Ripple

The Coins

Beginner

By Matt Hussey

Learn

Jan 22, 2019

Ripple is a type of cryptocurrency designed to help banks move money more quickly, and cheaply than existing methods. It’s a centralised type of cryptocurrency that makes it different from currencies like Bitcoin.

What you will learn

What you will learn

Our guide to all things Ripple takes you through how Ripple differs from other cryptocurrencies, why it was created and why banks love it.

Ripple is called a cryptocurrency, but the way it works and runs is very different from other currencies like Bitcoin and Litecoin.

Ripple doesn’t rely on energy intensive mining in order to work or create new currency.

Instead, it created its currency all at once, and the people behind Ripple gradually sell it as and when they need to.

It's also more focused on developing a method to help banks and other financial institutions move money faster and without fees rather than a way for people to buy goods and services.

Did you know?

Some people in the Ripple community call the smallest unit of Ripple a ‘Jed’ after Jed Calab, one of the company’s founders.

Who Invented Ripple

The pre-cursor to the Ripple we know today was first developed by Ryan Fugger, a web developer in 2004.

But it wasn’t until 2012 - and the work of Jed Caleb and Chris Larsen - that lead to what we now know to be Ripple.

A brief history

  • 💳 2004 - Ryan Fugger developed Ripplepay in 2004 - a secure payment service
  • ₿ 2011 - Jed McCaleb, Arthur Britto and David Schwartz began work on a new currency system inspired by Bitcoin
  • 💱2012 - Jed McCaleb, Chris Larsen and co merge their idea with Fugger leading to the creation of OpenCoin.
  • 🏗️ 2013 - Jed leaves OpenCoin and the company changes its name to Ripple Labs
  • 🏦 2014 - The first bank starts using Ripple to transfer money
  • 💸 2017 - In December, XRP briefly became the world’s second largest cryptocurrency with a value of $73 billion

What’s so special about it?

There are two parts to Ripple: Ripple as a cryptocurrency (XRP), and Ripple as a company designed to help banks move money quickly and cheaply.

  • 🏦 It’s a service for banks - Ripple has been helping banks connect to each other via its network.
  • 💱 It bridges cryptocurrency and traditional banking - by using its own currency as a go between to exchange dollars and pounds in to cryptocurrencies.
  • 💨 It’s super fast at moving money. It only takes 3.5 seconds for money to be confirmed, and can process 1,000 transactions per second, the same amount of transactions as Visa can. Bitcoin, by comparison can process just 7 transactions per second.
  • 💸 It’s really cheap to move money - it’s a lot cheaper for banks to move money using Ripple than using existing technology.
  • ⚡It uses less power - because no mining takes place, it’s more energy efficient
  • 🎯It’s centralised - Banks act as nodes on the network, giving them more control over transactions.

Did you know?

Chris Larsen, 57-year-old co-founder of Ripple, holds the most Ripple, somewhere around 5 billion XRP.

How is Ripple produced?

Ripple doesn’t involve miners and nodes in the same way as other currencies. Instead it created 100 billion Ripples at the point of inception, and has been steadily selling them every month to help raise money.

Did you know?

Ripple currently owns more than 60% of all XRP in existence, and releases around 300 million Ripples every month.

How do you get hold of Ripple?

You can head over to an exchange and buy Ripple with dollars, pounds or euros.

What can you do with Ripple?

It’s not seen as a tool to buy goods and services like Bitcoin or Litecoin. However, there are a few places that let you buy goods using Ripple’s XRP currency.

Did you know?

15 of the 50 biggest banks use Ripple to move money around the world.

The future

Ripple wants to help the banking industry move money as quickly and simply as sending someone an email.

The company’s focus is to bring all the world’s big banks on to the platform.

The future of XRP meanwhile is less certain, but if Ripple does become the platform banks do business online it’s currency will be tied to that success.

By Matt Hussey

Learn

Jan 22, 2019

Get The Daily Debrief In Your Inbox

2019 © Decrypt Media, Inc. All Rights Reserved.

2019 © Decrypt Media, Inc. All Rights Reserved.

Get The Daily Debrief In Your Inbox