Quick answer: An XRP transaction takes 3 to 5 seconds. The Ripple network processes 1,500 transactions per second and charges only 0.00001 XRP in transaction costs, so for one XRP you can send around 270,000 transactions. That makes Ripple fast and cheap enough for banks to use for international payments.
XRP speed in figures
Measure | Value |
|---|---|
Transaction time | 3-5 seconds |
Throughput (TPS) | 1,500 per second |
Cost per transaction | 0.00001 XRP |
Energy use | Virtually zero (no mining) |
For comparison, bitcoin | ~10 minutes per block, ~7 TPS |
For comparison, VISA | ~24,000 TPS on average |
Why is Ripple so fast?
Ripple was designed from the start for one specific purpose: international payments between banks. That explains most of the choices.
With a traditional transfer from the Netherlands to Argentina, your money travels along a chain of correspondent banks. Each bank processes the transaction, charges costs and can cause days of delay. Ripple's idea: replace that whole chain with one fast XRP transfer. Bank A buys XRP, sends it to bank B in seconds, and bank B converts it straight into the local currency.
For such a model, speed is a requirement, not a luxury. Ripple's infrastructure, RippleNet, offers banks specific products such as xCurrent (payment processing), xRapid (liquidity bridge via XRP) and xVia (business payment interface). Since 2019 these products have been brought together under the name RippleNet.
Consensus instead of mining
Bitcoin uses mining: thousands of computers compete to create a new block, which takes about 10 minutes and uses enormous amounts of power. Ripple works differently: there are no miners and no blocks that are closed every few minutes.
Instead, Ripple works on the basis of consensus. A network of validators (trusted nodes) agrees every few seconds on which transactions are valid. A transaction becomes final as soon as 80% of the validators in a UNL (Unique Node List) agree on it. That consensus process takes 3 to 5 seconds.
The difference:
- Bitcoin, open network, anyone can become a miner, but slow and expensive in power.
- Ripple, semi-closed network, only trusted validators, fast and efficient.
That difference is no coincidence. Ripple is built for banks that need speed and compliance, not for maximum decentralisation.
What are validators? Validators are nodes (computers) that check and approve transactions. Anyone can run their own validator, but the network only trusts validators on the UNL, a list of reliable nodes. The UNL is maintained by Ripple Inc., universities, banks and other independent parties. No single validator runs the network on its own, 80% consensus is always needed.
Why is an XRP transaction so cheap?
With every XRP transaction a minuscule amount (0.00001 XRP) is burned, literally taken out of circulation. That is not a payment for miners (there are none) but an anti-spam mechanism: if spam transactions were free, someone could flood the network.
At the launch in 2012, all 100 billion XRP were created. A large part sits in escrow at Ripple Inc., which releases 1 billion every month for sales and partnerships. Whatever is not sold goes back into escrow.
Frequently asked questions about XRP speed
More about Ripple
Buying XRP at BTC Direct?
At BTC Direct you buy XRP quickly and securely with a card, bank transfer or Pay by Bank. Three steps and you have your first XRP, MiCA licence via the AFM, broker since 2013.
Buy your first crypto in 3 minutes, straight to your own wallet.
