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
0.3198 USD 6.70%
0.00008754 BTC -1.58%
Volume, 24h
266,313,979 USD
-5.47%
Marketcap
13,288,984,985 USD
11%
Emission
41%

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XRP Price Retakes $0.31 Despite Losses in BTC Value

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This week in Crypto: Coinbase, SEC, BCH, Tron, XRP, Bitcoin, SWIFT, Nasdaq

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It Is No Longer a Matter of ‘If’, But ‘When’ Coinbase Will List XRP

On the 7th of December, the popular American cryptocurrency exchange of Coinbase made an announcement that excited a lot of crypto enthusiasts as well as angering a few. The announcement was that the exchange was considering support for 31 additional digital assets on its platform. A few crypto enthusiasts wondered why the exchange would provide a new list when the previous list – that still had Stellar (XLM) and Cardano (ADA) – was not complete. Others pointed out that the exchange went ahead and listed 4 ‘relatively unknown’ ERC20 tokens rather than solid tokens linked to solid projects. These 4 tokens were Civic (CVC), district0x (DNT), Loom Network (LOOM), and Decentraland (MANA). One such complaint can be seen in the following tweet. Listing Civic and Mana is a total joke. Coinbase is losing all the credibility today. Both are literally zombie projects. I’m honestly shocked — Larry Cermak (@lawmaster) December 7, 2018 A Silver Lining for XRP The new list did however include XRP thus providing a silver lining for fans of the digital asset who have been waiting for a listing since early January this year. Back then, XRP went on to reach levels of $3.84 as traders were sure it was next to be listed on the exchange. Bitcoin Cash had been listed a few weeks earlier in December 2017. But the listing fell through and XRP tailspinned to current levels of around $0.30. The decline in value was  however accelerated by the current bear market that was catalyzed by regulatory fears across the globe, exchanges being hacked, hash wars and traders throwing in the towel due to investor fatigue. XRP Continually Resilient However, amidst the turmoil, XRP has managed to become one of the most resilient digital assets in the current bear market. XRP has slowly but surely climbed the ranks according to market capitalization even edging out Ethereum (ETH) in the process. XRP is now ranked second according to market capitalization. Discrepancies Between Coinmarketcap.com and Yahoo Finance XRP traders have noted that when using the popular cryptocurrency tracking website of Coinmarketcap.com, $50 Billion in market capitalizations stands between XRP and Bitcoin: The King of Crypto. Checking the cryptocurrency screener on Yahoo Finance, we find that the difference in market capitalization between the top two is  now reduced to $30 Billion. A screenshot from Yahoo has been provided below for a better visualization. The difference between the two tracking websites is that Coinmarketcap does not include the entire supply of XRP when doing its calculations for market capitalization. It uses 40.92 Billion XRP to reach the market cap figure of $12.86 Billion. Yahoo on the other hand, uses the entire 99.99 Billion XRP to calculate its market cap figure of $31.367 Billion. When Will Coinbase List XRP This then leaves us with the question as to what will be the market reaction when Coinbase lists XRP. The exchange has already provided the information that it is exploring listing the digital asset. Therefore, it is safe to assume if XRP is listed in the coming days, it could close the gap it has with Bitcoin or even succeed in dethroning the King of Crypto. Using Coinmarketcap figures, XRP needs only be valued at $1.525 to dethrone BTC. On the other hand, when using Yahoo’s figures, XRP needs to be valued at $0.624 to achieve a similar feat. Do you think Coinbase will list XRP soon? What will be the market reaction of such an event? Please let us know in the comment section below.  Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you. The post It Is No Longer a Matter of ‘If’, But ‘When’ Coinbase Will List XRP appeared first on Ethereum World News.
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