What is Ripple? A guide to world’s 3rd biggest crypto

what is ripple

Interoperability has been a major challenge facing Bitcoins and most altcoins since the introduction of digital currency to the commercial world. As a result of the flaw in most cryptocurrencies to expedite settlements across different countries and in different currencies, users have to pay exorbitant transaction fees.

Therefore, Fast cross-border payment support is what most cryptocurrencies need to spread their reach across countries and continents. A digital asset that provides this solution is Ripple. This coin boasts of the most advanced, scalable and secured blockchain technology that interoperates between diverse settlement networks.

What is Ripple?

  • Ripple is both a payment protocol and a payment network.

As a network, Ripple brings together banks, digital assets exchange, payment providers, and corporate through its infrastructure called RippleNet. The RippleNet platform gives users friction-less experience to send money globally.

  • As a payment protocol, Ripple possesses the most scalable asset for expediting real-time global payments, called Ripple Coin/XRP.

Based on market cap, Ripple cryptocurrency XRP has consistently been ranked in the top five digital currencies for many years from the time of its introduction to the cryptocurrency space in 2012, and right now there is a long list of banks using Ripple.

Who is behind Ripple Coin?

Ripple was launched in 2012 and owned by a company known as ‘Ripple.’ This coin has a rich history that can be traced back to 2004 before its actual launch in 2012. Ripplepay was developed by Ryan Fugger in 2004 as a global online secured payment option.

The idea of the current Ripple Network was put forward by Jed McCaleb and later designed and built by Artur Britto and David Schwartz in the year 2011. Chris Larsen then became part of the Ripple team in August 2012. This team took over from Ryan Fugger after realizing their ideas and presenting it to him.

Ripple Labs, initially called OpenCoin, has been the leading developer of the Ripple Network. The change in name is connected to several partnerships the company got built with different companies.

What is the technology behind Ripple?

ripple net technology

  • The Ripple system runs on a blockchain and is therefore based on similar principles to those of Bitcoin.
  • A blockchain is a digital, decentralized public ledger for recording all the transactions of a given cryptocurrency.
  • You can imagine a blockchain as a spreadsheet reproduced across a network of computers; the several computers are required to update the spreadsheet frequently as a result of their activities.
  • The source code of Ripple is privately owned by the company; unlike Bitcoin whose source code is opensource. This implies that an outsider cannot verify Ripple’s source code.

The Ripple Network has two kinds of participants. The Network Users and Network Members.

Network Members include banks, payment providers and some business who accepts ripple as payment. These are the enablers of the RippleNet, and their mandate is to build trust between the Network Users and verify transactions. Network users include platform businesses, payment providers, corporate treasuries, banks, as well as solo clients. These are the originators of RippleNet, and each of them looks forward to making global payments with their various associates.

  • Ripple’s Software, xCurrent gives the Network Users and Network Members a cross-border settlement solution while lowering their total cost of the payment.

Each member of RippleNet is interconnected through xCurrent; a global RTGS system (Real-Time Gross Settlement system) that lets Network Members (banks and payment providers) send, clear, receive and settle transactions. This is carried out with enhanced transparency speed, and efficiency across banks and payment providers in the global RippleNet’s coverage.

  • xCurrent is developed around an open, natural protocol, that is interoperable between various ledgers and payment networks (Inter-ledger protocol technology).

It is an end-to-end encrypted remittance platform secured cryptographically, with unalterable transactions and information redundancy.

  • For smooth transactional procedure between different payment providers and banks, xCurrent is designed to comply with each Network Member’s compliance, privacy and risk requirements.

This synchronization with payment providers and banks existing infrastructure lessens business disruptions.

xCurrent has four solution components which include:

  • Messenger: This is a bidirectional messaging platform that effectuates communications between payment providers and banks in the Ripple Network.

Messenger lets the Network Members exchange Know Your Customer (KYC), fees, payment details, risk, delivery time frames, and any other information associated with transactions.

  • Validator: This is a cryptographic segment of xCurrent the sanctions the success or failure of a transaction.

Validator orders the movements of funds across the ledgers of various Network members. It is the single source of truth about the nature of each transaction carried out on RippleNet.

  • ILP Ledger: This component of the Xcurrent tracks all liquidity, credits, and debits across Network Users and Network members on Ripple Network.
  • FX Ticker: Different ledgers offer various exchange rates that might impede the speed of a transaction.
  • FX Ticker smoothens the exchange process between various ledgers by allowing liquidity providers to share foreign exchange rates.
  • The FX Ticker also monitors all currencies, accounts, and authentification credentials of the ILP Ledgers.

Pros of RippleNet Technology

  •  It is the best digital currency for payments, as made evident by multiple Ripple news.
  • RippleNet, the Ripple Network is one of the few cryptocurrencies with a clear use case. This guarantees the safety of the transactions conducted by various Network Users.
  • Unlike other blockchains that take lengthened periods to settle transactions, RippleNet spontaneously settles global transactions across different networks and ledgers
  •  Ripple news reveals that it is the only digital asset created to inter-operate between different financial institutions registered across the world.
  • Due to its implementation by several financial institutions, RippleNet is continuously evolving regarding reliability, security, usability, and scalability.
  • Since banks and other payment providers using RippleNet have a steady operating ground regarding transactions and communications, the blockchain technology gives low operational costs.
  • As a result of on-demand, cost-effective, high-speed, and traceable global payments it delivers, the Ripple Network offers high rates of customer acquisition and retention for its Network members.

Cons of Ripplenet Technology

  •  Compared to other blockchain financial systems such as Bitcoins, Ripple is centralized in many ways. Ripple cryptocurrency XRP is not mined.
  • The over-centralized nature of Ripple needs them to be incredibly transparent to eliminate doubts and gain users’ confidence.
  • Ripple stand a high chance of facing a threat from future competitors who might create more innovative interoperable financial systems offering more benefits than their platform.

Ripple Market Trends

  •  The current Ripple Market Cap holds at nearly $ 173,995,750,489.78 with a ledger number of around 35,738,202.
  •  Compared to any other cryptocurrency, Ripple’s XPR enjoyed the most significant growth in the year 2017.
  • The first Ripple Surge happened on 12th December 2013. The cryptocurrency sprang from a market value of $0.27 to $0.51, marking an 84% growth.
  • In the following days, XRP grew again and held at $0.75. It further maintained an upward trend up to $1.73.
  •  In January 2018, Ripple has seen its price increase to a peak of $2.23 per coin. The prices have kept on dropping and alternating between the value depending on several factors influencing the market trends.
  •  As made evident by Ripple XRP News, it is still the 3rd largest cryptocurrency ranked regarding market capitalization.
  • Compared to BTC which is the most valuable cryptocurrency based on market capitalization, XPR has proven to be easier to trade for other altcoins and fiat currencies, as it is more than just a currency.
  • Ripple predictions forecast a further upward trend due to the flexibility the coin’s payment system offer, currently installed by more than 100 banks all over the world.
  • Most Ripple News shows that its exceptional qualities play to its advantage and makes it a potential investment for many, currently, and in the future.

Ripple mining perspectives

  • Ripple Mining is an improbable venture! The cryptocurrency can’t be mined because it was pre-mined before its launch.
  • To talk about how many Ripple coins are there, the Ripple Network has a total of 100 Billion XRP, which can never increase or reduce in number.
  • This implies that Ripple is not dependent on any third-party redemption unlike Bitcoins and other altcoins.
  • Ripple makes use of Network Members, such as Banks and other payment institutions, instead of miners who fuel transactions on other blockchain networks such as Bitcoin.
  • The Network members work on a Ripple Network software-xCurrent; which consists of validators that fuel transactions.


Ripple offers a new face in the cryptocurrency space which gives not only a digital asset but also a distributed exchange platform and global payment network.

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