Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 133

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 133
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 contribute to its ongoing expansion and impact in the blockchain space.

Transactions are validated
on the XRP Ledger by a network of independent validator nodes. These nodes do not mine new blocks but participate in a consensus process
to ensure that transactions are valid and correctly ordered on the XRP Ledger. Any node can be a validator, but for practical purposes,
the XRP Ledger depends on a list of trusted validators known as the Unique Node List or “UNL.” Validators are entities (which
can be individuals, institutions, or other organizations) that run nodes to participate in the consensus process. These 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 Ledger 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.

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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