with network congestion and high fees. XRP, in contrast, is optimized for real-time value transfers and liquidity provisioning.
Pumpius summarizes it this way: “XRP isn’t trying to replace banks—it’s replacing their plumbing.” Instead of tearing down the financial system, XRP enhances the infrastructure behind it.
Legal Status and Regulatory Clarity
One of the most significant milestones in XRP’s journey came in 2023, when U.S. District Judge Analisa Torres ruled that XRP is not a security when sold on digital asset exchanges. This decision gave XRP a rare level of regulatory clarity in the United States—something that most cryptocurrencies still lack.
Pumpius rightly called it “one of the most important wins in crypto history.” The ruling allowed XRP to be relisted on major U.S. exchanges and restored institutional confidence in the asset.
How to Store XRP Safely
Pumpius stresses the importance of self-custody for those holding XRP. Rather than leaving assets on exchanges, where users don’t control their private keys, he advises using secure wallets such as Xaman, Tangem, or Ledger hardware wallets. As he puts it, “Not your keys = not your coins.” In crypto, maintaining control of your assets is essential.
Final Thoughts
XRP is not built on hype. As Pumpius concluded, “XRP is not hype. It’s not a meme. It’s one of the most adopted, fastest, and legally clarified assets in crypto.” With a clear use case, powerful infrastructure, and growing adoption across sectors, XRP stands out as a practical tool in the future of finance and decentralized value transfer.
For beginners seeking a serious and credible introduction to digital assets, XRP is a smart place to start.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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