Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 141

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 141
---
 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. They confirm transactions approximately every 3-5 seconds, making the ledger both fast and reliable. Validators vote on
proposed changes to the XRP Ledger protocol through the amendment process. If 80% or more of the validators agree on a proposed amendment
for two weeks continuously, the change is adopted and becomes part of the network’s code. Validators contribute to the overall
health and stability of the network. By participating in the consensus process, they help secure the ledger against attacks and ensure
that it remains trustworthy.

<div align='center'>63</div>

Ripple Labs currently runs
only 1 of the 35 validators in the default Trusted Nodes List. Some universities and research institutions operate validators as part
of their research into blockchain technology and to support the decentralization of the network. Independent companies, developers, and
other entities that support the XRP Ledger’s ecosystem also run validators. These could include blockchain-focused companies or
other technology firms. Enthusiastic community members and developers who are committed to the success and decentralization of the XRP
Ledger may also operate validators.

Unlike some other blockchain
networks, validators on the XRP Ledger are not directly compensated for their participation in the consensus process