What is Ripple and XRP cryptocurrency?
What is Ripple and XRP cryptocurrency?
Ripple was founded by American programmers Jed McCaleb and Arthur Britto, as well as Cryptographer David Schwartz. The author of the basic concept is the Canadian programmer Ryan Fugger. Having familiarized himself with the work of the Vancouver branch of the local exchange trading system in 2004, Fugger became interested in the idea of creating a decentralized payment system. In 2005, he launched the first iteration of such a system called Ripplepay.COM, which has not been widely used.
In 2011, Fugger transferred one of the main management posts in his company Jed McCalebu. He invited David Schwartz to the project and hired an Arthur Britto Development Manager.
In 2012, McCaleb created Opencoin, American entrepreneur Chris Larsen became its general director, while Fugger left the project. In 2013, Opencoin changed its name to Ripple Labs. Currently, the general director of the company is Brad Garlinghaus, who replaced Chris Larsen in this position.
McCaleb left Ripple Labs in 2014 and founded his own project – Stellar. By agreement with the team, he received 9 billion XRP – 18.6% of the total issue of the coin. Funds were paid in units over the next eight years: McCaleb made the last sale deal in July 2022.
How the XRP Ledger blockchain works?
The Ripple ecosystem operates on the XRP Ledger (XRPL) decentralized network. Among its advantages, the high speed is called (the average production time of the block is 3-4 seconds) and low commissions for transfers.
According to the official site, XRP Ledger is suitable for microtransactions in applications, NFT and deployment of Defi protocols, as well as for the release of stablecoins and CBDC. In addition, in XRPL you can tocenize “traditional” assets, such as securities or fiat money.
The main developer of XRP Ledger is the non -profit organization XRPL Foundation, founded in the fall https://gagarin.news/news/goldman-sachs-the-popularity-of-cryptocurrencies-in-the-insurance-market-is-growing/ of 2020. Among large blockchain users, the Bitpay processing service, Bitgo Castodiana and the platform for creating the Forte blockchain-game are called.
The network uses its own consensus algorithm called XRP Ledger Consensus Protocol.
XRP Ledger operates on the basis of GCD, controlled by validators. As of August 16, 2022, more than 130 validators are active on the network, of which 35 are in the so -called Unique Nodes List. This group is responsible for activating the changes that are added to the protocol. The current state of the network can be viewed on the XRPSCAN website.
What is XRP cryptocurrency?
XRP – native Ripple Coin. 1 XRP is divided into a million units called drops (Drop). The issue of the coin is 100 billion, all of them were released at the launch of the network: 65% of all XRP received Ripple Labs at the escrow account, 35% entered the free circulation.
XRP cryptocurrency can be bought at most exchanges and trading platforms. In addition to the user address, its translations also requires the so -called destination that is generated in the wallet. XRP storage and transactions support most popular multi -melting wallets for crypto assets.
XRP is used by large clients from among financial institutions for transfers through payment bridges and is a unit of calculation in the interbank communication system RipPlenet, which is developed by Ripple. Steering for XRP is not provided.
The price of XRP for individual investors is formed on exchanges during free trading. The current XRP course can be viewed on aggregators such as Coingecco or Coinmarketcap.
Ripple Labs, which has large reserves of coins, sells large volumes of XRP corporate clients. According to the report that was released in May 2022, the total sales of coins for the 1st quarter of the 2022th and 4th quarter of 2021 amounted to almost $ 1 billion. At the same time, Ripple Labs purchased XRP $ 1.4 billion.
What is RipPlenet?
The key product Ripple Labs is a global network to conduct cross -border financial transactions RipPleNet, which is used by banks, payment services and other financial organizations. RipPlenet provides users with messaging, clearing and calculations on financial transactions in real time.
RipPlenet appeared in 2019 and united the three main products of the company:
- Xcurrent – a solution for processing cross -border payments built into banking infrastructure. Increases the efficiency of traditional payment messages, while having similar security standards and meets regulatory requirements.
- On-Demand Liquidity (ODL)-a service for providing liquidity during transactions of fiat currencies. For international transfers, banks need to store various local currencies. ODL allows you to release this capital, converting the fiat in the XRP – cryptocurrency is used as a “intermediary” for payment. At first, the main currency of the bank is exchanged for XRP, and after successful processing of the transaction in another bank, he exchanges XRP already for its currency. Previously, this product was called Xrapid.
- XVIA-API interface designed specifically for the convenient use of individual components of the entire RipPlenet ecosystem. XVIA does not need installation, functioning as an expansion of the browser, and can be built into the already used.
It is ODL that can increase the demand for the XRP token from financial organizations. According to data for 2021, the annual volume of payments through ODL grew almost eight times compared to the same period of the previous year, reaching $ 15 billion. The leader in the use of the ODL service is the Asia-Pacific region.
How the Ripple ecosystem is developing?
According to information on the Ripple website.COM, Ripple Labs provides commercial services to hundreds of companies in more than 50 countries. Famous customers include Australian National Australia Bank (NAB), Canadian Canadian Imperial Bank of Commerce (CIBC), Japanese financial giant SBI Holdings and the National Bank of Egypt (NBE). As of October 2021, only 300 financial organizations consisted of Ripplenet only.
Ripple Labs is not limited to the development of solutions for cross -border payments. At the beginning of 2022, the company announced the launch of a crypto service for institutional clients called Ripple Liquidity Hub, designed for the trade and storage of bitcoin, Ethereum, XRP, Litecoin, Bitcoin Cash and Ethereum Classic.
In March 2022, Ripple Labs announced the allocation of 1 billion XRP for grants for developers, as well as the creation of a fund of $ 250 million for digital artists and developers in the field of non -deposited tokens (NFT).
SEC against Ripple Labs
A few years after the start of work, Ripple Labs began to distance from XRP. In July 2018, a message was published on the project’s website, where the coin is presented as an “independent” digital asset from Ripple. At the same time, the XRP distributed registry community conducted the logo and achieved a change in the sales ticker C Ripple (XRP) on XRP (XRP) on crypto -rhizas and services.
This initiative was picked up in the management of Ripple Labs. Technical Director David Schwartz said that the company is engaged in the development of the payment system, but is not related to the creation of XRP cryptocurrency, having received it from the founders of the project.
According to the conclusions of the Cryptobriefing portal, the Ripple Labs thus tried to avoid court persecution for trading unregistered securities, which XRP coins could fall under the definition of.
Despite the attempts of the Ripple Labs management to distance himself from the crypto acting, by August 2018, the company defended himself in a court for four group claims from investors for trading unregistered shares.
According to the lawyer and the head of the Blockchain Association policy department, Jake Chervinsky, the expectation of the end of these trials is the reason why the US Securities and Exchange Commission (Sec) did not immediately intervene in the conflict.
However, in December 2020, SEC nevertheless filed a lawsuit against Ripple Labs, claiming that the California blockchain company for seven years sold unregistered securities in the form of XRP cryptocurrency to retail investors. Ripple general director Brad Garlinghaus and co -founder Chris Larsen also act as defendants. As of mid -August 2022, the SEC trial against Ripple Labs is not completed.
