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Ripple Destination Tag 

 July 19, 2021

By  Brian Forester

Are you aware of Ripple? If you are not, we are here to solve this problem. We believe that this is important to discuss technologies other than blockchain, an example of which the Ripple system is. But Ripple is not going to be the main focus of this article. We will discuss the way to send assets from account to account safely or destination tags in detail: what the destination tag is, why you do need a destination tag, and where you can get your own destination tag. We are sure that it is important to support an article, helpful for those who want to get acquainted with some peculiarities of the exchange in the crypto world.

The Idea Of Ripple

First of all, let us try to understand what Ripple actually is.

  • Basically, when we say “ripple,” we do not only refer to cryptocurrency. Into this term, special technology is included. This technology was initially created to help banks provide safer and faster transactions. Their main competitor in the field of dealing with banks is the Swift company.
  • The Ripple technology is not a bitcoin fork, and this is why, in some sense, this is a unique product. It is not that easy to find crypto nowadays which are not based on blockchain.
  • But, besides bank transactions “catalyst,” this is also a cryptocurrency. Of course, a typical user might choose other currencies for the exchange, but it does not mean that these other currencies are times better than Ripple.
  • Ripple XRP is the internal currency of the initial Ripple system, used for transactions in the banks. Each transaction is known to be quick, and no additional payments are expected. On the Ripple page, you can notice that it uses a different protocol. Thus, we guess attacks faced by bitcoin will not work here.

But let us not delve too deep into the work of this system and change the direction of this article, helpful for those interested in the exchanges, to the destination tags.

Destination Tag: What Is It?

A destination tag is a unique identifier, a code, a reference number, so to say, commonly used by the exchange platforms to ensure the safety and accuracy of crypto transactions. Depending on the platform, this number, or code, or, better say, its “appearance,” can differ. For example, the Ripple XRP destination tag is a nine-digit code. Customers get this code generated by themselves and have it assigned to their wallet address.

This is a smart feature, according to which a sender, once received a destination tag, has to ensure its safety — a lost destination tag is a useless destination tag. To send funds and perform payments, a person has to enter this destination tag so that the money was not lost in the general mass of assets on the exchange.

In other words, if you do not enter a destination tag when it is required, a recipient might not receive a transaction because this transaction will go to the common funds of the exchanges. Before making a deposit, you have to ensure that you managed to enter the correct destination tag. If the ripple xrp destination tag you entered is wrong, you will send funds to the wrong address.

A popular practice is sending a small number of funds from your deposit address at first to determine if you succeeded in entering the correct destination tag and that the address of the recipient is right as well. This process is quick, but it is helpful to protect your deposits from sending them to the wrong accounts.

However, the platform might not ask you to write down the destination tag — this is a common feature for the majority of services (to require a tag) because this is a matter of privacy and safety. Still, in some cases, you can find platforms that do not need a tag: you can always check if the tag is required on the site of the service.

Types Of Destination Tags

There are several key types of a destination tag for Ripple XRP. Among these are the following:

  • One-time destination tag: this is a tag generated to send funds directly by the user.
  • Direct destination tag: a tag used for sending assets assigned to the wallet to match the user and the wallet.
  • A destination tag in the form of quotes: a debatable destination tag, which’s validity is limited.
  • Source destination tag: a tag used to get the payment back in case of a refund.

Anyway, the core idea, standing behind the Ripple XRP destination tags, is that it allows people to use one address for the payment to arrive.

The Final Word

We hope that we managed to create an article helpful for those interested in the nature of the Ripple XRP destination tag. Its function is to strictly determine the path of the deposit from account to account, from the wallet to the wallet, so that a person (or a company) which receives the asset could easily find who should be credited for the transaction.

In some sense, this is an answer to the question, “how can we make buying and trading cryptocurrency even more safe and quick?” Such a “closed path,” created via the destination tags, is a support of the responsibility among the traders, attempting to make people take care of the deposit they send from the wallet.

FAQs

What is the destination tag in Ripple?

A destination tag in Ripple is a code, a number, required to identify the account on which one wants to send deposits. It is usually ascribed to the wallet, and it helps people to understand who must be credited for sending assets. This feature also allows the trader’s deposit to stay safe since the deposit will not go somewhere in the general mass.

Does XRP need a tag?

XRP transactions do not require a tag because the sending goes directly to a specific account, and there will not be much help from it.

Can I send XRP without a tag?

In some cases, a tag is not necessary, but there are also situations when if you do not write the code down, the sending will go to the “public wallet” — a common exchange account.

Brian Forester


Brian is an experienced journalist and crypto enthusiast. Founder of CryptoCurry - famed for his insightful input on the future of cryptocurrencies and blockchain technologies.

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