Ripple (XRP): What is it?
Ripple xrp by Crypto Nation – September 06, 2021
By Crypto Nation – September 06, 2021
Summary of Ripple's crypto card:
Ripple’s fundamental data
- Name: Ripple
- Symbol: XRP
- Type: Payments, Business Solutions
- Consensus: Ripple Protocol Consensus Algorithm (RPCA)
- Year of creation: 2012
- Founders: Arthur Britto, Jed McCaleb and David Schwartz
- Official website: ripple.com
- Mainnet: Yes – xrpcharts.ripple.com
- Whitepaper: ripple.com/files/ripple_consensus_whitepaper.pdf
- Code: github.com/ripple
- Twitter: @Ripple
Elrond market data
Below are the basic market informations regarding this cryptocurrency:
- Price: It is expressed in dollars ($). There is also its percentage change (%) over the last 24 hours.
- Rank: Ranking of this cryptocurrency among all those referenced on CoinMarketCap. This is done according to the market cap.
- Market cap: Market capitalization represents the total dollar ($) value of all coins in circulation.
- Volume: It represents the total dollar ($) amount of the cryptocurrency in question traded over the last 24 hours.
What is the goal of the Ripple project?
The Ripple and the token XRP form a crypto allowing secure financial transactions, fast and cheaply. Its network supports 1,500 transactions per second!
The project is mainly linked to banking institutions such as American Express, BBVA and Crédit Agricole. This can allow them to make currency transfers anywhere in the world at a lower cost and much more efficiently, compared to the traditional system.
The origin of the project
Ripple was born in 2004 by Ryan Fugger. Its main goal was to create a decentralized system allowing individuals and communities to create their own currency. The first version of this system appears under the name of RipplePay.
In parallel to this, in 2011, Jed McCaleb developed a virtual currency system where transactions are verified by a new consensus, very different from Bitcoin.
Mid 2012, Jed McCaleb hires Chris Larsen. Together, they talk about their concept of virtual currency to Ryan Fugger. Following this, Fugger handed over control to Chris Larsen and Jed McCaleb, who co-founded the company OpenCoin.
It is with OpenCoin that the real development of the Ripple protocol (RTXP) and its payment network began.
In September 2013, OpenCoin changed its name to Ripple Labs and its payment network officially became open source.
On October 6, 2015, Ripple Labs was renamed Ripple.
What is its use?
Rather than replace the entire banking and payments system, Ripple has chosen to provide a way to facilitate fast payments.
Its main goal is to provide an asset exchange protocol, offering a payment solution that works in a similar way to the traditional system, but using blockchain technology.
The XRP token is used for value transfers within the network, allowing the exchange of both fiat currencies and cryptoassets.
Management of the economy (as of 06/09/2021)
Ripple is deflationary, with each transaction carried out, a small part of XRP disappears. The number of tokens currently in circulation is 46.5 billion, out of the 100 billion that made up the total supply.
The sharing of XRP tokens:
- 39 billion were distributed.
- 6 billion were kept by the Ripple company.
- 55 billion were stored through an “escrow” (system using a trusted third party, which manages the distribution of new parts).
Diagram of the evolution of the cryptoactive
Where to store your cryptocurrency
If you prefer to take your cryptocurrencies out of centralized exchanges, you can store your Ripple via various solutions:
- Atomic Wallet, a software wallet or in the form of a mobile application, very complete and secure.
- Trust Wallet, bought by Binance, it has become the benchmark mobile wallet.
- Ledger, very secure wallet hardwares, the best known being the Ledger Nano S.
- Metamask, the benchmark decentralized wallet.
More details on the different types of cryptocurrency wallets on our dedicated page, accessible by clicking here.
Our opinion on this project
Ripple is now one of the dinosaurs in the cryptocurrency ecosystem. Yet it always has been in the top 10 of the largest capitalizations and its technology is far from obsolete!
Its very high performance protocol, especially for its time, appeals to a world of banking professionals and institutions, by making international exchanges easier.
Low costs, low transaction times and the number of simultaneous transactions, a mix that has it all.
But Ripple is also controversial, a war with the SEC (Securities and Exchange Commission) is raging. Nonetheless at the time of writing, Ripple seems well on the way to get away with it.
The lack of transparency of certain fund management and distribution created this turmoil. The founders of the project own a huge number of XRP tokens and because of this, the asset may appear to be controlled, or at least, some pressure may be exerted on it. In addition, this does not really correspond to the concept of decentralization advocated by the project.
However, Ripple remains a powerful cryptoactive and we are far from being done talking about it!