What is Ripple?
If we consider Bitcoin or any other cryptocurrencies as some kind of “transaction languages” in the world, then Ripple exactly is an “interpreter”. To be more specific, Ripple has become a “worldwide language” by using the unit of XRP and being able to handle the situations occur when using “different languages” in transactions all over the world - even though it has not been popular that much, but it has lots of potentials.
Besides, the world’s financial system nowadays - a system which was designed several decades ago - is still going on an old path in making transactions, leading to the fact that it is being left behind in the rapid changes of the world’s economy. And Ripple was born to solve those remained problems. So, to have a better view of Ripple among this Crypto universe, let’s have a look at the below article.
WHAT IS RIPPLE
Being created based on an internet protocol decentralized open source code, Ripple is a Real Time Gross Settlement payment system (RTGS). At the same time, it is a network of currency exchange and money transfer using Ripple, also called Ripple Transaction Protocol (RTXP).
This is a product of Ripple Inc. – a startup based in San Francisco (USA) using the Blockchain technology in order to increase the speed of transactions between major international banks in the world. Ripple’s core is based on a data sharing loop or a ledger, using the process of consensus algorithm which allows payments, transactions, and money transfers to be done really fast with extremely low costs.
With Ripple,fees and waiting time of transactions will no longer be problems
HOW RIPPLE WAS MADE
Ripple and Ripplepay’s protocol was first developed in 2004 by Ryan Fugger – a website developer in Vancouver, British Columbia, Canada. Fugger thought of this idea when he was working with a local exchange system. Fugger realized that an international payment transaction between banks in the world was now facing a lot of problems. It could take several days to be completed, bearing extremely high intermediate’s fees or interest rate, the procedures are dragging out and even customers’ information is always at risk of being exposed. Therefore, Fugger came up with the idea of creating a decentralized money system and allow individuals as well as communities to create their own currency.
Ripple’s beginning was a startup project which had its venture capital in San Francisco. This project was expanded with its today’s offices in Newyork, London, Luxembourg, and Sydney. In August 2012, after discussing with perennial members in Ripple’s community, Fugger gave the control of Ripple to McCaleb and Larsen, who later were founders of the OpenCoin Inc.
Ripple’s protocol from there was designed by the OpenCoin company – with Chis Larsen is CEO and Jed McCaleb is CTO. OpenCoin started to develop a new payment protocol called Ripple Transaction Protocol (RTXP) based on Ryan Fugger’s concepts. Among OpenCoin’s initial investors, there is Google Ventures included. Therefore, Ripple is said to be a quite safe coin as it has a great support from Google.
Ripple receives considerable support from Google
On 02/07/2013, the company announced the link between protocols of Bitcoin and Ripple through Bitcoin bridge. Bitcoin bridge allows Ripple’s users to send the payment in any currency to the Bitcoin’s address. On 26/09/2013, the OpenCoin company changed its name into the Ripple Labs company. And in the same day, Ripple became a free software which was established under an open source code form under ISC’s terms.
FEATURES – DIFFERENCES FROM BITCOIN
Ripple authorizes users to be able to “make safe, immediate and almost free international financial transactions in any sizes without being returned”. It also supports token which represents fiat money, cryptocurrencies, goods or any unit of value. Ripple based on a shared database or a ledger, using the process of consensus algorithm which allows payments, transactions, and money transfers in a decentralized process.
Moreover, Ripple can avoid high fees or really long transaction time problem of traditional bank system, help users be able to use bank services with the lowest costs, shortest time and bring about the highest effect. At the same time, Ripple also provides the resolutions for major international banks in all over the world.
Even when OpenCoin collapses, the Ripple network can still continue working without being dependent. The Ripple company issued 100 billion XRP, a half of that is in circulation and the other half is held by OpenCoin itself.
Other cryptocurrencies, even Bitcoin, are rejected by traditional bank system due to their uncontrollable feature and their competition in transaction fees. However, Ripple is supported by banks and plays a connection role between today’s bank system and cryptocurrency’s Blockchain technology.
Beside of Google, Ripple also receives the support from worldwide banks
KEY DIFFERENCES FROM BITCOIN:
- Definition: Bitcoin is a cryptocurrency based on the world’s first peer-to-peer network protocol. Ripple is a decentralized Internet open source code protocol in a general ledger.
- Type: Bitcoin is cryptocurrency, Ripple is a decentralized money exchange payment system
- Issuing day: Bitcoin was issued on 03/01/2009, Ripple was first developed in 2004, issued in 02/2013.
- Issuer: Bitcoin was founded by Satoshi Nakamoto, Ripple was issued by Chris Larsen and McCaleb.
- Unit: Bitcoin – BTC, Ripple – XRP
- Total Supply: Bitcoin has accumulated 21 million coins, Ripple has accumulated 100 billion XRP
- Algorithm: Bitcoin using SHA-256 algorithm, Ripple using RTXP algorithm
- Mining: Bitcoin can be mined by GPUs, FPGA or ASIC, Ripple cannot be mined for more.
Ripple and Bitcoin – the key differences
Ripple made a great impression with its venture capital during its starting phase. This startup altcoin has Google as a godfather and it has successfully drawn over 50 million of USD from bank institutions, bring about USD90million total capital.
Furthermore, Ripple has a unique feature as it allows transactions in any unit of value, from fiat money to equal values of cumulative points.
With a growing community of users, the favor from major mainstream banks in the world, it is not difficult to realize that this is a quite safe and profitable investment choice.