Ripple Explained | What is Ripple?
Ripple is the name for both a cryptocurrency (XRP) which is a digital currency. Ripple is an open payment network within which that digital currency is transferred. It is a distributed, open-source payments system that’s still in beta.
The goal of the ripple system, according to its website, is to enable liberate consumers of the traditional financial networks – ie, credit cards, banks, PayPal and other institutions that restrict access or require conditions to be met to receive the service with fees, charges for currency exchanges and processing delays.
Ripple Explained | What is Ripple supposed to do?
OpenCoin, the company that has developed ripple state that the currency addresses the need to keep money flowing freely. A company blog post titled “Ripple and the Purpose of Money” gives a brief history of money and its transportability, and points to the frustration of having banks and other institutions impede the transfer of funds with transaction fees and processing delays.
this article says that the goal of Ripple is to build on the decentralized digital currency approach set by bitcoin and do “for money what the internet did for all other forms of information.”
Ripple Explained | How would Ripple function like the internet?
Ripple’s chief cryptographer, David Schwartz, explains it like this:
“Payment systems today are where email was in the early ‘80s. Every provider built their own system for their customers and if people used different systems they couldn’t easily interact with each other. Ripple is designed to connect different payment systems together.” This is the brilliant part of Ripple as you will see that big companies lose their control over the flow of other people’s money just as they’ve lost control in the last couple of years over the flow of information.”
Ripple Explained | Who’s is then incharge and runs Ripple?
The company building the Ripple protocol is called OpenCoin. This company was co-founded
by CEO Chris Larsen and CTO Jed McCaleb. McCaleb is well-grounded in digital currency, coming from Mt. Gox, which currently handles the majority of the world’s bitcoin trades. Larsen previously co-founded and led the online financial company E-LOAN. Other developers on Ripple’s team also have a bitcoin background.
OpenCoin recently picked up a round of funding from Andreessen Horowitz, FF Angel IV, Lightspeed Venture Partners, Vast Ventures and the Bitcoin Opportunity Fund.
Ripple Explained | What is the Benefit of ripple for people that use Bitcoin ?
Ripple is giving Bitcoin more ways to connect with those using other forms of currency digital or not, Ripple promises expedited transactions and increased stability for all networks.
Being decentralized like all other cryptocurrencies does also make sure that as a distributed network, Ripple does not depend on a single company to manage and secure the transaction database.
As a result, there is no waiting on block confirmations, and transaction confirmations can go through the network much more quickly than with some other cryptocurrencies.
Ripple Explained | Is Ripple becoming Bitcoin’s rival?
Ripple does not look to replace Bitcoin but rather work with Bitcoin as a complement to Bitcoin. See it as the Robin to the Batman, just then in currencies. The companies Vision is nicely illustrated in their article” Ripple for bitcoiners.”
The main difference here is that the Ripple network is designed to allow the seamless transfer of any form of currency, regardless of type and country, meaning it will work with Usd, Yen, British Pounds but also with Crypto currencies like Bitcoin. Because this is all possible it will give the bitcoin users more gateways and easier ways to bridge bitcoin with the mainstream world of finance.
Ripple Explained | Is Ripple like Bitcoin?
In many ways, yes. Like Bitcoin, Ripple’s XRP unit is a digital form of currency based on mathematical formulae and has a limited number of units that can ultimately be mined. Both forms of currency can be transferred from account to account (peer-to-peer, or P2P) without the need for any intervening third party. And both provide digital security to guard against the possibility of counterfeit coins.
Ripple Explained | Why is Ripple described as “free(ish)” rather than free?
Ripple doesn’t collect transaction fees the way PayPal, banks and credit cards do. However, it does take “a small portion of a ripple (equivalent to ~1/1000th of a cent)” from each transaction. That amount is destroyed rather than retained. The deduction is meant as to safeguard against the system being swamped by any one individual who might try to put through millions of transactions at once.
Ripple Explained | How many Ripples will there be?
The company plans to ultimately create 100 billion ripples. Half of those are to be released for circulation, while the company plans to retain the other half.
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