Get to Know the Ripple Closer
To get to know Ripple (XRP) more closely, the first thing to know is that Ripple is a platform and also a cryptocurrency. The Ripple platform is an open-source protocol that is designed to make transactions fast and inexpensive.
Unlike Bitcoin which was never made to be a simple payment engine, Ripple will certainly master international transactions throughout the world. Very ambitious indeed, but who knows? Maybe the cryptocurrency exchange platform will slowly start to decrease as it did with Blockbuster stores.
The Ripple platform has its own currency, XRP but also allows everyone to use this platform to make their own cryptocurrency through RipleNet.
What is RippleNet?
RippleNet is a network of institutional payment services such as banks and financial services businesses that use solutions developed by Ripple to provide a seamless experience in sending money globally.
Example: First of all, Mr. Jones lives in New York and has a box of chocolates he doesn't want. And he really wanted to watch a baseball game but didn't have the ticket. Next, there is Ms. Smith lives in Los Angeles and has a rare stamp that he wants to exchange for a box of chocolates. Finally, there is Mr. Brown, who lives in Alaska, is looking for rare stamps and he happens to have a baseball game in New York.
Under normal circumstances without using Ripple, the three people will not meet and they will not get what they want. But on the Ripple platform, all they have to say is "I have chocolate, I want a baseball ticket" and the system will see the fastest and cheapest combination to make that happen.
Additionally, the Ripple platform allows payments in any cryptocurrency including Bitcoin and has a minimum internal transaction commission amount of $ 0.00001. The only reason why it isn't free is to prevent DDoS attacks.
What is XRP?
XRP is a token that is used to represent the transfer value in a Ripple network. The main purpose of XRP is to become a mediator for other exchanges, cryptocurrency, and fiat. The best way to describe an XRP is a Joker card that can turn into any card. If coin investors want to exchange dollars for euros, it can be dollars with dollars and euros with euros to minimize the commission. As mentioned before, the transaction fee at Ripple is $ 0.00001.
Who is the creator of Ripple (XRP)?
The Ripple Protocol as a prototype was made in 2004. But the real history began in 2013 when Jed McCaleb, the creator of the EDonkey network invited world-renowned investors to invest in Ripple Labs.
Chris Larsen is an angel investor, business executive and privacy activist who is considered the richest person in crypto assets. He is known for being a co-founder of several start-ups in the field of online financial services, starting with the online pawn loan service, E-Loan in 1996.
Jeb McCaleb is a programmer and entrepreneur. He is also a co-founder of several crypto startups including Ripple, Stellar, eDonkey, Overnet and also the crypto exchange Mt. Gox (he sold his shares and the platform was re-coded before the hacking incident occurred), which during his heyday handled more than 70% of Bitcoin transactions worldwide.
What is the Ripple Protocol Consensus Algorithm (RPCA)?
Unlike Bitcoin or Ethereum, Ripple does not have a blockchain. A cryptocurrency without a blockchain might sound a bit strange - if you don't have a blockchain, how can you verify transactions and make sure everything works well? For this reason, Ripple has its own patented technology, the Ripple Protocol Consensus Algorithm (RPCA)
The word "consensus" in the name of the technology means that if every node has an agreement with the other nodes, there will be no problem. Imagine if in one room there were 12 court judges who wanted to make an agreement and each made a decision. If everyone agrees that the defendant deserves punishment then the defendant will be given a sentence. However, if there is only one person who disagrees, then nothing will happen until it is known what makes one person have their own opinions.
What are the benefits of ripple?
- Ripple was originally designed as a daily payment system, so Ripple is more energy-efficient than Bitcoin. As a result, transactions are faster and cheaper
- Ripple has started as an official organization because its main focus is to be used by banks. So Ripple is not subject to several regulatory checks like many other cryptocurrencies.
- Ripple has the ability to be exchanged for any currency or valuable objects (such as gold) with a minimum commission standard.