People are addressing questions to me what it claims to go on behind the closed doors of the crypto world. In my new review about Ripple with a little help of the experts — who have been examining it since its beginning in 2012 up to now — I shaped my view on the work of this digital currency including its payment network with references to official and unofficial sources.
I am sure the future belongs to digital money, but which would be the best to choose is still a question for me. So, I took upon reviewing another sort of the latter and found many pros in line with cons in its favor. Of whom am I speaking? This article is a tribute to Ripple.
I would described their goal as “really wanted” as letting Ripple users going round charges for currency exchange, fees, processing delays implied by existing financial institutions is a fantastic chance to take. Three parts – RTGS (the full name is Real Time gross settlement system), remittance network and exchange – compose Ripplepay, later simplified to XRP, by the way.
And we got to the point where I probably would have stayed longer. The consensus between validators is ensured by a shared public database, which belongs to both individuals and banks. Store the record as about it I will be talking later.
Now nobody is surprised to see Ripple protocol XRP ensuring the operations between 2 parties, but swift and fee-free exchanging from gold to fiat, even the airline miles impresses and draws attention, including the one of mine. You see my view the crypto world gives a wider field of research and development plus improving the existing system.
1. How Does Ripple Work?
We accepted the third parties participation as granted, but that is past ages. Soon you will find your account in it. For now, let me ask you a question. Would you trust more the bank workers or a shared and public database? This is exactly what progressively-minded people mean.
Having enhanced security of the distributed open source internet protocol, Ripple makes away with any network or bank which engage in the process now. They claimed that the 2-way verification, confirming identity, list of verified unique nodes for transferring XRP are enough. You and I may see the events proved them right.
2. How Many XRP There?
What a smart way to stop speculating the price of XRP coin by setting the limit on the amount! The market is supplied with a total of 100 billion Ripple coins, with a trading XRP sum under the control.
3. Is Ripple Like BTC?
It is better than BTC. Ryan Fugger, David Schwartz, Arthur Britto,coded Ripple, and from the first sight, both share many features: acquire a digital and mathematical form, have a mining limit, support P2P, are secured. But all it takes to understand the difference is to conduct a more thoughtful benchmarking analysis. I decided to pick them to pieces and what I have discovered:
- Ownership: a private enterprise as compared to public Bitcoin;
- Developers: again XRP dev group is larger;
Ripple is capable of neglecting energy cost, settling the fixed amount and making any transaction in 3 seconds. The benefit is completely clear now.
Words of Caution
There are still reasons of actually waiting a bit with investing into XRP as it has a centralized control. With all this going on, what would stop the government or regulating body from interfering into the process with time?
Since such a case happened in 2013 with FinCEN fine and violation taking into account by Ripple, I’d better hold off on my plan, though I should confess I like the idea of recognizing regulated gateways and recommending them only.