The XRP Ledger is a decentralized blockchain network designed for fast, low-cost global payments. At the heart of this system are accounts, which serve as digital identities for holding XRP and initiating transactions. Unlike traditional banking accounts or even some other cryptocurrency wallets, XRP Ledger accounts have unique properties that reflect their hybrid role between financial instruments and cryptographic entities.
This guide explores the core components of XRP accounts—addresses, balances, sequence numbers, and transaction history—while clarifying common misconceptions and technical nuances based on official documentation and best practices.
What Is an Account in the XRP Ledger?
An account in the XRP Ledger is more than just a balance holder; it’s a structured data object that enables secure ownership and transfer of value. Each account includes several key elements:
- A unique address (e.g.,
rf1BiGeXwwQoi8Z2ueFYTEXSwuJYfV2Jpn) - An XRP balance, with part reserved permanently
- A sequence number starting at 1, incremented with each outgoing transaction
- A complete transaction history
One or more methods of transaction authorization, such as:
- The primary key pair (can be disabled but not changed)
- A replaceable "regular" key
- A multi-signature signer list
All core account data is stored in a ledger object called AccountRoot, which resides within the XRP Ledger's data tree. Additional assets like issued currencies or trust lines may also be linked to the account but are not stored directly inside it.
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Note: While similar to bank accounts in function, XRP accounts do not store non-XRP assets directly. Instead, those are managed through "trust lines"—bilateral agreements between users that enable tokenized asset transfers.
How Are XRP Accounts Created?
There is no dedicated "create account" transaction in the XRP Ledger. Instead, an account is automatically created when a Payment transaction sends at least the required account reserve amount (currently 10 XRP) to an unused, valid address.
This process triggers the creation of an AccountRoot object in the ledger. No other type of transaction can create an account.
Standard Account Creation Process
Generate a key pair using cryptographically secure randomness.
- Tools like the
wallet_proposemethod can help generate valid keys offline.
- Tools like the
Receive XRP from another account to your generated address.
- For example, withdraw XRP from an exchange to your personal address.
Once funded, the address becomes a live account on the ledger.
⚠️ Important: Funding an address does not grant control over it. Only whoever holds the corresponding private key can access and manage the account. If no one knows the secret key, the account becomes a black hole, rendering its XRP permanently inaccessible.
Understanding XRP Ledger Addresses
Every XRP account is identified by a Base58-encoded address, derived from its public key, which itself comes from a private key. These addresses follow strict formatting rules:
- Length: 25–35 characters
- Always start with the letter
r - Exclude ambiguous characters:
0,O,I,l - Case-sensitive
- Include a 4-byte checksum—making random valid addresses extremely unlikely (1 in ~4.3 billion)
Addresses are represented as strings in JSON and are crucial for sending and receiving transactions.
You can use any valid address—even one not yet associated with an active account—as a:
- Regular key
- Signer in a multi-signature setup
However, only funded accounts (those with sufficient reserve) can initiate transactions.
Can You Derive a Public Key from an Address?
No. The conversion from public key to address uses one-way hash functions. This ensures security: while you can verify that a public key matches an address, you cannot reverse-engineer the public key from the address alone. That’s why signed transactions include both the sender’s public key and address—to allow validation without exposing sensitive data.
For technical details on encoding, see the official address encoding specification.
Special Addresses in the XRP Ledger
Some addresses have predefined roles or historical significance. Many of these are black hole addresses, meaning they aren’t tied to any known private key—any XRP sent there is lost forever.
| Address | Purpose | Black Hole? |
|---|---|---|
rrrrrrrrrrrrrrrrrrrrrhoLvTp | ACCOUNT_ZERO – used as placeholder issuer in peer-to-peer communication | Yes |
rrrrrrrrrrrrrrrrrrrrBZbvji | ACCOUNT_ONE – placeholder for issuer in RippleState entries | Yes |
rHb9CJAWyB4rj91VRWn96DkukG4bwdtyTh | Genesis Account – holds initial XRP supply in new ledgers | No |
rrrrrrrrrrrrrrrrrNAMEtxvNvQ | Legacy name reservation black hole | Yes |
rrrrrrrrrrrrrrrrrrrn5RM1rHd | NaN Address – generated by old versions of ripple-lib due to encoding errors | Yes |
These addresses highlight how certain system-level functions rely on intentionally unreachable destinations to maintain ledger integrity.
Are XRP Accounts Permanent?
Yes. Once created, an account remains in the XRP Ledger indefinitely. This permanence is necessary because:
- The sequence number must be tracked to prevent replay attacks.
- The ledger maintains full state snapshots—not just transaction logs—so every new account increases ledger size.
Because of this design, Ripple discourages creating unnecessary accounts. Institutions managing multiple users (like exchanges or gateways) should instead use source and destination tags to differentiate transactions while operating from a single or small set of accounts.
👉 Learn how institutional platforms streamline payments using tagging systems.
Transaction History and AccountRoot
The XRP Ledger maintains a complete transaction history for each account. This history forms a chronological chain of transactions linked by their hash IDs and ledger indexes.
Each AccountRoot object contains:
- The identifying hash of the last transaction that modified it
- Metadata about prior states, enabling backward traversal of changes
This structure allows full auditability: you can trace every change to an account’s balance, sequence number, or permissions over time.
Transactions included in an account’s history are those that directly modify its AccountRoot state, such as:
- Outgoing transactions (which increment sequence number)
- Incoming payments affecting balance
- Permission updates (e.g., changing regular keys or enabling multi-signing)
Frequently Asked Questions
Q: How much does it cost to create an XRP account?
A: You need to send at least 10 XRP (the base reserve) to an unused address. This amount is locked indefinitely—so consider whether self-custody is worth the cost compared to using exchange-hosted balances.
Q: Can I recover XRP sent to a wrong or invalid address?
A: If the address is valid but unowned (like a black hole), recovery is impossible. Always double-check addresses before sending funds.
Q: Do I need a new account for each asset I hold?
A: No. Non-XRP assets are managed via trust lines, not separate accounts. One account can hold multiple trust lines for different tokens or gateways.
Q: What happens if I lose my private key?
A: Access to the account and its funds is permanently lost unless you’ve set up alternative signing methods like multi-signature or a replaceable regular key.
Q: Why doesn’t the XRP Ledger support account deletion?
A: For security and consistency, all accounts remain forever. This prevents sequence number reuse and maintains a complete historical record.
Q: Can I change my account’s main key?
A: No—the primary key cannot be changed, though it can be disabled. You can assign a new regular key for daily use, enhancing security through key rotation.
Core Keywords
- XRP Ledger account
- XRP address generation
- Account reserve
- Sequence number
- Transaction history
- Trust line
- Multi-signing
- Base58 address
👉 Explore secure ways to generate and manage your XRP wallet today.