Glossary
This glossary defines the terms used throughout the Ripple USD stablecoin documentation.
Anti-Money Laundering (AML)
Policies, procedures, and laws put into place by financial institutions to prevent bad actors from misrepresenting illegally obtained funds as legal income.
blockchain
A blockchain is a secure, decentralized digital ledger shared across multiple nodes. It uses cryptographic hashes and consensus algorithms to ensure transaction integrity and immutability. Each node holds a copy, providing transparency and eliminating the need for a central authority.
cryptocurrency
A digital currency (for example, XRP, ETH) that uses cryptographic technology, such as a blockchain.
See also: fiat currency.
Decentralized Application (dApp)
A software program that operates on a blockchain or peer-to-peer (P2P) network of computers instead of a single central computer.
ETH
ETH, or Ether, is the native currency of the Ethereum blockchain network.
Ethereum
A decentralized public blockchain network that supports smart contracts, decentralized applications (dApps), and digital transactions using its native cryptocurrency, ETH.
Ethereum gas
The fee that Ethereum users pay to execute a transaction on the Ethereum blockchain network. Ethereum gas fees must be payed in ETH.
Ethereum Virtual Machine (EVM)
The decentralized virtual environment that executes code across all Ethereum nodes.
fiat currency
A currency issued and backed by a government. For example, USD, PHP, INR.
See also: cryptocurrency.
issuer
An entity or organization that creates and distributes tokens or digital assets on a blockchain. The issuer can be responsible for minting new tokens, managing their distribution, and controlling aspects like supply and compliance with relevant regulations.
Know Your Customer (KYC)
The processes an organization puts in place to verify the identity of their customers.
ledger
The distributed record of all balance changes for a given blockchain currency.
minting
The process of creating a new token (for example, a stablecoin) for distribution on the blockchain.
Ripple USD (RLUSD)
Ripple USD (RLUSD) is a stablecoin issued by Standard Custody & Trust Company, LLC (SCTC), a subsidiary of Ripple. The stablecoin is fully backed by a segregated reserve of cash and cash equivalents, and is redeemable 1:1 for US dollars.
smart contract
An electronic contract that uses blockchain technology and can be programmed to execute automatically when specific conditions are met. For example, the contract can define what entitlements and behaviors are supported by a digital token, such as a stablecoin.
stablecoin
A type of digital token that is tied to the value of a stable asset, such as a fiat currency.
token
A digital asset that represents a unit of value or ownership, created and managed on a blockchain.
wallet
A software application or hardware device designed to securely store and protect a user’s wallet address, which holds their digital assets (for example, stablecoins, NTFs).
wallet address
A unique identifier used to receive, manage, and store digital assets like cryptocurrencies, tokens, and other assets on a blockchain.
XRP
The native cryptocurrency of the XRP Ledger. All accounts in the XRP Ledger can send XRP among one another and must hold a minimum amount of XRP as a reserve. XRP can be sent directly from any XRP Ledger address to any other, without needing a gateway or liquidity provider.
XRP Ledger (XRPL)
A decentralized cryptographic ledger powered by a network of peer-to-peer servers. The XRP Ledger is the home of XRP , a digital asset designed to bridge the many different currencies in use worldwide.