What is Ripple and XRP

in #bitcoin7 years ago

The Ripple Transaction Protocol is a real-time settlement system designed to be used by banks for currency exchange, remittance and gross settlement. The idea is to replace age old systems like SWIFT - which was developed in 1972 and used by most banks today. The Ripple protocol offers significant advantages in both speed of transfer and transfer tracking. Ripple uses distributed ledger technology, similar to Bitcoin. When compared with Bitcoin, it is faster and cheaper to send on the ripple network. However, there is one significant trade-off which is its lack of decentralization. The Ripple network is closed off and cannot be joined by any user - meaning there is a significant amount of centralization.

One point of common confusion is that the Ripple protocol is frequently confused with the currency XRP (also named Ripple) issued Ripple Labs. The XRP is an issued token that uses the Ripple network - it can be sent extremely quickly and with low fees. However, it should be noted that the XRP is not required for the network to work nor is it required for banks to use it if they choose to adopt Ripple.

You can buy Ripple (XRP) on Binance - https://www.binance.com/

Ripple Currency (XRP) vs the Ripple Protocol
So lets start off with one confusing factors. So I must make a distinction between Ripple the transaction protocol (which is used between banks and other businesses) and the ripple issued currency, XRP. When you see Ripple making gains its actually the XRP, the currency that is issued by Ripple, that is gaining. And this is actually quite different from the network protocol or Ripple protocol. Both share the same name and I’m sure this has definitely confused a lot of investors.

Ripple Protocol
So lets start off with the transaction network known as Ripple. So the Ripple protocol is based on technology that's similar to blockchain but not completely the same. It doesn't require any mining and its based on a consensus network instead of being consumer-facing which is what Bitcoin is. Basically, it's for the everyday person.

Ripple is exclusively used by big institutions such as banks. The whole idea of Ripple is to allow banks to transfer any sort of asset, be it currency, USD, Euro, gold, or any other asset such as airmiles. You can transfer that between other institutions near instantaneously. This rivals systems such as swift. So if you ever bought Bitcoin with bank transfer you will know how painful that is. You have to contact your bank and send the transaction to a swift bank code account and this might take up to two to three days and theres a lot of transaction fees involved for both the sender and the receiver. Ripple is set to revolutionise this by providing near instantaneous, sub-second transactions for institutions such as banks. It’s already been adopted by quite a few big banks and

XRP - Currency of the Ripple Network
So now that I explained what is the Ripple transaction protocol, let’s move on to Ripple XRP. XRP is actually issued by Ripple Labs and is a form of cryptocurrency that can be traded and it’s not “mined”. So there is a finite number of ripples and that amount is actually issued by the company behind Ripple called Ripple Labs. Currently, it is freely tradable on numerous exchanges such as Poloniex.

XRP by itself has no underlying related assets or values eg. Its not tied to USD or gold. Rather, it can be used to act as an intermediate currency in institutions. It has one huge advantage in that transaction costs are very, very low (unlike Bitcoin, which is now reaching 1.5 usd in transaction fees).

Concerns about Ripple
So moving on, XRP is currently only issued out at less than 40% of its total. The remaining amount (minus the 20% retained by the creators of Ripple) is held by Ripple Labs to distribute whenever and however they so wish. This is actually kind of interesting because unlike a lot of decentralized currencies, Ripple Labs plays a huge part in distributing XRP. Ripple Labs is actually a company and this is very different from Bitcoin, where Bitcoin is fully decentralized and doesn’t have a central controlling authority. Ripple Labs is registered in many countries and it could be sued and held under police custody. This is again very different from other technologies.

So that’s a little information regarding the Ripple protocol and XRP. I’m sure this may be a little bit confusing for some people and since the technology and the currency share the same name it could be misunderstood. I hope this clarifies a little for you about what Ripple protocol is and what XRP is.

You can buy Ripple (XRP) on Binance - https://www.binance.com/

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great article. I believe that knowing that confusion, many people wouldn't have invested. People invest in ripple because they think banks will have to buy loads of XRP, pushing the price up.

When I heard ppl saying xrp/btc flippening, I knew it was time to sell. Ive been through this many times lol Ppl don't realize that xrp has been number 2 ealier this year and Ethereum almost overtook btc market cap too. When ppl start saying another coin is the new holy grail it's time to sell hahaha Ive been doing this too long

Opportunity?

How to turn $5000 into $1 million in 24hrs if history repeats?

" I smell another Mt. Gox affair, this time being XRP!"

Just in case there is a flash crash again within another company of Ched's ?

I am Selling all my XRP at $4 hopefully any day.

I have set ladder down buys on XRP at
$100 bucks @ 3 cents,
$500 bucks @ 2 cents,
$1400 bucks @ 1 cent
$3000 bucks @ .005 cents

@boxmining

First of all thank you for chiming in on XRP.

I will start off and admit I am NOT a fan of XRP aka RIPPLE.

Not my style...

Without spreading FUD (fear uncertainty doubt) I prefer STEEM any day before I invest into XRP (RIPPLE).

XRP can go to $1000.00 and I would not buy, sell, or trade it!

PERIOD!

Just being Frank

Why is it that you don't like XRP?

I tell you what...

Tell me what you LIKE about XRP?

Thanks for the explanation. I hated Ripple for the longest time but with all the drama at the Crypto Community (BTC vs BCH ie) maybe decentralization is not as feasible as we thought.

Ripple is just another company offering a product. As long as they dont resort to shady tactics (like dropping too much of their XRP on the market) I don't think they deserve the hate they get.

FUCK Ripple! I like the effort in your writing, keep it up. Fuck Ripple!

Why does that comment only have 3 Upvotes? One coin xrp out of how many now, 16 hundred’ish.. is designed specifically to benefit centralized banking and that one coin is 2nd on coinmarketcap. Wtf?!

That’s exactly what it is. Ripple could go to $20 or $2000 a coin and guess what? Fuck Ripple!

your post is very interesting.
but I want to ask you, how do you think about the development of 2018 bitcoin price in the future?
I just want to survey some people

3 Major Japanese Credit Card Companies just signed a deal to use the Ripple technology for there platforms last week.

Ripple has landed over 100 deals with companies this year.

Ripple can easily be a $3 or $4 coin in the next month.

It doesn’t matter if it went to $3000 or $4000 a coin XRP will ruin our lives if u let it. It is not a cryptocurrency for the common people or something any of us who believe in freedom should support, not even for a second. Fuck Ripple/XRP and everything it stands for, it’s just more of the same and we (freedom lovers) are not for it.

Amazing post my Friend... Bitcoin is great coin... carry on my friends..