Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 132

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 132
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 the ledger’s protocol.

Once activated, the changes
are deployed across the XRP Ledger. All nodes running the XRP Ledger software must update to the latest version to remain compatible with
the network. Even after deployment, the change is monitored to ensure it behaves as expected in the live environment. If any issues arise,
the community may need to address them through additional updates or modifications.

After the change is implemented,
the relevant documentation (such as the XRP Ledger technical documentation, API references, etc.) is updated to reflect the new features
or modifications. The community is informed of the successful implementation through official channels, including developer blogs, forums,
and updates to the GitHub repository.

Forms of Attack Against the XRP Ledger

All networked systems are vulnerable
to various kinds of attacks. As with any computer network, the XRP Ledger contains certain vulnerabilities. The XRP Ledger relies on a
network of validator nodes that agree on the order and validity of transactions. These nodes form the backbone of the consensus process.
Each validator node maintains a Unique Node List, which is a list of other validators it trusts. For a malicious actor to take over, they
would need to control a significant portion of the validators on the majority of these UNLs. To successfully alter the ledger, the malicious
actor would likely need to control more than 80% of the validator nodes or the voting power on the most widely used UNLs.

If the malicious actor cannot
control the validator nodes directly, they might attempt to compromise the validators that are already trusted by the network (i.e., those
on the commonly used UNLs). This could involve hacking, bribery, deception or coercion.

A malicious actor could also
conduct an “eclipse attack.” In an eclipse attack, a malicious actor could isolate parts of the network so that the malicious
actor’s nodes can influence the consensus in isolated sections of the network, eventually leading to a split or takeover.

This is not intended as an
exhaustive list of all forms of attack against the XRP Ledger. For additional information, see “Risk Factors.”

Market Participants

Validators

Validators are crucial to the
operation and security of the XRP Ledger. Validators participate in the consensus process by validating and agreeing on the order and
validity of transactions. They ensure that transactions are consistent across the network, which helps prevent issues like double-spending.
Validators also maintain a copy of the entire XRP Ledger and work together to decide which transactions are included in each new ledger
version