Ripple – an open source distributed payment system that uses blockchain technology to send money around the world. Ripple is an infrastructure technology that enables financial institutions to conduct cross-border transactions in real time for their customers via RippleNet. The distributed tools and a global network offer speed, security and reach at lower billing costs than ever before.
RippleNet is a decentralized global network of banks and payment providers that leverage Ripple’s distributed financial technology that enables real-time messaging, clearing, and processing of financial transactions.
The decentralized network is based on an agreement between Ripple and the network participants, who all use the same technology and adhere to uniform payment rules and standards.
The creation of waves
Vancouver-based web developer Ryan Fugger first created a predecessor to the Ripple payment protocol, Fugge. Fippleer’s first iteration of this system, RipplePay.com, was introduced in 2005 and was designed to provide members of an online community with a financial service with secure payment options through a global network.
OpenCoin, the company that creates the Ripple protocol, was co-founded by CEO Chris Larsen and CTO Jed McCaleb. They started developing a new payment protocol called Ripple Transaction Protocol (RTXP), based on the concepts of Ryan Fugger.
In May 2011, they began work on a digital currency system where transactions were verified through a consensus among members of the network rather than through a mining process. The company also created its own form of digital currency called XRP.
Today, Ripple’s global payments network continues to grow. The developers have over 100 customers, more than 75 commercial deployments underway, and a common set of payment standards that govern all transactions on the network.
Ripple executives bring together decades of technology, financial services and compliance expertise.
Chairman Brad Garlinghouse held various leadership positions at Yahoo! from 2003 to 2009, including Senior Vice President. From 2009 to 2012, he was President of Consumer Applications at AOL before joining Ripple. He later was CEO of a file collaboration service Hightail.
Asheesh Birla, an industry expert on blockchain, is Product’s SVP at Ripple. He joined in 2013 to lead the development of the product suite. Asheesh began his entrepreneurial career 15 years ago in Silicon Valley, where he founded a content management company that he later sold to Thomson-Reuters and became its VP of Global Technology in 2005.
Patrick Griffin, an SVP for strategic growth at Ripple. Prior to joining Ripple, Patrick began his career as a long / short equity trader in telecommunications, media and technology before helping build the global digital strategy for Vivendi’s media real estate. Patrick also worked for Jumio, an internet payment and identity company.
Cory Johnson is the Chief Market Strategist. Prior to Ripple, Cory was a hedge fund portfolio manager at Kingsford Capital Management and a journalist at Bloomberg and CNBC for high growth tech companies.
The list of investors includes globally recognized venture capital companies and strategic investors.
Ripple offers a number of payment solutions to its customers, including xCurrent, xRapid, and xVia.
- xCurrent is Ripple’s enterprise software solution that enables banks to instantly process cross-border payments with an end-to-end tracking system.
- xRapid was developed for payment providers and other financial institutions looking to minimize liquidity costs while improving the customer experience.
- xVia is intended for companies, payment providers and banks that need to send payments via a standardized interface over various networks. No software installation is required with xViam as users can seamlessly send payments worldwide, with payment status being transparent.
Growing global network
Banks, payment providers, and digital asset exchanges can use RippleNet to process payments while providing liquidity. The payment system therefore creates a new, competitive cross-border service for its customers. According to Ripple, by joining their growing global network, financial institutions will be able to instantly, reliably, and inexpensively process their customers’ payments anywhere in the world.
With offices in San Francisco, New York, London, Luxembourg, Mumbai, Singapore and Sydney, RippleNet has over 100 customers around the world. The company announced in April 2018 that five more companies in Europe and Asia will be using xVia to enable seamless payments over RippleNet – FairFX (UK), RationalFX (UK), Exchange4Free (UK), UniPAY (Georgia) and MoneyMatch ( Malaysia).
American Express is also connected to Ripple’s xCurrent for cross-border transactions, reports Daily Hodl.
“Ripple offers instant point-to-point conversations between the sender and recipient of funds,” said Colin O’Flaherty, Vice President of American Express, at Money20 / 20 Europe 2018 in Amsterdam, Europe’s largest fintech event.
“And that offers a real opportunity to solve most of our customers’ problems.”
Brad Garlinghouse, CEO of Ripple, believes Ripple will experience mass adoption in the years to come as countless banks and financial industries begin to show interest. He also insists that Ripple be acquired by some big banks before the end of the year.
XRP (XRP / USD) is the home currency of the Ripple network. Price tracker CoinMarketCap.com ranks XRP as the third largest cryptocurrency with a total market capitalization of over $ 26.5 billion and a daily transaction volume of $ 241 million.
Of the 100 billion XRP created, 20 billion were withheld by the creators, the founders of Ripple Labs, the rest went to Ripple Labs. As of March 2015, Ripple Labs owned 67% of the original 80%. In May 2017, Ripple pledged to invest 55 billion XRP (88% of its XRP holdings) in a cryptographically secured escrow to address concerns about XRP supply.
Where can I buy XRP?
XRP can be purchased on more than 60 cryptocurrency exchanges worldwide. Each exchange has a different process for buying XRP.
In order to buy XRP on one of the world’s largest crypto exchanges, Binance, a Bitstamp account must first be opened and verified, and then a deposit must be made into the account.
To open a Bitstamp account, visit https://www.bitstamp.net/account/register/ and fill in the required information. After registration, the username and password will be sent to the email address provided.
To submit a confirmation request, click here to fill in the required information and upload the documents. Click SEND EXAM REQUEST to continue.
After successful verification, users can deposit funds and buy XRP.
To make a deposit, users need to visit https://www.bitstamp.net/account/deposit/ and select a preferred transfer method (SEPA or International Wire) on the left side of the menu.
Bitstamp’s bank details are given on the next page. In order to deposit funds into the Bitstamp account, users must transfer funds from a bank account held on their behalf to the bank account provided.
To buy XRP you have to choose the right market (XRP / USD, XRP / EUR, XRP / BTC) depending on which currency you are buying XRP in.
The next step is to visit the Buy / Sell section, select BUY XRP and enter the amount. Then click the Buy XRP button to confirm the transaction.
XRP is then purchased and added to the XRP balance.
Ripple versus competition
The main difference from Bitcoin is that Ripple uses a different method to get network consensus. Used during Bitcoin Proof-of-Work (Mining). Ripple uses an iterative consensus process. This makes transactions in the Ripple process faster than in Bitcoin, as they only take a few seconds.
The Bitcoin network tracks the movement of bitcoins, while the Ripple network can keep track of all kinds of information and thus show the balance of an existing currency.
While Bitcoin is a decentralized digital currency, Ripple is a decentralized transaction network.
There is a gradually increasing number of bitcoins (currently they are moving towards 21 million tokens). There are now a fixed number of XRPs (100 billion).
Brad Garlinghouse, CEO of Ripple, claims that Bitcoin cannot compete with XRP in terms of transaction speed. In an interview with CNBC, Garlinghouse praised XRP as “a thousand times” cheaper and faster than Bitcoin and declared XRP the most efficient digital asset for cross-border transaction processing.
Ripple (XRP) is also giving the SWIFT bank transfer system a headache. The two face tough competition for the cross-border payments market. However, the two go different technological paths, since Ripple runs on a blockchain, but SWIFT does not.
Although Ripple has been in the market for less than 10 years (up from 45 years in the SWIFT market), Ripple has worked with over 100 banking institutions and is constantly adding new subsidiaries. This could result in Ripple catching up with SWIFT in less than two years.