Ripple what is it?

Difference Between Ripple and Bitcoin

Ripple what is it? Formerly known as OpenCoin, Ripple is a privately held company that is building a payment and exchange network (RippleNet) based on a distributed ledger database.

Ripple's primary goal is to connect banks, payment providers and digital asset brokers, enabling faster and more cost-effective global payments.

Ripple what it is: History

Ripple was first conceived in 2004 by Ryan Fugger, who developed the first prototype as a decentralized digital currency system (RipplePay). The system was launched in 2005 and aimed to provide secure payment solutions within a global network.

In 2012, Fugger handed the project over to Jed McCaleb and Chris Larsen, who together founded the US-based technology company OpenCoin.

From there, Ripple (XRP) began to be built as a protocol focused on payment solutions for banks and other financial institutions. In 2013, OpenCoin was renamed to Ripple Labs, which was later renamed to Ripple in 2015.

Ripple what is it?

Ripple: XRP Ledger (XRPL)

Based on Fugger's work and inspired by the creation of Bitcoin, Ripple implemented the Ripple Consensus Ledger (RCL) in 2012 — along with its standard cryptographic currency, XRP. Soon after, the RCL was renamed to XRP Ledger (XRPL).

XRPL works as a distributed economic system that not only stores all the accounting information of network participants, but also provides exchange services in various currency pairs.

Ripple introduces XRPL as a distributed, open source ledger that enables real-time financial transactions. These transactions are guaranteed and verified by the network participants through a consensus mechanism.

Unlike Bitcoin, however, the XRP Ledger does not rely on a Proof of Work (PoW) consensus algorithm, so it does not rely on a mining process to verify transactions.

Instead, the network achieves consensus through the use of its own custom consensus algorithm — formerly known as the Ripple Protocol Consensus Algorithm (RPCA).

XRPL is managed by a network of independent validation nodes (nodes) that constantly compare their transaction logs.

Anyone can not only configure and run a Ripple node, but also choose which other nodes (nodes) will be part of their communication network.

However, Ripple recommends that its customers use a list of trusted and identified participants to validate their transactions. This list is known as the UNL (Unique List of Nodes).

UNL members exchange transaction data with each other until they all agree on the current status of the Ledger.

In other words, transactions that are agreed upon by an absolute majority of UNL nodes are considered valid and consensus is reached when all these nodes (nodes) apply the same set of transactions in Ledger.

According to Ripple's official website, Ripple is a privately held company that sponsored the development of XRPL as an Open Source Distributed Ledger. This means that anyone can contribute code and that XRPL can continue even if the company ceases to exist.




Unlike XRPL, RippleNet is unique to the Ripple company and was built on XRPL as an exchange and payment network.

RippleNet currently offers a suite of 3 products designed as a payment solution system for banks and other financial institutions. RippleNet currently has three main products: xRapid, xCurrent, and xVia.

Ripple: xRapid

Simply put, xRapid is an on-demand liquidity solution that uses XRP as a global bridge between various fiat coins. Both XRP and xRapid rely on the XRP Ledger, which allows for faster commit times and much lower rates when compared to conventional methods.

Let's use a simple example. João from Australia wants to send $100 to Maria, who is in India. João transfers the money through a financial institution called FIN.

In order to carry out this transaction, FIN uses the xRapid solution to create a connection with asset brokers in the country of origin and destination. In this way, the company is able to convert João's $100 into XRP, which provides the necessary liquidity for the final payment.

In a matter of seconds the XRP is converted into Indian Rupees and Maria is able to withdraw the money from the brokerage located in India.

Ripple: xCurrent

xCurrent is a solution designed to provide instant transactions and international payment tracking between RippleNet members.

Unlike xRapid, the xCurrent solution is not based on XRP Ledger and does not use XRP cryptocurrency by default. xCurrent is built around the Interledger Protocol (ILP), designed by Ripple as a protocol for connecting different ledgers or payment networks.

Ripple: The basic components of xCurrent are:

  • Messenger — The xCurrent tool provides peer-to-peer (P2P) communication between financial institutions connected to RippleNet. It is used to exchange information about risk and compliance, exchange rates, payment details, and expected delivery time of funds.


  • Validator — The validator is used to cryptographically confirm the success or failure of a transaction and also to coordinate the movement of funds through Interledger. THE credit society (Financial Institution) they can carry their own validator or they can trust another third-party validator.


  • Ledger ILP — The Interledger Protocol is implemented in existing bank records, bringing the Ledger ILP to life. It operates as a sub-ledger and is used to locate credits, debits and liquidity between the parties involved. Funds are settled immediately, which means they can only be settled instantly, otherwise the process is not completed.


  • FX Ticker — The FX Ticker is used to set exchange rates between the parties involved. It finds the current state of each configured ILP Ledger.

Although xCurrent is primarily designed for fiat currencies, it also supports currency transactions. cryptographic coins.


xVia is a standardized API-based interface that allows banks and other financial service providers to interact in a single framework — without having to rely on multiple integrations with networks. payment.

xVia allows banks to create payments through other partners connected to RippleNet and also allows them to attach invoices or other information to their transactions.

Ripple what is it? in short

While Bitcoin is known as the first crypto currency and Ethereum is recognized for creating a platform for smart contracts, we can consider the Ripple network as an exchange system that focuses on global payment solutions for banks and other financial institutions.

RippleNet can be deployed on top of existing banking infrastructure as a way to complement and enhance the traditional payment system.

xCurrent enables cheap, real-time payments using all financial institutions, xRapid uses XRP as a borderless currency to provide pools of liquidity on demand, and xVia facilitates integration and communication for all RippleNet participants.

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