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Cryptomoneda Ripple, what is it for?7 Minutos De Lectura

Ripple is basically a payment network, RippleNet. Ripple is not a cryptomeda in itself nor is it based on Blockchain technology in the same sense that Bitcoin does. RippleNet is a “decentralized” payment platform based on a distributed book (“interlocking protocol” or “distributed ratio”) and free software focused on international payment development.




The Ripple network is decentralized, but not in the same sense as the Bitcoin network. The Ripple network works through a list of unique nodes authorized by the network’s central authority (list of unique nodes), in this sense it is decentralized because validation does not require intermediaries, but on the other hand the protocol is imposed by a central entity and nodes, besides being chosen by that central authority, cannot “comment”.

Thus, the main objective of Ripple is not the democratization of the financial system, as it could be in Bitcoin, but the revitalization of international transfers. In this sense Ripple does not have the “trade off” between scalability and decentralization, so Ripple perfectly scalable is currently admitting the same VISA transactions per second. In fact, Ripple maintains that full decentralization of the “book” is not necessary for its purposes and for reasons of preferred security that the nodes are limited and reliable.

“It is only a matter of time before central banks adopt blockchain to settle transfers of high-value interbank funds. “

CEO of Ripple in 2017

Ripple History




The Ripple story begins in 2004, with an idea of a certain Ryan Fugger, in 2005 the first version is created. In 2011, Jed McCaleb begins to develop XRP , a cryptomoeda that bases its value on “consensus” instead of PoW (proof of work). In 2013, Ripple launched its iPhone app and, for 2014, Ripple became the second largest cryptomoeda, the German bank Fidor accepts the Ripple protocol and its price increases by 200% . By 2015, several banks, such as Santander , UniCredit , UBS , Royal Bank of Canada and others, have accepted the Ripple protocol. 2016 Ripple license to operate in New York and the following XRP year capitalization reaches 10 billion.

Between 2017 and 2018 the XRP was revalued up to 36,000%.

What does Ripple bring?

When a national interbank transfer is made, two things can happen, either that the banks have an established relationship to make them or that they have not established and an intermediary, usually the central bank, must intervene. In the international case, the subject is complicated. To make an international transfer, the main system is SWIFT (Society for Worldwide Interbank Financial Telecommunication) in which a branch acts as an intermediary and manages the exchange and transfer of currency, this takes time and costs money . There are also other schemes, such as SEPA for the euro area, where the ECB is the intermediary. The important thing to emphasize here is that there is an intermediary in transfers and this implies slowness and fees.

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Ondulação or RippleNet appears as an alternative for this to represent a relationship between banks globally . Currently, the Ripple network has more than 100 banks (SWIFT has 11,000). However, Ripple allows instant transactions, with virtually no fees in a secure manner. Contrary to popular belief, RippleNet does not need a crypto currency to operate, and can operate directly with fiduciary money.

Therefore, XRP, Ripple’s crypto currency, is not essential to the use of RippleNet. However, it may be necessary in some cases, as we will see. It should be noted that the currency is not minable, the company “created” 100,000 million tokens saved 20,000 million of these (XRP). When it is not working with the Pow (working proof), as the Bitcoin has no intrinsic value, besides not being minable and being subordinated to a central authority, the XRP approaches the land of the fiduciary currency .

History of Ripple

The Ripple story begins in 2004, with an idea of a certain Ryan Fugger, in 2005 the first version is created. In 2011, Jed McCaleb begins to develop XRP , a cryptomoeda that bases its value on “consensus” instead of PoW (proof of work). In 2013, Ripple launched its iPhone app and, for 2014, Ripple became the second largest cryptomoeda, the German bank Fidor accepts the Ripple protocol and its price increases by 200% . By 2015, several banks, such as Santander , UniCredit , UBS , Royal Bank of Canada and others, have accepted the Ripple protocol. 2016 Ripple license to operate in New York and the following XRP year capitalization reaches 10 billion.

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Between 2017 and 2018 the XRP was revalued up to 36,000%.

What does Ripple bring?

When a national interbank transfer is made, two things can happen, either that the banks have an established relationship to make them or that they have not established and an intermediary, usually the central bank, must intervene. In the international case, the subject is complicated. To make an international transfer, the main system is SWIFT (Society for Worldwide Interbank Financial Telecommunication) in which a branch acts as an intermediary and manages the exchange and transfer of currency, this takes time and costs money . There are also other schemes, such as SEPA for the euro area, where the ECB is the intermediary. The important thing to emphasize here is that there is an intermediary in transfers and this implies slowness and fees.

Ondulação or RippleNet appears as an alternative for this to represent a relationship between banks globally . Currently, the Ripple network has more than 100 banks (SWIFT has 11,000). However, Ripple allows instant transactions, with virtually no fees in a secure manner. Contrary to popular belief, RippleNet does not need a crypto currency to operate, and can operate directly with fiduciary money.

Therefore, XRP, Ripple’s crypto currency, is not essential to the use of RippleNet. However, it may be necessary in some cases, as we will see. It should be noted that the currency is not minable, the company “created” 100,000 million tokens saved 20,000 million of these (XRP). When it is not working with the Pow (working proof), as the Bitcoin has no intrinsic value, besides not being minable and being subordinated to a central authority, the XRP approaches the land of the fiduciary currency .

How does Ripple work?

RippleNet has two forms of operation, FIAT-FIAT and FIAT-XPR-FIAT, called xCurrent and xRapid, respectively. It also has a programmable access interface to facilitate the use of these two protocols called xVia.

xCurrent

This solution offers secure encrypted transactions in a decentralized manner , without any intermediary bank. The xCurrent protocol does not require XRP, use the “interledger protocol” (IPL), the “decentralized general accounting” so that each participant has access to it. However, in the case of multi-currency transfers, it requires liquidity in the exchange market to function correctly.

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xRapid

This protocol uses XRP to provide liquidity. It moves funds in XRP taking advantage of their liquidity to make the exchange of currency, of course, the main barrier to the growth of xRapid is the liquidity of the XRP.

Price Evolution

Currently XRP is the third currency in capitalization after Bitcoin and Ethereum and its price has come close to $ 4 , now it is worth $ 0.45. The brutal increase in price was possibly due to the fact that the new investors, who entered when Bitcoin was at its maximum, went to other currencies thinking that the price of Bitcoin was too high to buy or any other similar question, with a total ignorance of what Ripple was . However, it is necessary to know what the Cryptomeda is destined for, if you want to bet on it.

XRP / USD

It is popular opinion that the Ripple network needed the XRP to work, which encouraged many to buy. However, as we’ve seen, XRP is not essential to the network’s operation. Moreover, we should keep in mind that it is the company that controls the emission of the tokens, according to which it will not emit more and there are 100,000 million, but who knows?

On the other hand XRP has no commissions, so a hypothetical return to the bull market is a point in favor that can take advantage of other less scalable currencies such as Bitcoin

BTC / USD

We can take advantage of your price evolution through CFD’s in XRP , which gives us the possibility to maintain short positions and leverage, in platforms that allow the trading of this product.

First of all, the details presented, we asked ourselves: Is it possible to adopt XRP as a reserve currency in the distant future, given the advance this technology represents in relation to traditional transfers? Will the price go up if this model of monetary movement is imposed internationally?