What is Ripple

what is ripple

What is Ripple? Technically speaking, is Ripple an identical cryptocurrency to Bitcoin? The answer is probably “no”, but that doesn’t prevent it from being often put in the same category.

Of all the digital assets on the market, XRP is the one that continues to turn heads. The value of digital assets rose from $ 0.006 in January 2017 to $ 3.60 in early January 2018, an increase of over 59,000%. Ripple is now one of the largest startups in the United States, after Uber, Airbnb, Palantir and WeWork …

Ripple, so it’s 2 things:

  • XRP is a cryptocurrency
  • Ripple is a startup that provides secure and fast solutions for international money transfers

Ripple’s [software] services:

  • xCurrent. A software solution that allows banks to instantly settle cross-border payments with end-to-end tracking. xCurrent is currently used by Santander and American Express in particular.
  • xVia. A simple API for businesses, payment service providers, and banks who want to send payments over different networks.
  • RippleNet. Decentralized global network of banks and payment providers using Ripple’s distributed financial technology. Current members of RippleNet have over 200 members, including a few well-known banks such as UBS, RBC, UniCredit, Standard Chartered, etc.
  • XRP. Digital currency that offers banks and payment providers a reliable, on-demand option to obtain liquidity for cross-border payments
  • xRapid (On-Demand Liquidity). For payment service providers and other financial institutions who want to reduce their liquidity costs while improving their customer experience.

Below, the price of Ripple XRP / USD

1 XRP = USD 0,241

+1,26 %

XRP is a digital asset specifically designed for financial institutions initially

Many digital assets don’t have a specific purpose. They can be used to store value, buy goods or for transactions with consumers, but they were not created with a single explicit application initially. In contrast, XRP is specifically about money transfer and was designed for businesses initially, making it one of the few digital assets with a real purpose of use.

Ripple is also a payment / funds transfer service that mainly caters to financial institutions

The Ripple network itself has the ability to move assets around the world and in record time.

Banks can use Ripple technology to transfer money between different foreign currencies. Currently, this is usually done using SWIFT, a cumbersome system that relies on banks having separate accounts in each country where they work. Ripple announced that it has signed contracts with more than 100 banks (compared to SWIFT’s 11,000 financial institutions), including with American Express.

XRP is the most scalable digital asset

XRP is the fastest and most scalable digital asset. Its six years of experience with reliable technology and governance make it ready for institutional and enterprise use. Since its inception, all registers have functioned without problems. For information, the XRP ledger processes 1500 transactions per second, 24 × 7, and can evolve to handle the same debit as Visa. This is data to date, in the coming months the performance of the Ripple system will of course change to be able to process more and more transfers per second.

While other digital assets struggle to establish a strong use case, XRP is the best digital asset for payments – ultimately enabling the Internet of Values.

It acts as a bridge between fiat currencies (a big plus)

Some digital assets, like Bitcoin, aim to replace existing government-backed currencies. XRP works with currencies on more than 10 digital exchanges to help transfer cross-border value quickly and efficiently. For example, a Mexican company that wants to pay a supplier in Korea today would either have to pre-finance an account in Korea or go through a foreign exchange operator like a bank. Both options are expensive and slow.

With Ripple XRP, the company’s Mexican bank or local payment provider enables the company to make payment instantly and on demand. With no account pre-funding or foreign exchange fees, XRP enables faster and cheaper settlement.

Faster, cheaper and more reliable cross-border payments

Ripple provides banks and payment service providers with a reliable, on-demand source of liquidity for cross-border / international payments. Today, it takes about three to five days to send money from one country to another through a bank, which usually involves high fees and the risk of the payment taking a long time (or never passes completely). Alternatively, companies can pre-finance accounts in the recipient’s country, which ties up capital. XRP is part of a solution that solves all of these flaws, with an average settlement time of 4 seconds, at a low cost of a few tenths of a penny per trade. By enabling financial institutions to obtain liquidity on demand, in real time, without having to pay foreign transaction fees or nostro account pre-funding, XRP helps them enter new markets, reducing foreign exchange costs. and expedite the settlement of payments.

A global payment network solution

Ripple is committed to solving the problems of cross-border payments, creating “real added value” and moving money as efficiently as possible.

Our solution is to create a common standard for payments, and to use XRP as a digital asset that will bring together currently disconnected ledgers and blockchains.

— Ripple

Who invented Ripple?

The history of Ripple begins long before the creation of the start-up in 2012. Already in 2004, a certain Ryan Fugger seeks to develop a decentralized payment solution. His project, Ripplepay, is taken over by Jed McCaleb who established the Ripple Protocol and founded the OpenCoin company with Chris Larsen, David Schwartz and a few others. The company changed its name to Ripple in 2015, three years after its inception.

Ripple’s blockchain technology

Ripple’s blockchain technology is winning over more and more financial institutions, banks, and the attention of governments. Ripple’s solutions based on blockchain technology are known to be effective.

XRP is moving faster than bitcoin

Bitcoin can process up to seven transactions per second, each of which can take over two hours to complete. Compare that to a traditional payment service like Visa which averages 2,000 transactions per second and you can see that Bitcoin lacks the scalability to meet typical customer demands.

How is Ripple Fundamentally Different from Bitcoin?

It’s the validation servers and the consensus mechanism that lead people to assume that Ripple is blockchain-based technology. Although it is consensus-driven, Ripple is not a blockchain. Ripple uses a HashTree to summarize the data into a single value which is compared between its validating servers and provides consensus.

The Ripple solution is suitable for banks, and therefore competes with widely used fund transfer systems such as Swift. The solution is made for financial companies, and while it can be used person-to-person, that is not its primary purpose. The main objective of the Ripple platform is to facilitate international money transfers, to reduce transfer fees drastically (reduced to a few cents) and to offer processing speed to a few seconds (for thousands of transactions made simultaneously).

So far, Ripple has been stable since its release with over 35 million transactions processed smoothly (figure recorded in 2017). It can handle 15,000 transactions per second (tps) and has been updated to meet Visa’s levels of 50,000 transactions per second. By comparison, Bitcoin can handle 15 tps (not including the scaling layers).

Can we mine XRP?

Ripple’s currency: XRP, is not mined like Bitcoin, Ethereum, Litecoin, and many other cryptocurrencies. It was made available at its inception, similar to how a company issues stock. It should be understood here that the total volume of XRP is limited (like a company’s stock). Ripple cannot be mined, understand here that no one can create XRP like Bitcoin and other cryptos do.


The XRP ledger is where XRP transactions occur and are recorded. It is an open-source codebase that is supported by a community of trusted validators and a team of full-time engineers who actively develop and maintain the registry.

From day one, we made the XRP ledger more resilient to a single point of failure by decentralizing it, a process that continues today.

— Ripple

XRP is more durable than mined cryptos, like bitcoin

Bitcoin is a mined digital asset, which means new coins are constantly being created by huge, complex mathematical or “proof-of-work” data processing centers. Massive amounts of electricity – the cost of producing a coin could power 3.67 American homes for a day – and has been called “unsustainable.” XRP is not a mined digital asset so every unit of existing currency has already been created, most is owned by Ripple (of which $ 55 billion has been placed in escrow) and the rest is owned by corporations and individuals.

The future of XRP

It’s about WHEN, not IF, banks and other financial institutions will begin to use digital assets in their day-to-day operations. It will then be interesting to see who the winners and losers are in the digital asset space. We believe XRP will be successful because it has one purpose – to enable financial institutions to send money across borders quickly, cheaply, and easily – which is relevant to businesses and consumers everywhere. world.

Easy to buy

There are different ways to buy XRP depending on who you are. If you are a financial institution, it is best to contact Ripple directly. If you are an individual investor, you have several ways to buy – you can visit any of the digital platforms that sell XRP and do it that way.

Some questions that come up from time to time:

So why all the hype?

While Bitcoin saw a dramatic rise in price during late 2017 to early 2018, the cryptocurrency nearly surpassed the value of $ 20,000. As the price rose, we saw a massive increase in the values of a large number of altcoins, with Litecoin dropping from $ 50 to almost $ 400, double for Ethereum, NEM, and EOS all saw a ten-fold increase. five of their value, and the list goes on. The fear of missing out on a GOLD opportunity has driven many investors crazy, and “cheap” currencies attract new investors who mistakenly think the high price of BTC (bitcoin) puts them out of reach.

Rumors have been circulating on social media since December 2017 that the Coinbase trading platform is going to add Ripple, which has pushed the price up! This got Coinbase to think about it and it is being told that there have been negotiations between the two entities.

Be careful though

There are a lot of reviews on Ripple. Bitcoin and other blockchain enthusiasts complain that Ripple’s centralized control is in direct opposition to the ideals and benefits of decentralized blockchains like Bitcoin.

Ripple also maintains a trusted Unique Node List (UNL). It’s the UNL that controls the rules of the network, presenting a conundrum: On the one hand, it protects against problematic validators, but, in theory, a regulator or government could come in and force a change that doesn’t. is not necessarily desirable or downright intrusive. Additionally, due to a FinCEN violation and fine in 2013, Ripple has updated its policies and will only recognize and recommend gateways that comply with financial regulations.

New York Times reporter Nathaniel Popper commented on Twitter several months ago that he had yet to find a bank that plans to use XRP in any meaningful way. Ripple CEO Brad Garlinghouse had denied Popper’s claims, saying, “Over the past few months I’ve spoken with banks and actual payment providers. They are indeed planning to seriously use xRapid (our XRP liquidity product).

This is obviously the case today for more than a hundred big banks all over the world!

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