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Coinhouse SAS with a capital of €210,000, RCS Paris 815 254 545, headquarters: 14 Avenue de l'Opéra 75001 Paris – support@coinhouse.com. Registered with the AMF for activities related to the purchase/sale of digital assets against legal tender, the exchange of digital assets for other digital assets, and the custody of digital assets for third parties under the registration number: E2020-001.
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Ripple (XRP) is a crypto-currency designed to facilitate fast, secure and low-cost international payments.
Unlike other cryptos that focus on total decentralization, Ripple has teamed up with numerous financial institutions to create an efficient payment network, enabling cross-border transactions in seconds.
Used primarily for on-demand liquidity and funds transfer, Ripple stands out for its integration with banks and businesses, offering a hybrid solution between the traditional world of finance and blockchain technology. Buy XRP with Coinhouse.
Ripple was conceived back in 2004 by Ryan Fugger, a Vancouver-based web developer, as a decentralized digital monetary system.
It was originally named RipplePay.
Ryan Fugger’s idea was to make it easy for individuals and communities to develop their own virtual currency.
The RipplePay system was launched in 2005, still with the idea of offering secure payments worldwide.
In 2012, Jed McCaleb of the eDonkey network and Chris Larsen, founder of E-Loan and Prosper, approached Ryan Fugger with their idea for a new digital currency.
The idea was based on a system of verification by consensus between members of the same network, rather than on mining, like Bitcoin.
Ryan Fugger handed over the reins of RipplePay.
McCaleb and Larsen rename the company OpenCoin. The goal of the ripple project Their objective was clear: to offer payment solutions for banks and financial institutions.
They developed a new payment protocol, based on the concepts created by Fugger.
They call it the Ripple Transaction Protocol (RTXP).
By 2012, inspired by the creation of Bitcoin, Ripple’s leaders were deploying their own blockchain to provide exchange services on several currency pairs, but also to store all the accounting information of network participants.
The blockchain’s native cryptocurrency, XRP, is created at the same time.
In 2013, OpenCoin changes its name to Ripple Labs.
The company launches numerous projects, some of which are now discontinued.
Ripple Labs, for example, proposed Codius in 2014, the aim of which was to develop smart contracts.
It wasn’t until 2015 that the company took the name Ripple. Ripple’s promise Ripple’s promise is to enable secure interbank exchanges verified by network participants via a consensus mechanism.
All in real time with an open source solution.
On June 13, 2016, the New York Department of Financial Services awarded Ripple a virtual currency license.
In October 2017, the company sets up partnerships with hundreds of financial institutions.
Ripple’s virtual currency, XRP, is now a benchmark in cryptocurrencies.
Used mainly by banks, XRP serves as a transitional currency on its platform for more efficient cross-border transactions than traditional systems such as SWIFT.
See Price Ripple.
Unlike the Bitcoin blockchain, the Ripple blockchain is not based on the Proof-of-Work consensus algorithm.
Nor is there any mining to verify transactions.
The network works differently, reaching consensus using its own algorithm.
There is no remuneration for running the network, and it is not possible to mine XRP: as we have seen, tokens are issued by the Ripple company.
The decentralization of the proket also raises questions.
It is possible to be a validator of the XRP blockchain without requesting authorization from Ripple.
But here again, Ripple recommends that its customers use a list of identified trusted participants to validate their transactions.
This list is known as the Unique Node List.
Of this list, around half of the nodes belong to the Ripple company, which strongly calls into question any idea of decentralization of the project.
Being a validator on the Ripple blockchain is very restrictive.
Compared to the Bitcoin blockchain, you need much more space on your computer.
The Ripple company has strict requirements: you have to be able to maintain the node 24/7, integrate updates very quickly and be identified.
All of which severely limits the number of participants.
In theory, then, the Ripple blockchain functions as an open source distributed ledger, which can endure even if the company ceases to exist, and to which anyone can contribute.
In reality, however, the company exercises tight control over the validators and, ultimately, over all the transactions that pass through the network.
Ripple and its cryptomarket have undeniable advantages, but you need to think carefully before buying or selling XRP.
In short, Ripple has both advantages and disadvantages.
Advantages include fast transactions, high levels of security and low costs.
Ripple also acts as a bridge between real and virtual currencies.
But these undeniable advantages are outweighed by a number of disadvantages:
The future of Ripple and XRP is complex to predict.
The company has won over powerful institutions such as the National Bank of Abu Dhabi.
The latter now uses XRP to carry out transactions involving exorbitant amounts.
Today, the XRP token is one of the world’s top three cryptocurrencies, just behind Bitcoin and Ethereum.
However, XRP’s volatility remains an obstacle to predicting its long-term evolution.
It may be tempting to buy when the price falls, but it fluctuates too much to guarantee any real capital gains later on.
Caution is therefore called for, even if XRP’s future looks promising.
The Ripple network is currently offering a three-product package, designed as a payment system solution for banks and other financial institutions.
The three main products are: xRapid, xCurrent and xVia.
xRapid is undoubtedly the product of choice, as it is an on-demand liquidity solution that uses the XRP token as a global relay currency between different fiat currencies.
The system offers shorter confirmation times and much lower fees than conventional transfer methods.
Let’s take another example: a Spanish bank A wishes to send €10 million to a Peruvian bank B. The latter first converts the €10 million into XRP from “liquidity providers”, sends the XRP in a matter of seconds, and the receiving bank exchanges the XRP from other “liquidity providers” for €10 million in Peruvian Sols.
There may still be difficulties linked to the volatility of XRP, but this is unlikely given the speed of the operation.
Such a service is of interest to banks because it enables much faster transactions than traditional inter-currency transfers.
The value of the XRP token could therefore appreciate if the xRapid system confirms its success on a large scale.
xCurrent is another solution designed to enable instant settlement and tracking of cross-border payments between members of the Ripple network.
But unlike xRapid, the xCurrent solution does not use the XRP cryptocurrency by default.
Keep in mind that xCurrent enables cost-effective, real-time payments between financial institutions.
It is based on an asset exchange system in the form of IOU (I Owe You).
Literally meaning “I owe you”, this is simply an informal document acknowledging a debt.
IOUs can be sent at extremely low cost, in the order of fractions of an XRP.
Financial institutions are therefore also interested in this solution.
xCurrent incorporates a messaging service that ensures peer-to-peer communication between financial institutions connected to the Ripple network.
It enables information to be exchanged on fees, exchange rates, payment details and the time taken to disburse funds.
xCurrent also supports cryptocurrency transactions.
Less essential, xVia facilitates the work of banks through a standardized programming interface (API) that enables them to interact within a common framework, without having to support multiple payment network integrations.
To our knowledge, these products are not widely used at present.
One of the major problems with the protocol is that XRP, which is supposed to act as a currency of exchange between different interlocutors, is not stable: its rate fluctuates against the dollar, for example.
What’s more, the various products on offer are all based on the idea that customers only keep XRP for the duration of the transaction, and get rid of it as quickly as possible.
However, new protocols with a stable currency have since appeared, such as Tether’s USDT, and are being adopted much more quickly, as they do not have this problem.
XRP tokens, the native crypto-currency of the Ripple platform, are primarily used to facilitate transactions on the RippleNet network.
Here are the main uses of XRP tokens:
Ripple is a highly centralized network, under the control of the company that manages it.
Money creation depends entirely on the goodwill of its managers.
The XRP token has no purpose other than speculation, and is not stable, which is far from ideal for a medium of exchange.
The vast majority of XRP tokens are held by a handful of people, and the US authorities are accusing the company of manipulation.
We urge you to be cautious about investing in XRP.
Just because the price is low compared to Bitcoin doesn’t necessarily mean it’s a “good deal”, as you need to consider the total capitalization, which of course depends on the number of tokens in circulation.
Caveat emptor is a Latin expression literally meaning “let the buyer beware”.
Here, it takes on its full meaning.
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