Ripple is a currency exchange system and remittance network created by a company called ripple. It’s also known as ripple transaction. So therefore it was built towards an open source internet protocol.
In 2012 ripple was launched. Its purpose was to create a safe and instantly free global financial transactions with no charges what so ever. It supports internet tokens like crypto currency, commodity or any other unit of value.
The network can operate without the company. Which allows users a consensus process that allows for payment and exchanges within a distributed process. Big companies such as banks and other payment networks use it as a means for paying it customers. A web developer called Fugger developed the ripple payment protocol in Columbia. He came up with this idea after working on a local exchange trading system. He aimed towards developing a monetary system that is decentralized in such a way that could allow individuals and communities to create their own money.
Open coin began the development based on fogger’s concepts. This protocol enables the instant and direct transfer money between two parties. The company created its own form of digital currency in a way similar to bitcoin. With ripple pay retail customers, corporation and other banks can make cross border payments. An online bank known as fidor in Germany, was the first bank to use ripple before banks like jersey based cross river bank and Kansas based bank announced they would be using the ripple protocol also. In December 2014 it surpasses litecoin to become the second biggest crypto currency in the world.
It became the fourth company to obtain currency license in the new york state department financial service. Users make payments with each other by the use of cryptographically signed transaction in either flat currencies or ripple internal currency.
Exciting features of Ripple
- Gateway: any person or organization that allows users to deposit money or withdraw money from ripple. It accepts currency deposits from users and issues balances into ripple ledger.
- Trust lines: ripple create trust with a good network so that users can be comfortable and extend trust to the ripple gateway that holds there deposit.
- Creditworthiness: the value of currency varies depending on the gateways creditworthiness
- Ledger: it relies on a common ledger with a distributed database were information’s about ripple accounts is kept. It protocol is a freeware servers could belong to anyone including banks.
- Users or businesses can conduct cross currency transactions within seconds. Payment can only be authorized by the account holder.
- Bitcoin Bridge creates a link between ripple and bitcoin ecosystem and it makes it possible to pay a bitcoin user direct from a ripple account without even having to hold any of the digital currency.
- Its privacy is very unique. Transactions information’s on the ledger is made public but the payment information is not. This makes it difficult for anyone to get your transaction information.