Ripple is a crypto technology that features a protocol, digital payment network, and cryptocurrency called XRP. XRP's coins are a unique pre-mined form of cryptocurrency.
Ripple was released in 2012 and uses open-source software instead of blockchain technology that provides quick and inexpensive transactions.
Ripple is different from Bitcoin because it was never meant to be a simple form of payment. It was intended to be the primary choice for international transactions around the world.
The currency has its own platform, and users can create their own platform using RippleNet.
RippleNet – What Is It Exactly?
RippleNet is a network of payment-providers like money service companies and banks that use solutions created by Ripple to send money around the world. It also allows for payments in any currency with a minimal transaction fee of $0.00001 to discourage DDoS attacks against the platform.
XRP represents the value transfer across the network, and it is a token. It is meant to be the intermediary for other exchanges managing fiat currency and cryptocurrencies.
If you want to exchange Euro for British Pounds, to minimize the commission, the platform will handle the transaction as euros for euros and pounds for pounds. The fee on Ripple would still be $0.00001.
The Creators of Ripple
The working prototype for Ripple was developed in 2004. The company behind Ripple received funding from investors in 2013.
The founders of Ripple include Chris Larsen
and Jed McCaleb
. Chris Larsen is a privacy activist, business executive, and angel investor. He co-founded several financial service businesses and is considered to be the wealthiest person in cryptocurrency.
Jed McCaleb is an entrepreneur and famous programmer. He also helped found several cryptocurrency businesses.
The RPCA of Ripple
Ripple is different from Ethereum and Bitcoin because it does not use a blockchain. It makes use of its own patented technology called the protocol consensus algorithm.
It means that each node is in agreement. The concept uses a consensus mechanism that works its way through several servers to confirm transactions. Every node has to agree to the transaction before any action is taken.