Ripple Fundamentals

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What many people don’t know is that ripple is not just a currency but a platform as well. Ripple’s protocol is open sourced and is designed for faster and cheaper transactions.

Ripple might one day rule international transactions, who knows? Because currency exchanges might soon disappear like Blockbuster stores.

The platform also has its own currency (XRP) and it allows anybody to use the platform to create their own via Ripplenet.

What Is Ripplenet

Ripplenet is a network constituting of institutional payment providers like banks and other money service businesses which use solutions established by ripple to deliver a smooth experience in sending money globally.

For instance; first, we have Mr Jack, a New Yorker who has a box of chocolate he doesn’t need. He, however, is in dire need of a ticket to watch a basketball game. Second is Ms Smith who lives in Los Angeles and has a rare stamp that she is willing to give away for a chocolate box. And lastly, we have Mr Jones who lives in Alaska and is very much looking for a stamp and happens to have a ticket to a basketball game in New York.

In the traditional system, the three would probably never meet and they would remain with their invaluable items. But in Ripple, one could just say, ‘I have a ticket to New York baseball, I want a stamp’ and the system looks for the cheapest and shortest combination.

But the platform is not just about combinations, it also allows for payments to be made in any currency, bitcoin included and has a minimal transaction fee of $0.00001%.

What Is XRP

XRP is a token which functions to represent the transfer of value within the Ripple network. Its main role is to be a mediator for other cryptocurrencies and fiat exchanges. Think of it as a joker card. The card can be used to act as any other card. So if you want dollar to euro, it can be dollar to dollars or even euro with euro. The point is, it minimizes the commission cost.

Who Created XRP

The protocol emanates from way back in 2004. But its history begins in 2013 when Jed McCaleb, an entrepreneur invited a number of world rank investors into ripple labs.

McCaleb is also a well-known programmer and has co-founded a number of startups like Ripple, eDonkey, Stellar, Overnet and Mt.Gox cryptocurrency which he sold and platform recoded.

Chris Larsen, an angel investor, privacy activist and business executive who is considered the richest in the cryptocurrency space also had a hand in the rise of the cryptocurrency. He is famous for co-owning several startups in online financial services from way back in 1996.

What Is Ripple Protocol Consensus Algorithm (RPCA)?

It might sound strange that ripple has no Blockchain. What qualifies it to be a cryptocurrency when Blockchain is missing? How does it validate transactions and make everything ok? Ripple instead, has its own original technology known as the RPCA (Ripple Protocol Consensus Algorithm).

The meaning of Consensus is that when every node is in agreement, there is no issue. If one doesn’t agree, then nothing can be done.

A significant advantage with the Ripple currency is its fast international transactions which take 4 seconds in comparison to Bitcoins which takes up to an hour and regular banking system taking several days.

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