Can You Really Use the XRP Ledger Without Internet? Ripple CTO Explains

Recently, speculation erupted in the XRP community that the XRP Ledger (XRPL) has offline capability to process XRP payments without the internet.

Promoters of this view include community member “SMQKE,” who presented at least three pieces of “evidence” of XRP payments conducted offline. They were demonstrations of payment systems where users could access their XRP balance and even make transactions via offline channels such as SMS.

One cited example involved iBonus’ offline payment for retail CBDC, which used QR codes and Bluetooth Low Energy for transactions without the internet. This mobile payment solution leverages the XRP blockchain for secure, traceable payments.

Additionally, an XRPL.org blog post featured Mandla Money, highlighting it as a wallet service that facilitates the sending, receiving, and storing of digital assets through SMS, bypassing the need for smartphones or internet access.

These examples of offline payment solutions led SMQKE to suggest that the XRPL indeed has support for offline functionalities. However, prominent figures in the XRPL developer community have come forward to disprove the claim as it has gained traction in the community.

XRPL Has No Offline Capabilities 

Vet, an XRPL dUNL validator, asserted that the XRPL lacks offline functionality. He clarified that Mandla Money uses destination tags just like crypto exchanges. He noted that this method does not move funds on the blockchain but rather adjusts users’ XRP credits based on their tags.

Furthermore, Vet mentioned that even if Mandla Money were to implement a system that moves funds on-chain in response to SMS or Bluetooth triggers, it would still require online activity. Besides, he noted that such a mechanism is not unique to XRPL and could be replicated on any blockchain. 

The XRP Ledger has no offline capabilities. Zero.

Even xPOP is a mathematical proof (Merkle Proof) that a transaction happened – online -, without checking it.

Mandla uses destination tag like any other exchange, which means its one wallet just divided by destination tags,…

— Vet 🏴‍☠️ (@Vet_X0) May 15, 2024

Similarly, Wietse Wind, founder of XRPL Labs confirmed that the XRPL itself does not support offline transactions. He acknowledged that while offline verification of validations is possible with the correct data, any device conducting transactions must have a connection to an online entity. In essence, internet access is required at some point in the transaction process.

Ripple CTO Agrees

Ripple CTO David Schwartz concurred with Wind’s assessment. Schwartz noted that for a transaction to occur on the XRPL, it must be transmitted to the internet somehow. He clarified that so-called offline transactions on the XRPL either do not actually occur on the ledger or must involve an intermediary with internet connectivity.

This is correct. Ultimately, if a transaction is going to take place on XRPL, it has to get to the Internet somehow. Offline transactions either don't take place on XRPL or involve some component with Internet access somewhere in the flow.

— David "JoelKatz" Schwartz (@JoelKatz) May 15, 2024

Despite these clarifications, SMQKE continued to stir the conversation by presenting a video claiming XRPL transactions could be conducted via radio waves and satellites without an internet connection. 

Vet responded by clarifying that SMQKE is conflating XRPL’s inherent features with third-party applications that act as intermediaries to initiate online transactions.

Vet used an analogy to illustrate his point, comparing the situation to training a parrot to input a PIN code for a transaction. He rhetorically asked if this would imply that the XRPL is now ‘Parrot enabled,’ highlighting the falsity of claiming that the ledger itself has offline capabilities based on such indirect methods.