Ripple (XRP) is a cryptocurrency created by Ripple Labs, headed by Ryan Fugger. In the form under which we know this project today, it has been operating since 2012. However, its roots date back to 2004, when Fugger began work on a decentralized payment system that saw the light of day as RipplePay. It was only after 8 years that he introduced the cryptocurrency to the market.
The main task of Ripple is to support financial institutions around the world in fast and at the same time cheap transfers around the world. We can say that thanks to its functionality, this cryptocurrency is an answer to the biggest current problems of banks.
It is characterized by a greater transaction throughput than bitcoin, and allows easy integration with currently existing banking systems. Today Ripple is used by m.in. by UniCredit, Credit Agricole, UBS or Santander.
What’s noteworthy Ripple can not be mined. The total number of coins is 100 billion, but 70% is controlled by the creators. Every month, another billion coins pass to the market. This allows investors to predict the supply level of cryptocurrency. Since the project did not include miners, so how does the whole work in practice? Explanation of this process is even simpler than in the case of bitcoin blockchain. Imagine that a client of a bank in Warsaw using Ripple wants to send cash to his contractor from New York. To do this, he only needs to log in to his bank account and select the recipient. Later, the banks communicate with each other directly through HTTPS, to determine the risk and to ensure the compliance of the transaction. The Ripple network is not decentralized and distributed.
Ripple Labs itself emphasizes the main features of its system:
1) Distribution: banks can communicate with each other without indirect contact
2) Security: transaction privacy
3) Scale: high level of processing
4) Compatibility: Ability to connect multiple networks together.
The official website of the project: https://ripple.com