According to U.Today, Ripple's Chief Technology Officer, David Schwartz, recently shed light on a question that has been puzzling the XRP community: whether two tokens with the same name can exist on the XRP Ledger (XRPL). Schwartz's explanation offered valuable insights into the original design intent of the XRPL and its approach to token names, particularly those denominated in USD.
Schwartz emphasized that the XRPL was initially designed with the idea that all USD-denominated tokens would use the USD identifier. This would allow those making and receiving payments to consider all USD they support as interchangeable or fungible. This design intent underscores a crucial aspect of the XRPL's architecture, which is 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 simplify transactions and ensure that all such tokens maintain their fungibility.
In addition to XRP, the XRPL supports other assets that can be represented as tokens. Standard tokens are fungible, meaning all token units are interchangeable and identical, which facilitates cross-currency payments. Tokens can also be non-fungible. Non-fungible tokens (NFTs) are used to represent ownership of unique tangible, non-physical or entirely digital products, such as pieces of art or in-game items. Stablecoins are another common type of token on the XRP Ledger. In this model, the issuer holds valuable assets outside of the XRP Ledger and issues tokens that represent equal value on the ledger.
The XRP Ledger's history dates back to 2011 when three engineers, David Schwartz, Jed McCaleb, and Arthur Britto, began working on it. Inspired by Bitcoin, they aimed to create a superior version that addressed its limitations, resulting in a digital asset that was more sustainable and designed specifically for payments.
Miyuki
