Ripple is a global settlement system. It has its unique features that distinguish Ripple from other cryptocurrencies. Ripple does not use the blockchain, which is a basic technology in most cryptocurrencies.
What is Ripple? System features
The basis of the Ripple system is in the form of a distributed database, which stores all data about accounts and transactions of the users. Thus, the RPCA protocol uses Ripple protocol consensus algorithm. The ledger is updated every few seconds, and it is called the LCL — Last Close Ledger. Ledger copies are stored on the network servers, which are also called nodes. Ripple allows users to transfer money to one another in any world currency and even precious metals such as platinum, gold, silver.
With the external world, but rather with shops, exchange offices, the system interacts through the so-called "gateways." Anyone who wants to make a transaction should submit a gateway to money through bank cards, electronic payment systems. Furthermore, you can exchange money for any currency in the world. The system does it at the most efficient rate.
Ripple allows users to transfer money to one another in any world currency and even precious metals such as platinum, gold, silver. Moreover, the transfer takes few seconds.
The platform has an internal currency - XRP. All the coins were released at the start of the project. Its number is 100 billion tokens. And only about 7 billion XRP have been distributed among users during the lifetime of the system, more than a half remained in control of Ripple Labs. Since all coins were issued initially, it is impossible to mine Ripple.
While traditional cryptocurrency is focused on ordinary users and aims to become an alternative payment system, Ripple, on the contrary, is actively integrating into the banking industry. The primary customers of the system are big banks and financial institutions, as their system offers the best ways to transfer money worldwide.
Ripple from the very beginning
The beginning of the project was in 2004. Then Ryan Fugger, an excellent programmer from Canada, began working on the Ripplepay payment system, which was launched in 2005. Due to lack of funding Ripplepay hasn’t received wide popularity in the Internet community.
Later Fugger meets Jed McCaleb, which is known as the Creator of the file-sharing network eDonkey. In 2011, they completely refreshed the system, borrowing the idea of decentralization from bitcoin.
The first significant success was the cooperation with the German Bank Fidor in 2014. After that, Ripple drew the attention of other major players in the financial world, in particular, WesternUnion.
In 2016, the company managed to attract investment to $55 million. In early 2017 Ripple signs a contract with the National Bank of Abu Dhabi, which operates in 17 countries.
In Ripple Labs today, there are more than a hundred highly qualified employees. The head of the company is Brad Garlighouse.
How to buy cryptocurrency?
Users can purchase XRP by using exchange offices. However, there are not many proposals remained.
Where to store Ripple?
Earlier it was possible to create purses to save your coins in Ripple Trade. But the company doesn’t use it anymore. Now users create their accounts on GateHub.
Besides, the company Ledger offers a hardware wallet for storage. In addition to the XRP device supports such well-known cryptocurrency as Bitcoin, LiteCoin, Ethereum, Zcash for others.
The main system advantages
The system developers claim that their main goal is to allow users to fully control their funds and make payments between different countries with minimal cost in a matter of seconds. According to them, the money exchange should occur at the same rate as the exchange of information.
The main Ripple pluses:
- the high speed of transactions in the network;
- security payments;
- the ability to work with different currencies;
- paltry fees;
- deflationist native coins, which after payments are destroyed.
Cryptocurrency capitalization today is almost $8,5 billion. And this is at a price of 20 cents per coin.