Understanding the XRP Naming Convention: Insight from Ripple’s Chief Technology Officer
David Schwartz, Chief Technology Officer at Ripple, delved into the intricacies of the XRP nomenclature on Reddit, shedding light on the origin of the name for the native currency of the XRP Ledger.
The naming process for XRP draws inspiration from the traditional method used for fiat currencies, involving appending a letter to a two-letter country code. Schwartz emphasized that currencies not tied to any specific country start with the letter “X,” a practice ensuring clear distinction and avoiding confusion.
In a recent comment shared with the cryptocurrency community on Reddit, David Schwartz, Ripple’s Chief Technology Officer and one of the key engineers behind the XRP Ledger, provided a insightful explanation of the naming convention for the native currency of the ledger, XRP. This clarification followed attention drawn to Edward Farnan, Head of Social Adoption at XRP for Healthcare, who highlighted Schwartz’s analysis.
**Understanding the Labeling Terminology**
Schwartz’s explanation shines a light on adopting the name “XRP” for the digital asset. He pointed to the traditional method used in naming fiat currencies, where the currency code, typically consisting of three letters, is derived by appending one letter to the two-letter country code of the issuing country. For example, the currency code for the US Dollar is “USD,” based on the country code “US.” This practice facilitates a unified approach to identifying currencies across global financial systems.
However, the terminology differs when it comes to currencies not tied to any specific country. Schwartz emphasized that a currency code for such assets starts with the letter “X.” This practice ensures clear differentiation for assets not falling under the jurisdiction of any single country, thus avoiding confusion. Drawing an analogy with gold, represented by the currency code “XAU” following its chemical symbol “AU,” the use of “X” to signify non-country-specific assets plays a pivotal role in naming XRP.
**The Genesis of “XRP”**
The choice of “XRP” as the original currency code for Ripple has deep roots in its early designations. Initially referred to colloquially as “ripples,” the digital assets required an official currency code that aligned with international standards while reflecting its global and non-national identity. The adoption of “XRP” as the currency code served as a natural evolution, combining the “X” to denote its global and non-national status with “RP” derived from its original moniker “ripples.”
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Schwartz also touched on broader practices related to currency codes in the cryptocurrency industry, highlighting that it’s a common practice in the industry to use the letter “X” for non-national currency codes.
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