What is Ripple? XRP Explained

RippleLabs is a for-profit company created to make international money transfers cheaper and quicker. They also offer a cryptocurrency called XRP.

What is Ripple ?

Ripple is a real-time gross settlement system, currency exchange, and remittance network created by Ripple Labs Inc., a US-based technology company. Released in 2012, Ripple is built upon a distributed open-source protocol, and supports tokens representing flat currency,

What is RippleLabs ?

Ripple Labs, Inc. is an American technology company that develops the Ripple payment protocol and exchange network. Originally named Opencoin and renamed Ripple Labs in 2015, the company was founded in 2012 and is based in San Francisco,

What is Ripple (XRP) ?

Ripple (XRP) is a type of digital cryptocurrency, utilizes peer-to-peer transactions, mining, and other technological feats into a modern-day asset. Use this page to follow news and updates regarding the Ripple price in India, create alerts, follow analysis and opinion and get real-time market data.

Difference between Ripple and XRP

The difference between ripple and XRP Ripple labs is the company behind XRP, which is the cryptocurrency kinda like how apple made their iPhones. XRP is the product while ripple labs is the company that created it in short. Ripple Labs aims for banks and payment providers to send money internationally quickly and cheaply now you may not know this but, there’s a big problem when you want to send money from one country to another country sometimes it takes days.

It is usually very expensive and in some countries, you even have to do illegal things to make it happen. So immediately ripple labs are trying to solve a big common problem right now most international transfers use swift which is a protocol that makes up half of all international wires and moves.

Around six trillion dollars, each day but like I said it’s very slow and takes a lot of work and the fees are pretty high. Now those fees are collected either from transferring through multiple banks or through currency conversions because currency conversions is a big one too not all banks will be able to quickly cheaply and reliably convert the money that you’re sending to the desired currency.

How does ripple labs works ?

Product is something called ripple net also now known as x current technically. They’re the same thing ripple net is the network behind the x current product x current is a decentralized system using a consensus model called the unique node list in short.

This is one of the products of ripple labs that is supposed to fix the slow bank issue, if you want to transfer your money you go to ripple net and have them help you. It’s supposed to be quicker and cheaper than swift along with that they plan to be anti-money laundering compliance and even include fraud detection.

In fact, they have fixed this problem so well that there are already a bunch of big institutions with them American express being one of them. But there are also like 50 other big banks that have joined them. So already you can kind of see how this stuff is kind of complicated and not for everyday transactions right well kind of ripple labs also started a cryptocurrency.

The transactions are confirmed in less than five seconds and the cost of each transaction is like two ten thousandths of a penny secondly the blockchain can handle around 1500 transactions per second which is a lot compared to the other blockchains out there and they do claim to be able to reach visa speeds.

What is Centralization ?

Centralization basically ripple labs sets up a list of a bunch of people that they trust and then pretty much the majority decides, what gets added to the blockchain or not they don’t use work or a staking feature but instead majority rule from their list of trusted sources.

Centralization basically one of the biggest benefits of cryptocurrencies is decentralization where we basically get away from banks being able to control all of our money but if XRP is centralized why would we use it from what I understand ripple labs have no control over the network after publishing their initial RTXP protocol which runs the XRP currency but ripple labs can maintain it in the same way the nodes of bitcoin and the Ethereum Foundation can maintain their blockchains and suggest updates to reiterate this in short

XRP can run without ripple labs help but some of the other products that ripple labs offers cannot run without XRP one of the biggest risks of XRP are the fact that a bunch of validators or those people on the unique node list could come together collude and then make fake transactions spending your money without you agreeing to it.

Like I said there’s no reward for validators they get no mining fee or validating staking reward and they’re just on the list just because anyways moving on let’s talk about their sec issues so the sec which is some agency in the united states is arguing that XRP is actually security, not a currency this is actually a pretty big lawsuit because it sets precedence for future similar cryptocurrencies

The sec says that ripple co-founders are treating XRP as a security kind of like a stock or a bond and if they are the regulations around it should change now this actually says more about the united states government than ripple labs in short the united states government is unhappy that XRP may be similar to a stock but these sec issues are definitely unrelated to most of the centralization issues.

How does XRP works ?

XRP can be divided up into six decimal places and they call the smallest amount a drop which is .0001 XRP so back to the blockchain there’s also no reward for running your validator which is important because I can’t understand why someone would want to do it without a reward unless you wanted to team up and make fake transactions and there are a lot of people out there who claim that XRP is too centralized.

LEAVE A REPLY

Please enter your comment!
Please enter your name here