Information About Ripple
Ripple is real-time gross settlement system (RTGS), currency exchange and remittance network by Ripple. It is built on distributed open source Internet protocol which consensus ledger and native cryptocurrency called XRP. It enables secure, instant and free global financial transactions of any size without any charge. Ripple supports the tokens representing fiat currency, cryptocurrency, commodity or other units of the vale. Nowadays, Ripple is adopted by banks and payment network as settlement infrastructure technology. It is also term as “legitimate money transfer system.”
Earlier, Ripple was created as the P2P payment network. It aims to be a global settlement network.i.e., a platform which allows users to transfer money in one currency to another currency in few seconds. Ripple goals to eliminate the use of traditional systems like the Western Union or SWIFT.
The algorithm used in Ripple is called as SHA-512.
- Ryan Fugger invented predecessor of Ripple payment protocol, called Ripplepay in the year 2004. He was a web-developer in Vancouver, British Columbia.
- This plan of creating Ripple struck his mind when he was working on a local exchange trading system in Vancouver.
- Fugger intent to create a monetary policy that is decentralized and allow users to create their own money.
- Fugger first developed RipplePay.com in the year 2005 as a financial service which provides secure payment options to members of an online community through a global network.
- OpenCoin is a company which builds the Ripple protocol. The company was founded by CEO Chris Larsen and CTO Jed McCaled.
- Ripple connects banks, Payment providers, digital asset exchanges and corporate through RippleNet. It provides a frictionless experience to transfer money globally.
- Ripple furnishes free access to the fastest and scalable digital asset for payments such as XRP.
- Ripple facilities users to issue and swap credit between network participants which trust each other.
- Ripple claims to be “One Frictionless Experience to send money globally.”
- As ripple is associated with banking sectors, it comes with fewer risk and is the safe investment which provides long-term protection.
- Ripple has the low barrier to entry and gives ownership directly to the investors.
- Ripple is created for large, financial institutions and quick transactions which involves various currencies. Ripple seeks to accompany bitcoin rather than competing with the latter.
- Ripple lacks coin scarcity and is a primary disadvantage for investors in Ripple.