Tag: XRPL

​In the XRP Ledger (XRPL), a Destination Tag is a unique identifier used to specify the recipient or purpose of a transaction when multiple users share a single XRP address. This mechanism is particularly vital for exchanges, payment processors, and businesses that manage funds for numerous customers under one address. By assigning a distinct destination tag to each user or transaction, these entities can accurately route incoming payments to the appropriate accounts within their systems.​

Destination tags are 32-bit unsigned integers included in transactions to indicate their specific purpose or recipient. For instance, when sending XRP to an exchange, the destination tag ensures that the deposited funds are correctly credited to your individual account on that platform. Omitting or using an incorrect destination tag can lead to delays or misallocation of funds.

To enhance user experience and minimize errors associated with destination tags, the XRPL community introduced the X-address format. This format combines the classic XRP address and the destination tag into a single, encoded string, simplifying the process of sending funds and reducing the risk of mistakes.