In a recent discussion, Ripple CTO David Schwartz addressed an important question that has intrigued the XRP community: can the XRP ledger (XRPL) have two tokens with the same name? Schwartz’s response provided valuable insight into the original design intent of the XRP Ledger and its handling of token names, especially those denominated in USD.
In a recent discussion, Ripple CTO David Schwartz addressed an important question that has intrigued the XRP community: can the XRP ledger (XRPL) have two tokens with the same name? Schwartz’s response provided valuable insight into the original design intent of the XRP Ledger and its handling of token names, especially those denominated in USD.
Schwartz highlighted that XRPL was originally designed with this intention: all USD-denominated tokens would use USD, and those attempting to pay and receive payments could consider all USD they support as fungible.
Schwartz’s explanation highlighted a key aspect of the XRPL architecture: the focus on the fungibility of tokens with the same denomination. By using a common identifier like “USD” for all USD-denominated tokens, the ledger aims to streamline transactions and ensure that all such tokens maintain fungibility.
Tomiwabold OlajideThe XRPL supports assets other than XRP that can be represented as tokens. Standard tokens are fungible, meaning that all token units are interchangeable and identical, allowing cross-currency payments.
Tokens may also be non-fungible. Non-fungible tokens (NFTs) are used to represent ownership of unique tangible, non-physical, or completely digital products, such as artwork or in-game items.
Stablecoins are also a common model for tokens on the XRP Ledger. The issuer holds valuable assets outside of the XRP Ledger and issues tokens that represent the same value on the ledger.
The history of the XRP Ledger dates back to 2011, when three engineers, David Schwartz, Jed McCaleb and Arthur Britto, began working on it. They became fascinated by Bitcoin and set out to create a better version that would overcome its limitations: to produce a digital asset that was more sustainable and created exclusively for payments.
