We often talk about Bitcoin as the first cryptocurrency. But did you know that the concept of Ripple was created at least 5 years before the launch of Bitcoin?
Ryan Fugger, a computer programmer based in Canada, developed RipplePay in 2004 to allow people to safely credit monies.
In 2011, Jed McCaleb, a computer programmer, developed the Ripple (XRP) crypto and blockchain. He approached Fugger to allow him to use his RipplePay network. Following this, RipplePay was handed over to McCaleb.
The new company was launched by the name of NewCoin. Its name was later changed to OpenCoin and finally to as we now know it- Ripple.
Intending to improve the current banking system and the longer time that it takes to process transactions, the main aim of Ripple was to create a decentralised network of payment providers and banks to send low-cost, trackable, and real-time payments all across the globe. It intends to work as a viable alternative for SWIFT, the international payment system used by banks.
What is XRP?
Ripple or XRP is the native cryptocurrency created for the Ripple network in 2013. It was designed mainly to allow users to transfer value instead of using it as a store of value.
XRPs cannot be mined. They don’t work on proof-of-work or proof-of-stake systems. A total of 100 billion XRPs were created initially and most of them are out of circulation currently. Ripple owns about 60 billion of them. If you wish to transact in Ripple, get to know the Ripple price in INR.
Here’s a rundown of some of the most important features of Ripple:
If you want to transfer some money from India to Nigeria. Traditionally, the banks in India are not likely to have Nigerian currency reserves resulting in immense delays in the money transfer. Add to this the set of rules that the respective banks need to follow.
RippleNet is a payment facilitators network that allows financial institutions across the globe to work closely with each other allowing faster and low-cost transactions. This structure is completely decentralized without any governmental or intermediary interference.
Consensus and Validation
All the XRP transactions are checked for validity and order by independent validators. The validator nodes come to a consensus using the RPCA (Ripple Protocol Consensus Algorithm). Anyone can become a validator by running the validator programme and getting incentivised for maintaining the ledger.
Since these validators are pre-selected and the total number of XRPs are already in existence there is no mining involved. This allows energy, time, and money savings.
Anyone, be it an entity or a person, who wants to join the Ripple network can approach the gateways, which are usually run by banks.
These gateways not just provide an entryway to outsiders into the Ripple network but also act as a chain of trust between two parties who want to complete a transaction between the two of them. These transactions include the transfer of funds both in traditional and digital currency using the Ripple network.
XRP ledger is a distributed ledger that records all the transactions done using XRP. Only the transactions approved by the validators are included in this ledger. To maintain transparency, Ripple doesn’t have more rights than any of the other contributors.
The ledger reaches a consensus on outstanding transactions every 3-5 seconds, after which the ledger is updated. These ledgers can also work with currencies other than XRP such as Bitcoin and Litecoin. If you wish to invest in Litecoin, know the conversion rate of Litecoin to INR.
All these features of Ripple make worldwide payments faster, more transparent, and efficient as compared to those in the traditional banking system. Another plus is that since all the XRP is already created, there can never be any inflation. Visit Coinswitch to know more about Ripple and keep yourself updated on the latest happenings in the crypto markets.