Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 128

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 128
---
 validators ensure
the integrity and accuracy of the ledger. Each node in the network maintains a Unique Node List — a list of other validators
that the node trusts to reliably validate transactions. The XRP Ledger’s architecture means that different nodes may maintain different
UNLs, but there needs to be some overlap in the UNLs for the consensus mechanism to work effectively. Similar to the Bitcoin network,
anyone can join and start using the XRP Ledger; however, unlike the Bitcoin network, which operates on a fully permissionless blockchain,
the XRP Ledger is maintained by a network of trusted nodes that accept or reject transactions on the XRP Ledger. As of July 2025,
the default configuration for the XRP Ledger has two Trusted Nodes Lists: one published by the XRP Foundation and one published by Ripple
Labs. Typically, these default Trusted Nodes Lists are very similar to one another or even identical. As of July 2025, Ripple Labs
runs only 1 of the 35 validators in the default Trusted Nodes Lists.

<div align='center'>59</div>

A transaction on the XRP
Ledger begins when a user submits a transaction to the XRP Ledger. The submitted transaction is broadcast to all validator nodes. Validators
do not immediately confirm transactions as final; instead, they go through a process of reaching consensus on which transactions should
be included in the next ledger version. Each validator collects incoming transactions into a proposed ledger, called a candidate ledger,
and then exchanges their proposed candidate ledgers (also known as proposals) with other validators. The actual consensus process happens
over several rounds. In each round, validators attempt to come to an agreement on which transactions should be included in the next ledger
version. In each round, validators examine the transactions in the proposed ledger from the previous round and compare it to the proposals
from other validators in their UNL. If the validator sees that a supermajority (typically 80% of validators) of trusted validators
have proposed the same set of transactions, the validator updates its proposal to align with the majority. After a few rounds of exchanging
proposals, when a supermajority (typically 80%) of validators have agreed on the same set of transactions, that version of the ledger
is considered valid. All participating validators then update their copy of the ledger with the new, agreed-upon transactions. The final
ledger version is broadcast to all nodes, and it becomes the new “official” state of the ledger.

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