XRP Ledger Accounts

 

Hello, welcome back to our series on the XRP Ledger.

In this episode, we'll describe the basics of accounts. The XRP Ledger is a Decentralized, Permissionless, open source Blockchain that anyone can Contribute to and Develop solutions.

Therefore, in Terms of transactions, anyone can Transact or View the Transactions that happen in the Ledger ("ledger"). To make a transaction on the Ledger, which means Sending, Receiving, or making an offer to Exchange Money or other forms of value, you need to have an ACCOUNT.

They are sometimes also called WALLETS. An account has two important components.

The PUBLIC ADDRESS is how an account is located on the Blockchain, or in other words, how a Payment is addressed.

A PRIVATE KEY ensures that only the Account Holder can access the Account and make transactions.

There are some great Account Features on XRP Ledger that are useful to know about.

The first is that an account can Hold Multiple Currencies or Asset types at the same time.

Second, for Accounts that require access by more than one-person, Key Rotation allows an entity that owns an address, such as a Charity, to allow different people to alternately hold the Key for that Address.

Therefore, if one person leaves, his key can be removed and his successor's key can be added. This way, the account is not lost when the person leaves.  She stays with the entity. As part of creating an account, a deposit is required.

This is called a “RESERVE ACCOUNT” and it is a small amount of XRP that activates the account. The reserve ensures that people don't create Empty Accounts that would take up storage space on Each Ledger Node.  It also prevents SPAM, which can CLOG THE LEDGER.

When a user closes and Deletes their Account, a portion of the Reservation is returned to them.

The Reservation Amount and refund amount are not fixed.

These values ​​are voted on by validator nodes every 256 blocks.

Additionally, reserve and return values ​​can be adjusted relative to the price of XRP.

So, as the price fluctuates, the Reserve and return values ​​are voted to compensate for this fluctuation. There are Accounts that act as Aggregates and include multiple users, like a large Cryptocurrency Exchange, for example.

When an individual's account is part of a larger aggregate, the public Address belongs to that Aggregate account, which is also the KEY HOLDER.

And then the individual would be identified by a target label.

In this scenario, think of the Public Address as the Address of a large Residential Building and the Destination label as the Apartment number where the individual user might be located.

To learn more about the fundamentals of the XRP Ledger, watch the next episode.

Subtitles by Grupo Nabla -- Escola Politécnica da USP