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Ripple

Comprehensive introduction of Ripple

In the world of digital currencies (Cryptocurrency), you must have heard the name Ripple. Ripple, formerly known as OpenCoin, is a technology-driven platform for the development of digital currencies. And one of its products is the XRP currency code. Today at Ded9 we will give you a comprehensive and basic explanation of the history and products of Ripple. In the hope that this article will answer your questions about this digital currency.

What is Ripple?

Ripple is a private company that intends to facilitate monetary transactions in the context of banks and financial institutions. In other words, Ripple’s main goal is to provide a fast communication network for conducting financial transactions of banks or financial institutions in the world. So that more than 100 companies have chosen Ripple software as a secure way to conduct their transactions.

Due to Ripple’s international outbreak, its exclusive cryptocurrency, XRP, is the third most valuable digital currency in the capital market. This digital currency is not just for buying and selling. But in fact it is a token that is also for paying transfer fees in banks. In other words, you use XRP tokens instead of cash to pay for your banking activities.

Most platforms based on China blockchain technology, such as Ethereum, are protected by miners through a decentralized network. While the Ripple security process is provided by a set of authentication servers. In addition to a Ledger guarantees financial transactions on the Ripple platform upon public agreement.

All 100 billion ripple coins on the market have already been mined. But the Ripple Institute is constantly monitoring the distribution of new coins. XRP is currently worth $ 38 billion in circulation and will distribute more if needed to adjust its reserves.

Of course

financial transactions in the Ripple environment are not only subject to the XRP currency code. But also support unsupported currencies such as the dollar, yen and euro. So the use of other digital currencies such as Bitcoin and other common currencies such as gold and airline bonus tickets is also available in Ripple.

In the first place, Ripple is a processor of financial transactions and exchange of digital currencies. And its secondary mission is to introduce and supply the XRP currency code contrary to popular belief. Ripple is not limited to one digital currency and offers other products to users. he does.

In fact, Ripple does not intend to compete with Bitcoin or Atrium. Instead other credit and remittance systems such as Swift, ACH and Payoneer are Ripple’s fierce competitors. Ripple is equipped with fast and secure blockchain that has moved $ 155 billion overseas so far.

Ripple is 500 years old!

In the Middle Ages, there were no banks or financial institutions to ensure the security of the transfer of gold or cash. So you had to hire an officer to protect it. The transfer of money was such that in order to transfer money to another city. You had to provide a password to be received by someone in that city.

He then provided the cashier with the password to the money transfer agent, who sent the shipment and information to another agent in the city to deliver to the person holding the password. The most important issue that overshadowed this process was the trust of the agents in each other, in which case the transfer process would face difficulties.

Ripple works in the same way, linking moneylenders and making money transfer easier. In fact, Ripple algorithms discover the safest route for financial transactions, as another agent has added to the money transfer process, known as the gateway; Portals that are usually banks or financial institutions.

Of course, in theory, Ripple’s focus is not just on cash, but secure gateways include almost anything of value, meaning that you can send gold, cars, or food through your gateway, and so on. Receive them the same way through your private gateway.

In other words, Ripple’s ability is that it can be used to transfer anything of value, for example in Ripple you will be able to transfer multiple currencies (Multiple Currencies) simultaneously and the results of your transactions in the form of IOU documents will be sent immediately to Ripple Ledger.

History and Ripple Developers Team

Ripple officially started working in 2012, but the idea first came to the minds of its creators in 2004. In 2005, Ryan Fager launched RipplePay.com, China’s first digital currency maker Ballack, which provided users with many possibilities for online transactions, but did not become widespread in the community. Then in 2011 Ryan Fager, along with Jared McCulleb and Chris Larsen, decided to change the routine of extracting digital currencies, so they replaced the Mining system with Mining to approve transactions.

Ripple’s core protocol was for speeding up financial transactions by preventing users from wasting time and paying heavy fees and generating a new token called XRP to increase liquidity. By 2014, a project based on the transfer of funds from person to person and gradually attracted to banks to accelerate the process of transferring bank funds and minimize fees.

In 2014, several banks and financial institutions registered in Ripple and used its services on a trial basis, but every year more and more institutions use this technology, so that by 2017, more than 100 customers benefited from Ripple services. . Of course, it must be that Ripple is basically a private company that has achieved good growth through attracting investors. In addition, its revenue model is for providing highly specialized services and manufacturing products on the RippleNet platform.

Where is Ripple used?

In the age of stable communications, financial institutions still use 1970s technology to enact financial laws. Banks pay hefty fees to transfer $ 150 trillion, which usually take days, so the lack of development of Internet portals has clouded the attitudes of users and businesses. Reducing fees and processing time for financial transactions, especially small transactions, promotes financial partnerships internationally.

Although banks make a lot of money by paying commissions for financial transactions, the cost of this process has its own reasons. Unlike the older model of this process used in the Ripple structure, most banks use the Nostro / Vostro model. In other words, financial institutions open deposits in foreign banks (Nostro) and foreign banks open an account in financial institutions (Vostro). Once reconciled, the two bank accounts will be able to trade with each other and process the desired financial transactions, and another financial institution will usually be in the process to reconcile the two accounts.

The Account Reconciliation process requires huge fees, there is no standard framework for conducting overseas transactions, and each bank must oversee the transfer of funds in accordance with the banking laws of the country concerned.

What is xCurrent?

In the digital age, the ultimate goal of Ripple is the instantaneous and rapid movement of money. This means that people will no longer have to pay heavy commissions to carry out their daily financial transactions. Unlike existing digital currencies, which are a kind of competitor to financial institutions. Ripple has focused on updating and strengthening banking systems.

X-Carnet is the first step in implementing Ripple’s goals, which means that instead of the hassle of a Nostro / Vostro account, X-Carnet software allows banks to make instant financial transactions. This product also allows financial institutions to track financial transactions and prevent them from returning. In addition, the result of reducing costs and increasing the processing speed of bank remittances is that customers prefer banking services equipped with XCarnet, and in general, the amount of overseas remittances increases.

Differences

You may be wondering what is the difference between Ripple and other companies like Paypal, in fact organizations like Paypal are in direct contact with customers while Ripple strengthens the infrastructure of financial institutions and networks. Becomes the world’s banking. In addition, RippleNet products do not rely solely on Ripple, in case the Paypal portal fails one day, its transactions will also fail.

PayPal still uses legacy technologies such as ACH to process transactions. While Ripple itself is a banking transaction processor that works directly with banks or other Internet payment gateways, Ripple also costs a lot. It has less than Paypal.

Ripple also hopes to establish itself as a standard system in the field of digital currencies, setting standards for money transfers across borders by tracking and inquiring about servers as a monitoring body. Some financial institutions have tried to imitate Ripple technology to enforce its rules in their own context. But have ultimately failed to compete with Ripple’s open source and efficient standards.

XRapid and xVia

The latest Ripple projects based on xCurrent are xRapid and xVia. The xRapid product helps financial institutions to easily enter emerging markets by reducing liquidity. For example, suppose a payment gateway wants to cover the eastern African city of Nairobi. So it should have enough Kenyan shillings so that users do not have trouble withdrawing accounts or making deposits.

X-Rapid allows payment gateways to increase their liquidity by using the XRP currency code instead of unsecured money. Then by converting contracts with financial institutions to convert XRP to Fiat money (such as dollars, euros). to customers.

Xvia is an API that allows companies, banks, payment gateways to conduct transactions through the RippleNet system. In addition, this product provides invoices and additional transaction information to payers. In simpler terms, XVIA acts as a link between money and information for any type of payer.

Vulnerability, centralization and competition

Although Ripple open-source code will not always be available to banks and will not overshadow its security. Its centralization will pave the way for cyber attacks. RippleNet claims that RippleNet products will continue to operate even if the company can’t be there. Some reports suggest that the use of the port in Ripple has sometimes caused users’ funds to be completely locked due to the port being out of reach.

Another concern about Ripple is that it looks like a private company. Although the Ripple network is open source, its launch has had financial goals for its developers. In other words, if there is a problem. It is that Ripple will incline to the wishes and desires of financial institutions. It will not pay much attention to ordinary users.

Ripple Network has many competitors but has gained a lot of popularity among financial institutions. So much so that it has greatly improved the field of modern banking and digital currency. So Ripple deserves this position among digital currencies.