Ripple is the only corporate blockchain solution in the world of global payments. The developers of Ripple realized that, despite numerous advances in technology, the payment infrastructure that we continue to use today was actually created before the Internet took off or even evolved. Since then, it has seen only minimal updates. With Ripple, it is focused on creating a new payment infrastructure that increases reliability and speed while reducing costs.
What does the company/project do?
Among the various problems associated with the current payment infrastructure, Ripple focuses on the solution of several large ones. The Federal Reserve, the Institute of International Finance and the World Trade Organization estimated that the infrastructure costs 1.6 trillion dollars. It’s also incredibly slow, with payments taking three to five days in addition to high failure rates. Ripple arises in response to demands for the unprecedented, economical and reliable experience.
How did the Ripple project come about and how did it develop?
Everything began with a Ripplepay development by Ryan Fugger, a programmer from Canada in 2004, four years before Bitcoin. The first version of his system, RipplePay.com was released in 2005, and then the hobby of the popular at the time decentralized technology torrents. Ryan Fugger met with Jed McCaleb, who developed the eDonkey file sharing network, as well as other members of the network, Arthur Britto, and David Schwartz.
In 2011, they completely revised the concept of Ripple and decided to rely on a decentralized network, but, unlike Bitcoin, without mining. At the same time, the Ripple network works much faster than the Bitcoin network. In 2012, Chris Larsen joined the team, who previously founded two e-loan systems.
Since 2012, their subsidiary company OpenCoin Inc. is engaged in improving the payment protocol. On September 26, 2013, OpenCoin Inc. was changed its name to Ripple Labs Inc., the original team retired and Chris Larsen became the director. And since 2014 the company has reoriented to cooperation with banks.
The first bank working with them in 2014 was the German bank Fidor from Munich. In December 2014, the XRP cryptocurrency for a short time got over Litecoin, breaking into the second place by the market capitalization of the cryptocurrency, which reached $ 500 million. At the end of April 2015, their technology was interested in Western Union, and at the end of May 2015, the Commonwealth of Australia.
The company has failures as well, for example, a $ 700,000 fine, issued in 2015 by Ripple Labs for violation of bank secrecy. But one more success of that year was the launching of the office in Sydney, Australia.
What is RippleNet?
RippleNet connects banks, payment providers, digital asset exchanges and corporates via RippleNet to provide one frictionless experience to send money globally.
RippleNet provides the ability to connect through various payment networks with instant settlement on request. It is always confidence because you can track funds in real time. Furthermore, it has low operating and liquidity costs.
Ripple is better than other blockchain systems that you will find because it is developed on the most advanced blockchain technology. It allows scalability, as well as security when interacting with different networks. Ripple even gives users additional access to the fastest, as well as the most scalable digital assets – XRP, used for payments in the world.
What is XRP?
XRP was specifically created for enterprises as an option to provide liquidity in cross-border payments. Banks can use XRP to obtain liquidity in real time, without the need to pre-fund nostro accounts. Payment providers use it to enter other markets, improve the speed of payments settlement or reduce the cost of foreign exchanges. You can buy or exchange XRP on several popular cryptocurrency markets.
Compared to other cryptocurrencies, XRP is installed incredibly fast, taking only four seconds. For comparison, ETH takes two minutes to settle, and the BTC takes more than an hour. Traditional systems are even worse, from three to five days. XRP also has high scalability, processing 1500 transactions per second. XRP can even be scaled to handle the same throughput as Visa. For comparison, ETH has only 15 transactions per second, and the BTC only processes three to six transactions.
One more advantage of XRP is that it is circulated around the world through open source technology. The set of validators always increases, improving the system.
XRP has proven its stability and management for five years, it is more than enough time to give the business confidence. Since 2012, XRP consumes negligible energy. A special team of engineers guarantees that this trend will continue.
As of September 17, 2017, Ripple conducted 6,462,128,816 XRPs with a distribution of 38,531,538,922 XRPs. 55 billion XRP should have been placed in escrow, which will happen by the end of the year. This allows investors to mathematically confirm the maximum amount of XRP, able to enter the market.
How scalable is RippleNet?
RippleNet is surging all over the world. At the moment you will find digital asset exchanges, payment providers, banks and much more. All these organizations process and provide liquidity payments through RippleNet, expanding their cross-border payment services. There are more than 100 customers and 75 commercial deployments.
The list of organizations using RippleNet includes numerous financial institutions, which you have certainly heard of, and, obviously, regularly deal with them. Only a few of them include the Bank of Tokyo-Mitsubishi UFJ, RBC, Santander, Standard Chartered, Credit Agricole, Westpac, Axis Bank, UBS, SEB, SBI Remit, UniCredit, and BMO.
xCurrent for payment processing
xCurrent allows banks to process payments for their customers worldwide. Due to this decision, banks instantly fix payments across borders, including end-to-end tracking. Banks send messages to each other, confirming payments in real time before the transaction starts and confirming its delivery.
xRapid for liquidity
xRapid allows payment providers to settle the liquidity on request. Liquidity costs are generally high, as payments in markets that still arise usually require that the accounts in the national currency are prepaid. Using XRP, xRapid provides on-demand liquidity, reducing costs, while allowing emerging markets to use payments in real time.
xVia for sending payments
xVia is what companies use to connect to RippleNet and send payments. This is a standard payment interface with a simple API and does not require the installation of software. Users can seamlessly send payments around the world in a completely transparent way using xVia. They can even attach rich information, such as invoices. xVia allows you to track, as well as confirmation of delivery, including in wallets and other non-traditional networks. Through global payments in real time, xVia exempts capital by simply using currency accounts.
Ripple and RippleNet can be a very useful tool for banks and other financial institutions, as well as all type companies. Banks can use it to generate new revenue, while payment providers will benefit from expanding their accessibility. For legal entities, Ripple simplifies payments. In addition, the exchange will benefit from the increase in volume.
Ripple is truly a global company with offices around the world. These offices are located in San Francisco, London, New York, India, Sydney, Luxembourg, and Singapore. The company’s management combines experience in financial services, compliance, and technologies that span decades.
The team includes the general manager of Brad Garlinghouse, the head of the department of strategic accounts Markus Tremacher, chief compliance officer Antoinette O’Gorman, chief cryptographer David Schwartz, technical director Stefan Thomas, vice president of finance Cameron Kinloch, vice president of business development Patrick Griffin and SVP Global Sales John Mitchell. The Board of Directors has experience in the field of politics, regulation, and finance.
Brad is the CEO of Ripple and a member of the Board of Directors. Prior to Ripple, Brad served as the CEO of file collaboration service Hightail. From 2009 to 2012 he was the President of Consumer Applications at AOL and prior to that he held various executive positions at Yahoo! from 2003 to 2009, including Senior Vice President.
Earlier in his career, Brad helped to pioneer the VoIP industry as CEO of Dialpad Communications. He currently serves on the Board of Directors of OutMatch and has held board positions at Ancestry.com and Tonic Health.
The first addition to the exchanges: August 4, 2013
Price: 1 (XRP) = 0.005 $
The extraction of coins is not embedded in its concept, because the system does well without miners – they do not need it.
Since the start of the project, which occurred in 2014, 100 billion XRP coins have been “nicked” and their further products are not envisaged by the system. It is noteworthy that out of this hundred of billions of ripples only 20 are common among users, the rest are wholly controlled by the developers.
This raises a lot of controversy about the fact that the project is not decentralized and the creators of cryptocurrency can easily influence its course. To calm the raging masses, Ripple Labs personally blocked access to coins with smart contracts and from time to time can receive small portions of the amount for the development of the project.
Since there are no miners in the system, the role of confirmatory bodies is played by trusted nodes. There are a lot of them in the network, but again, only the user who passed the Ripple Labs certification becomes the node. So with decentralization, it is still a problem and it confuses many users.
The anti-spam mechanism is based on charging a commission when making transactions in the amount of 0.00001 XRP. The commission taken from the user is destroyed, and the total number of coins is steadily declining.