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Ripple Network

What Is Ripple? Everything You Need To Know About Ripple Network And XRP Ciphers

Ripple Is A Money Transfer Network Created To Meet The Needs Of The Financial Industry. XRP Is An Encryption That Works On The Ripple Network

Ripple Network, we will take a closer look at the services provided by Ripple.

Ripple is not crypto but the manufacturer of crypto XRP. The platform created by Ripple is an open-source protocol that enables fast and cheap transactions. Ripple platform has native ciphers called “XRP,” but everyone can create their own ciphers through RippleNet.

Unlike Bitcoin, which was never designed for easy payment, Ripple intends to govern all global transactions. Despite Ripple’s ambition, the company is currently grappling with the Securities and Exchange Commission (SEC). However, this has not stopped Ripple from growing.

Ripple has not come to replace bitcoin.

Ripple developers have taken a different approach to competitors such as Bitcoin or Ethereum. Although Bitcoin and Atrium want to create a completely new monetary system that is not controlled by governments and allows transfers without the intervention of banks, Ripple does just the opposite:

Ripple developers work with banks to use Ripple as a payment network. . Ripple wants to become a “bitcoin for banks.”

End-users use Bitcoin to make payments, but Ripple is a technology that runs in the background, meaning users do not necessarily realize they are using Ripple indirectly.

The Ripple project targets large organizations such as payment service providers, financial institutions, and banks.

Bitcoin wants to change “what we pay,” while Ripple wants to change “how we pay.”

What is Ripple?

Ripple is a global payment system and exchange network. The basic idea is that Ripple acts as a trusted intermediary between two people involved in the transaction, during which the network can quickly approve the transaction. Ripple also facilitates the exchange of Fiat currencies, cryptocurrencies, and commodities such as gold.

Ripple was originally designed as an alternative to the SWIFT global money transfer network or as a payment intermediary between large financial institutions.

The Ripple is a software company based in San Francisco, the USA, that offers products to banks and financial services companies, enables them to make international payments, and makes transactions faster and cheaper than the existing system.

Crypto Ripple has established a payment and exchange network (RippleNet) on Distributed General Ledger (XRP Ledger). The XRP General Office was created as an alternative to the proof of work consensus originally introduced by Bitcoin.

 XRP Headquarters is a commercial Chinese blockchain that supports cross-border payments by organizations.

Like Bitcoin, Ripple does not have an extraction process; instead, several groups obtain Ripple transactions to reach a consensus.

Ripple offers two main products for banks: xCurrent and xRapid; we will examine these products in more detail below. XRapid uses a native Ripple network token called XRP to perform transactions, but most people often refer to all of these (company, network, and token) as “Ripple.”

Remember, XRP for Ripple is the same as Ether for Atrium and Bitcoin is for Bitcoin blockchain.

Ripple came up with the idea in 2004, before Bitcoin.

The main difference between XRP and Bitcoin is that XRP never wanted to be a public digital currency like Bitcoin. XRP is the only tool used by banks and financial institutions to pay for transactions in xRapid. Ripple refers to the XRP token as a “payment token”; whenever a transaction is made on the Ripple network, some XRP is deducted as a fee.

History of Ripple

The idea for Ripple was first mooted by Ryan Fugger in 2004 when he developed the prototype Ripple as a decentralized digital monetary system (RipplePay). The system, which provided a secure way to make payments over the World Wide Web, was launched in 2005.

In 2012, Foger outsourced the project to Jed McCaleb and Chris Larsen, co-founders of OpenCoin. Since then, Ripple has been developed as a system for bank payments and financial institutions. In 2013, OpenQueen had renamed Ripple Labs, and again in 2015, Ripple.

The creators of Ripple

Ripple Founders, right: Chris Larsen and McCaleb’s grandfather.

  • Chris Larsen: He is an angel investor, CEO, and privacy activist known as the richest person in the world of digital currencies. Larsen is the co-founder of several online financial services startups.
  • McCullough’s grandfather: He is a well-known programmer and entrepreneur who has founded several startups, including Ripple, Stellar, eDonkey, Overnet, and the famous Mt.Gox exchange. McCalebb had sold shares in the Mt.Gox exchange before the major hack and re-coding, at which time the exchange held 70% of all bitcoin transactions. Ripple’s true story began in 2013 when McCalebb invited several global investors to invest in Ripple Labs.

How does Ripple work?

The Ripple network does not have a consensus system such as Bitcoin or stock proofs such as Atrium 2; instead, transactions in Ripple use a ” Byzantine error tolerance ” consensus in which verifiers in the system approve transactions and account balances. Consensus increases system security and prevents double-spending.

When a user in Ripple starts a transaction with multiple ports and tries to send $ 100 to the system, all transactions except the first one are deleted. Distributed nodes decide by consensus which transaction is done first. Confirmations are quick and take about 5 seconds.

Since there is no central body that decides on creating nodes and the approval of transactions, the Ripple platform is decentralized.

XRP Ledger (XRPL)

In 2012, Ripple formed a consensus between Ripple General Manager (RLC) and native cryptocurrencies called XRP, based on Fogger’s work and the influence of Bitcoin. The RLC was later renamed XRPL.

XRPL operates as a decentralized economy that stores the accounting information of all network participants and provides exchange services for several currency pairs.

Ripple offers XRPL as a distributed, open-source general ledger that enables instant financial transactions. These transactions are secure and are verified by the participants in the network through a consensus mechanism.

Unlike Bitcoin, XRPL does not work on a PoW mechanism and therefore does not use the extraction process to verify transactions. Instead, the network uses a proprietary consensus mechanism, formerly known as the Ripple Consensus Algorithm Protocol (RPCA).

How does the consensus mechanism work in Ripple?

XRPL is managed by a network of independent authenticators that constantly compares transaction archives. Everyone can set up and run a Ripple verifier node and determine which nodes to trust as a verifier.

However, Ripple suggests that clients use a trusted list of participants to verify their transactions. This list is called the Unique Node List (UNL).

UNL nodes exchange transaction data with each other as long as they all agree on the current state of the general ledger. In other words, transactions agreed upon by the majority of UNL nodes are considered valid transactions, and the consensus is reached when all nodes apply the same set of transactions to the general ledger.

According to the Ripple website, the company is privately owned and has developed XRPL as an open-source distributed ledger.

This means that everyone can write the code, and even if Ripple stops working, XRPL can continue to operate.

A committee of verifiers acts as the extractor and full node operator for XRP and maintains the transaction ledger. These verifiers reach a consensus every three to five seconds and provide a new version of the transaction ledger that contains the most recent transactions.

Although anyone can verify XRP by executing code, this does not mean that everyone on the network trusts them. To gain this trust, they must be on the Ripple Unified Node (UNL) list administered by Ripple.

There are currently 35 active XRP certifiers, 6 of which are run by Ripple itself.

What is RippleNet?

Unlike XRPL, a publicly available ledger, Ripple Net is owned by Ripple and is built on XRPL as a payment and exchange network.

RippleNet is a digital payment network for banks that aims to streamline and streamline international financial transactions. Ripple Net is designed to connect financial systems and secure the transfer of assets such as Fiat money instantly.

The goal of Ripple makers is simple: to drastically reduce transaction costs when transferring capital and securities globally. The creators of Ripple created the Ripple network to perform transactions in just a few seconds and without commission.

The Ripple world is divided into two distinct parts: RippleNet payment network and 2. The real currency in this payment network is called “XRP.”

An example to better understand RippleNet

As mentioned, RippleNet is a network of corporate payment service providers such as banks and money service businesses that use the technology developed by Ripple to experience unpaid global money transfers.

To better understand this, let us give an example:

Bob lives in New York and has a pack of chocolates that he does not need. He is very interested in baseball but does not have a ticket.

On the other hand, Alice lives in Los Angeles and has a rare stamp, and is willing to exchange it for a packet of chocolate. Sarah also lives in Alaska and is willing to exchange her baseball ticket for a rare stamp.

These three people will never find each other in the current system, and their goods will remain unused. But in the world of Ripple, they can say, “Hey! “I have chocolate, and I want a baseball ticket.” The system will look for the shortest and cheapest combination.

The platform also allows payment in the form of any currency, including bitcoin, with a minimum fee of $ 0.00001, which is close to zero. The only reason it is not free is to prevent DDoS attacks.

Ripple Company Products

RippleNet currently offers three products designed as payment solutions for banks and financial institutions. RippleNet currently has three main products: X-Rapid, X-Carnet, and X-Villa.


In short, xRapid is a liquidity solution that uses XRP as a bridge between several Fiat currencies. Both XRP and xRapid are based on the XRP Ledger, which provides faster transaction verification and lowers fees than conventional methods.

Let’s give an easier example. Bob wants Australia to send $ 100 to Alice in India. The transfer is done through FIN Financial Institution. FIN uses xRapid to make transactions between exchanges of capital in countries of origin and destination.

This way, the company can convert $ 100 bobs into XRP and provide the cash needed for the final payment. Within seconds, XRP converts to Indian Rupee, and Alice can withdraw money from a local exchange in India.


xCurrent is a solution designed for instant payment and tracking of cross-border payments between Ripplenet members. Xcaret does not use XRP ciphers by default, so developing this network does not necessarily increase the price of XRP and growth.

X-Carnet is based on the Integer Protocol, which Ripple developed to connect ledgers and payment networks. Although X-Carnet was originally designed for Fiat money, it also supports digital currencies.


xVia is an API-based user interface that allows banks and other financial service providers to interact with each other through a shared framework without the need for multiple payment networks. xVia allows banks to make payments through other bank partners affiliated with RippleNet and attach invoices and other information to transactions.

Benefits of Ripple

  • Fast payment: Verification of transactions in Ripple is high-speed. Compared to banks, which take days to minutes to transfer money, or bitcoin, which takes minutes to hours, transfers usually take between four and five seconds.
  • Very Low Fee: The transaction verification fee on the Ripple network is only “0.0001”.
  • Diverse Exchange Network: Ripple Network is not only used to transfer XRP but can also be used to transfer other Fiat currencies, cryptocurrencies, or commodities.
  • Use by large financial institutionsLarge companies can use Ripple as a trading platform. Santander, Axis Bank, and Yes Bank are just a few of the institutions that use Ripple. Ripple currently has an enterprise user market compared to most cryptocurrencies.

Disadvantages of Ripple

  • Somewhat centralized: One of the reasons cryptocurrencies are so popular is that they are decentralized and control large banks and governments. The Ripple system may be somewhat centralized due to its pre-determined list of validators, contrary to the cryptographic philosophy.
  • Highly Extracted XRP Inventory: Most Ripple inventories are not in circulation and are held in a Ripple account. The high volume of XRP released in the future may affect the price of these cryptocurrencies.
  • SEC v. XRP: In 2020, the US Securities and Exchange Commission (SEC) filed anti-ripple cases, arguing that since Ripple sets the release date for XRP, XRP should be listed as a token. Until this case is resolved, organizations will use it less quickly. As a result, several exchanges have stopped offering XRP.

What is XRP?

XRP is a token used to transfer value in the Ripple Network, and Quinn is native to the network. The main purpose of XRP is to be an intermediary when exchanging other Fiat cryptocurrencies and currencies.

If you want to convert the dollar into euros, you can buy XRP dollars and then buy and sell those euros and pay the lowest fee. A ripple transaction fee is $ 0.00001.

It is noteworthy that after the transaction, the $ 0.00001 fee, which is in the form of XRP, is burned, and with each transaction, this amount of XRP is removed from its balance. This is designed to prevent spammers from attacking.

What is the maximum number of XRPs available?

In 2012, the founders of Ripple made a maximum inventory of 100 billion XRP, of which 43 billion is in circulation. Ripple Labs, The company behind Ripple, has kept the rest of the money for its own financing, and the company is in complete control.

In the long run, more coins will be distributed among users. However, Ripple has not yet set an exact date for this.

 How can Ripple (XRP) be extracted?

Extraction is a distributed authentication system used by most cryptocurrencies based on China’s Blockchain technology. It simplifies transaction extraction and provides a mechanism by which a new currency is introduced into the cryptocurrency system. This currency is rewarded to verifiers in return for the support they provide to the network.

For example, Bitcoin has a maximum inventory of 21 million tokens, and the more transactions are approved, the will release more these tokens.

In contrast, XRP has already been mined, meaning that XRP Ledger generated 100 billion tokens before releasing them to the public. Ripple wants to keep a small number of coins to monetize the value of the currency.

The company’s main goal is to distribute XRP widely.

Unlike other cryptocurrencies such as Bitcoin, extracted by users decentrally through a complex computational process, no one can extract XRP because Ripple already makes all XRP tokens. The rules of the XRP protocol are not written accordingly.

Ripple owns 6% of this amount as an incentive for the growth of these cryptocurrencies. The remaining 48% is held in stock and periodically sold through the market.

Some concerns will release many XRPs at once, and that prices will fall as supply increases. Ripple has tried to reduce this uncertainty by building trust, predictable liberalization, and so on.

Mining versus pre-mining is another case where the SEC thinks XRP is more of a token than a managed currency under stricter rules.

 XRP application

XRP can be used for transactions or investments, just like any other cryptocurrency. Can also use The Ripple network to perform other types of transactions, such as currency exchanges.

For example, you are looking to exchange dollars for euros. You can first convert your dollars to XRP on the Ripple network, then buy euros with that XRP. In this method, there is no need to exchange currency directly through a bank or exchange office.

This approach is much faster and cheaper than paying high fees to banks and institutions.

Ripple Wallet (XRP)

Before choosing a Ripple Wallet (XRP), you need to determine which type of hardware volts is the software you are looking for.

The image below shows each of these types of wallets with their features.


  • Hardware wallets: Almost all hardware wallets support XRP. Hardware wallets are one of the safest ways to store digital currencies because access to coins is encrypted by hardware, and retrieval words are generated offline. This makes it more secure than a voltage connected to the Internet. Among the best hardware wallets for Ripple storage are the Ledger and the Trezor.
  • Software and mobile wallet: Among the best XRP software volumes, we can mention “Trust Wallet,” “Atomic,” “Coinomi,” “Exodus.”

Why are 20 ripples deducted from your account after making a wallet?

Ripple is a cryptocurrency that has a unique minimum inventory rule for its general ledger use. Like traditional banks that require a minimum balance, Ripple requires that your account always have more than 20 XRP balances, so if you deposit 20 XRP or more to your address, this address will be active and usable.

Note that this is a first-time requirement, and when you first deposit more than 20 XRPs to your address, 20 XRPs will be unavailable to you and locked into your account.

 Ripple has not yet announced a release date for the 20 XRPs.

If you deposit less than 20 XRPs to your account for the first time, the transaction will fail.

In insecurity services such as Crypto exchanges, your address is shared with several other people. To prevent losing your funds, you have a Destination Tag or Memo. However, this account does not belong to you. The exchange meets at least 20 XRP requirements but has complete control over private keys.

In insecure wallets such as Atomic Wallets, your address is unique to you. Although you have to pay the minimum amount of XRP, you have full control of the account.

Send and receive Ripple and format its addresses.

If you have an XRP account, your account address starts with “… r,” and you do not need the destination tag mentioned in the previous section. But when you send money to a cryptocurrency exchange, wallet, or payment platform, you have to enter a number called Destination Tag. But this routine will change.

The new address form, “Address-X,” will replace the combination “… r” and the destination tag. In the new form of the address, which includes the destination of the account and the destination tag, other users will not have an error when entering the address.

The new form of the address is easily recognizable as the “X-address,” for example, note: XV5sbjUmgPpvXv4ixFWZ5ptAYZ6PD2q1qM6owqNbug8W6KV.

It will take some time for all Ripple customers, wallets, and cryptocurrencies to relocate to the new address. Until then, both the old form (address and numeric tag) and the new address form (starting with X)

Ripple China Block Browser

Blockchain Browser allows users to search for extracted blocks and recent transactions on Blockchain. The most important feature of the Blockchain browser for users is transaction tracking.

From this link,  you can access the Ripple China block browser, and by entering your wallet address, you can view the status of the completed transactions.


Buy or exchange Ripple (XRP)

Almost all Iranian or foreign digital currency exchanges have provided the possibility of buying Ripple (XRP) directly or through the purchase of Tetra.

Also, if you have other cryptocurrencies, you can get Ripple by exchanging in the mentioned exchanges or decentralized exchanges (DEX).


What is the price of Ripple (XRP), and where to get it

There are several ways to view the instantaneous price of XRP, some of which are as follows:

  • Do a Google search for “ripple price” or “XRP price.”
  • See the price of Ripple and other cryptocurrencies along with the chart from the coinmarketcap or  Coincko website.


Price history


Ripple Price Chart. Source: CoinMarketCap.

As of January 2, 2017, Ripple was priced at $ 0.006, according to QuinnMarketCup. With the start of the bull run in 2017, the price of XRP reached over $ 1. On January 4, 2018, XRP set a price record of $ 3.84.

After the crypto market bubble burst in 2018, the price of Ripple fell below $ 1. After three years and in early 2021, the price of Ripple again reached above $ 1. During this period, Rapid fluctuations due to the SEC case and caused the XRP price to fall.

Why has Ripple been criticized?

Although there is a long list of reputable banks that have decided to partner with Ripple, according to the Financial Times, most of them are in the testing phase. Some of these money transfer banks use the Ripple platform rather than the XRP token.

Ripple can also block your transactions. The biggest example was when the grandfather of McCalebb, one of the founders of Ripple Lab, tried to sell more than $ 1 million in XRP, but his transaction came back.

Rumor has it that the ancestor violated the contract, but in any case, the possibility of blocking the transaction is against the basic rules of cryptography.

Ripple Court

The US Securities and Exchange Commission (SEC) has filed a lawsuit against Ripple, accusing two Ripple executives of making more than $ 1.3 billion through unregistered digital equity offerings.

According to Ripple, Christian Larsen, the company’s co-founder, former Ripple CEO, and Bradley Garlinghaus, the company’s current CEO, have raised funds to fund the company.

The lawsuit alleges that Ripple has been selling digital assets called XRP since 2013 by offering unregistered securities in the United States and worldwide.

Ripple is also accused of distributing billions of Ripples in exchange for non-cash items such as marketing. According to the lawsuit, Larsen, and Garlinghouse, in addition to creating and promoting XRP sales to finance the company, have affected unregistered XRP sales of $ 600 million.

The complaint alleges that the defendants in the case did not register XRP bids and sales in violation of federal securities laws.

 Future of Ripple (XRP)

This article or section does not cite its references or sources. There is a risk of losing capital in any investment, and the investor must, after studying and researching, make the final decision and take responsibility for the consequences.

Although many people find the prospects and benefits of XRP fascinating, Bitwave CEO Pat White is concerned about the SEC anti-ripple case; he says: Now they have a serious problem with the SEC. “None of the customers want to start using XRP until these legal issues are resolved.”

However, XRP is a risk that is not suitable for conservatives

. Although the price of XRP has returned somewhat since the Ripple case began, the SEC says the XRP is falling.

The cryptocurrency market will continue to fluctuate until Ripple’s problems with the US Securities and Exchange Commission are resolved. If Ripple can win the SEC case and control the payment system, buying XRP is worth it.

Advantages of XRP

  • Ripple is an official company that many banks trust; Ripple Blockchain is not an unknown startup.
  • No inflation: All tokens have already been extracted.
  • If one day all banks decide to use XRP as a common bank currency instead of the laborious currency exchange process, those who have invested in Ripple from the beginning will benefit from their investment.

Disadvantages of XRP

  • Ripple is very centralized, which contradicts the main idea of ​​cryptocurrencies, which is to avoid a central institution.
  • Since tokens have already been extracted and Ripple owns 61% of the tokens, the company’s developers can decide when and how much to release the XRP tokens they have, so it’s like investing in a bank.
  • Ripple is an open and brilliant text project; although being open source can reveal the project’s problems, it is like a double-edged sword, and some may try to hack it.

Concluding remarks

Although Bitcoin is recognized as the first cryptocurrency and Atrium as a platform for smart contracts, we can consider the Ripple network as a currency exchange system that focuses on creating a global payment solution for banks and financial institutions.

RippleNet may be used on the current banking infrastructure as a complement to the traditional payment system. xCurrent enables cost-effective instant payments for financial institutions.

xRapid XRP acts as a bridge between currencies and providing liquidity to high-demand pools. xVia facilitates integration and connectivity between all RippleNet contributors.