Ripple is a real-time gross settlement system (RTGS), currency exchange and remittance network created by Ripple Labs Inc.
XRP is the native currency of the Ripple ecosystem.
TABLE OF CONTENTS
- Base Reserve
- Owner Reserve
- Destination tag
Ripple is based around a shared XRP Ledger, which uses a consensus process that facilitates payments, exchanges and remittance in a distributed process. The native token of the ledger is known as XRP.
Ripple (XRP) is supported on the Trezor Model T only (as of firmware version 2.0.8)
With Ripple, users make payments between each other by using cryptographically signed transactions denominated in either fiat currencies or Ripple's internal tokens (XRP). For XRP-denominated transactions, Ripple can make use of its internal ledger, while for payments denominated in other assets, the Ripple ledger only records the amounts owed, with assets represented as debt obligations. The mechanism of making payments by means a network of trusted associates is referred to as 'rippling.'
The XRP Ledger applies reserve requirements for every address on the ledger. To activate an address and use it to send transactions, the address has to hold the minimum required amount of 10 XRP.
It is important to note that once you transfer the minimum reserve amount to a new address, you will not be able to move it elsewhere unless the account is deleted
An owner reserve is set for each object that a particular address owns on the XRP ledger. This is currently set to 2 XRP per item.
A destination tag is a unique identifier intended for the recipient of the transaction. Similar to the "Payment ID" used by Monero or a regular "payment reference" for bank transfers, this number is essential for identifying the origin of the transaction.
You must use the destination tag when sending XRP to exchanges or vendors which need to identify and pair your payment. In these cases, destination tag is provided by the receiving party.
Destination tags are not required for receiving XRP tokens in Trezor Suite.
The image below shows an example of a destination tag used on the Bitstamp exchange: