XRPL Definitions
Start Here
People get lost because the language gets thrown at them before anybody explains it properly.
This page fixes that.
- Read the term
- Understand what it means
- Understand why it matters
Core Definitions
Wallet
A wallet is the tool that lets you hold, send, and receive digital assets. It gives you access to your funds and your activity on the ledger.
Public Address
A public address is the part you can share. It is where people send assets to you. Think of it like an account number, not a password.
Private Key
A private key is the secret that controls your wallet. Anyone with it controls the assets. If somebody gets it, the wallet is effectively theirs.
Seed Phrase
A seed phrase is a human-readable backup for your wallet. It restores access. If you lose it, recovery can be gone. If somebody else gets it, they can take everything.
Trustline
A trustline is the permission your wallet sets to hold a specific issued token on XRPL. No trustline usually means that token cannot be held in that wallet.
Token
A token is a digital unit issued on a ledger. Some represent utility. Some represent access. Some are garbage. The word alone does not tell you whether it has real value.
DEX
DEX means decentralized exchange. It is where assets can be traded directly on-chain instead of through a traditional centralized exchange.
Liquidity
Liquidity is how easily something can be bought or sold without causing a violent price move. More liquidity usually means cleaner trading and less chaos.
AMM
AMM means automated market maker. It is a pool-based trading system where assets are swapped against liquidity in a pool instead of matched only through an order book.
Slippage
Slippage is the difference between the price you expected and the price you actually got when the trade executed. Thin liquidity usually makes slippage worse.
Settlement
Settlement is the point where the transfer is completed and recorded. On XRPL, settlement is one of the core reasons people pay attention to the rail.
Custody
Custody means who controls the assets. If you control the keys, you have custody. If a platform controls the keys, they have custody and you are trusting them.
Burner Wallet
A burner wallet is a separate wallet used for riskier activity, testing, or limited interaction. It helps keep your main holdings away from unnecessary exposure.
Cold Wallet
A cold wallet stores access offline or in a more isolated way. It is built for stronger security than a wallet you use every day on a hot device.
Hot Wallet
A hot wallet is connected to the internet and used regularly. It is more convenient for activity and usually less secure than cold storage.
Bridge Asset
A bridge asset is used to move value between different assets or currencies. That is one of the core ways people explain the role of $XRP inside a broader value-transfer system.
What To Remember
Public address is safe to share.
Private key and seed phrase are never safe to share.
Trustlines matter on XRPL.
Liquidity and slippage matter every time you trade.
Custody tells you who is really in control.