what network does coinbase use for xrp

Coinbase leverages the Ripple Consensus Ledger for its XRP transactions, enabling fast, scalable, and low-fee transactions via a decentralized network of validator nodes.

Nov 02, 2024 at 07:08 pm

Network used by Coinbase for XRP

1. Ripple Consensus Ledger (RCL)

Coinbase primarily uses the Ripple Consensus Ledger (RCL) for XRP transactions. Here's an overview of RCL:

• Consensus Mechanism: RCL employs a unique consensus protocol called the XRP Ledger Consensus Protocol (XLCP). This protocol uses a decentralized network of validator nodes to verify and validate transactions in a secure and efficient manner.
• Transaction Speed: The RCL is optimized for fast and scalable transactions. XRP transactions typically settle in a matter of seconds, making it a suitable option for real-time payments and other time-sensitive applications.
• Fees: XRP transactions are subject to minimal transaction fees, which are typically a fraction of a penny. This makes it an attractive option for small-value transactions.

2. Fidelity Digital Assets (FDA)

In addition to the native RCL, Coinbase also utilizes the services of Fidelity Digital Assets (FDA) for custody and execution of XRP transactions. FDA provides a secure and compliant platform for Coinbase to manage its XRP holdings and facilitate trades.

Here's a summary of network usage by Coinbase for XRP:

Network	Purpose
Ripple Consensus Ledger (RCL)	Primary transaction network; provides speed, efficiency, and low fees
Fidelity Digital Assets (FDA)	Custody and execution services; ensures security and compliance