The Beginner’s Guide to Ripple

The Beginner’s Guide to Ripple

Ripple is a real-time gross settlement protocol, currency exchange and remittance network. Ripple Labs, the company developing Ripple, seeks to revitalize bank interoperability by providing an interledger infrastructure (xCurrent), a liquidity layer for fiat currencies (XRP-powered xRapid), and an API to access these services (xVia)

Ripple Labs

Before we can understand Ripple, we first need to talk about the company behind it. Originally branded as OpenCoin, Ripple Labs is a software company based in San Francisco.

The idea of a decentralized monetary system came to Ryan Fugger back in 2004. He later built the first iteration of the system, RipplePay.com. In 2011 Ryan left the project and handed it over to Jed McCaleb and Chris Larsen, who co-founded OpenCoin in 2012. In 2015 the company was renamed to Ripple Labs, Inc.

Ripple Labs has three major projects: xCurrent, xRapid, and xVia, which combined together form the Ripple ecosystem powered by RippleNet, a network of banks and financial institutions. RippleNet nodes establish consensus over the network via Ripple Protocol Consensus Algorithm.

xCurrent

xCurrent allows banks to instantly settle cross-border transactions in highly-liquid fiat pairs like USD/EUR or USD/JPY. xCurrent is built around the Interledger Protocol (ILP), an open, neutral protocol which connects different ledgers and payment systems. xCurrent provides an automated process that ensures all payments are properly tracked and accounted for. xCurrent consists of four components:

Messenger

The xCurrent messenger is a bidirectional messaging API that lets banks communicate prior to initiating the transaction and exchange essential information such as KYC and risk information, fees, payment details and expected time of funds delivery. If information is missing or incorrect, the parties will not know it in advance.

ILP ledger

ILP ledger is a subledger of each transacting bank’s ledger. It monitors credits, debits and liquidity across the transacting banks to make sure the transaction is possible. ILP ledger provides atomicity to the system, meaning transactions are either settled instantly or not at all. Atomicity removes any settlement risk because the payment either processes entirely or fails upfront.

Validator

Validator confirms the success or failure of the transaction using cryptography. Validator coordinates the movement of funds across ILP ledgers, removes all settlement risks and minimizes delays in delivery. Validator provides the single source of truth for the transacting parties while preserving the privacy of their information. A bank can run its own Validator or rely on a Validator run by the transacting counterparty.

FX ticker

FX ticker helps convert fiat currencies in an efficient manner. FX ticker facilitates the exchange of funds between currencies.

'xCurrent helps banks settle transactions in a matter of seconds'

For more information, read the official xCurrent product overview.

xRapid…

… and its asset XRP

xRapid is Ripple’s solution for value transfer in low-liquidity fiat pairs. It seeks to minimize liquidity costs and improve customer experience.

xRapid relieves banks from the necessity of having pre-funded accounts in developing countries. xRapid utilizes its own asset, XRP, and a distributed ledger, the XRP ledger, to serve as a source of liquidity for any fiat pair.

The XRP ledger acts as a transitional liquidity layer between two fiat currencies. A typical xRapid transaction takes about four seconds to process and includes four steps:

  • sender initiates and confirms a transaction in Currency A from Country X,
  • funds in Currency A are converted to XRP,
  • funds in XRP are converted to Currency B,
  • receiver in Country Y receives funds in Currency B.

'XRP acts as the source of liquidity'

xVia

xVia is an API that ties the Ripple ecosystem together. Using xVia, companies will be able to connect to RippleNet and send payments across various networks around the globe in an instant.

xVia does not need installation and works like a browser extension. xVia is in its development stage.

Trivia

  • XRPs cannot be mined as the entire supply of 100 billion XRP was pre-minted. Ripple Labs is said by various sources to own more than half of it.
  • Ripple Labs does not own RippleNet, and it can operate without the company.
  • Jed McCaleb left Ripple Labs in 2013 and co-founded Stellar, a distributed payments infrastructure.
  • Ripple is often criticized for its centralized structure which relies on trusted validators.
  • Many doubt the necessity of the XRP token as an integral element of the network.
  • XRP is currently the third crypto asset by market capitalization.
  • In January 2018 XRP set all-time-high at $3.4.
  • A transaction in XRP costs 0.00001 XRP.
  • Ripple’s official partners include UniCredit, UBS, Santander.
  • Massachusetts Institute of Technology is one of the validators on RippleNet.
  • xRapid went in commercial production on October 1, 2018.

Links

Official Ripple website

Official Ripple news

Developer center

Twitter

Facebook

Technical info

ILP website

Interledger paper

Ripple Protocol Consensus Algorithm

Community

Subreddit

Discord

XRPChat

Telegram

Help

What is Ripple?

Coinmarketcap

How to buy XRP

Partners

FAQ

Why XRP will grow in value

XRP explorer

XRP

XRP
Price
0.4543 USD -2.29%
0.00005200 BTC 7.35%
Volume, 24h
1,316,427,362 USD
0.00%
Marketcap
17,929,069,685 USD
6.5%
Emission
42%

Related news

Report: XRP Now Accounts For 3% Of All Payments Made Through CoinGate

XRP has been touted as one crypto that could penetrate deep into the global financial market and achieve high adoption rate in the coming years. For one, XRP has been listed on various crypto exchanges and has achieved fair popularity in the market. It’s now the 3rd largest cryptocurrency by market cap. As is a fact, one factor that drives the dominance of a crypto like Bitcoin is its high usage. XRP has been trying hard to achieve such kind of wide usage. A recent report by CoinGate suggests that the number 3 crypto might as well be on its way to stardom. According to a tweet by CoinGate on 23rd August 2019, XRP has now achieved a cool 3% share in the total number of payments sent via the exchange.  Over 19% Increase Image Via Twitter | @coingatecom Going on, CoinGate announced that compared to the figures recorded in May, XRP’s usage in payments made through the exchange is confirmed to have shot up by around 19.64%. That’s a pretty impressive move considering that the market has been relatively on a pendulum, with XRP price hiking and then dropping back to the $0.27 range.  However, there are those who don’t feel the cited data is correct, especially since it doesn’t put into account the newly activated accounts. Still, it’s agreeable that a 19% increase in usage is a credible achievement over such a short time-frame.  RippleNet Counts Too This is primarily due to Ripple’s efforts in propping up the crypto and entering partnerships with financial institutions that want to use or could later want to use XRP as a base currency for payments. Currently, Ripple has attracted over 200 financial institutions that are now part of its RippleNet.  The company is also signing in around 3 new clients every week. If this trend continues and more people use XRP on exchanges and banks use it for cross-border transactions, demand could increase and thereby impact the price upwards. The post Report: XRP Now Accounts For 3% Of All Payments Made Through CoinGate appeared first on ZyCrypto.
ZyCrypto

XRP’s rising tide likely to face hurdle with formation of descending triangle

The year 2019 has been rough for XRP solely because of its price. As the new year set in, XRP’s price consolidated mainly between the price range $0.2604 and $0.3834. After numerous tries, the third-largest coin broke out from the consolidating price range but eventually had to return after 56 days. Since then, the price […] The post XRP’s rising tide likely to face hurdle with formation of descending triangle appeared first on AMBCrypto.
AMBCrypto

Female Hacker Fesses Up to 100,000 XRP Fraud Down Under

By CCN Markets: 7News Sydney reports that Katherine Nguyen is the first-ever Australian resident to plead guilty for cryptocurrency fraud after stealing 100,000 XRP. In 2018, twenty-four-year-old Nguyen hijacked the email account of an elderly man of the same surname for two days before handing back access. The first person charged over cryptocurrency fraud has […] The post Female Hacker Fesses Up to 100,000 XRP Fraud Down Under appeared first on CCN Markets
CCN

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.