The following article is an excerpt from a scientific treatise by our guest author and takes a close look at the Ripple ecosystem.
Ripple is still one of the most valuable crypto currencies in the Bitcoin evolution
Now that the hype surrounding this digital currency has subsided somewhat and the Bitcoin evolution price downturn at the beginning of 2018 has grounded the one-way street thinking of some private investors, it is worth taking a closer look behind the scenes of this currency – especially now that the first investors in the US have filed a lawsuit against Ripple Labs. Read about it here: https://www.onlinebetrug.net/en/bitcoin-evolution/
The crypto currency, abbreviated XRP, has been public since 2012. Due to the price explosions in 2017, Forbes Magazine suddenly ranked Ripple founder Chris Larsen among the 400 richest people in the world. On paper he had assets of 58.4 billion US dollars at the end of 2017. That made him richer than Larry Ellison, the founder of Oracle, and richer than Google founders Larry Page and Sergey Brin.
Already in 2005, Ryan Fugger had put ripplepay.com online. Fugger had the idea of creating a decentralized money system that would allow people to transfer money between themselves over the Internet.
But unlike Bitcoin or Ethereum, Ripple is different: it is primarily commercial
Together with Chris Larsen and Jed McCaleb, who developed the file sharing service eDonkey and later supplied the code for Mt.Gox, they developed the digital currency Ripple based on blockchain technology. As early as 2011, they realized that Bitcoin was slow and consuming a lot of energy. Ripple’s design goal was primarily speed.
In 2012, there were disputes within the Ripple community, and McCaleb, Larsen and Fugger founded OpenCoin Inc.
OpenCoin developed a new process for payment processing from 2012. Based on Ryan Fugger’s concept, it was called the Ripple Transaction Protocol (RTXP). Its function was to transfer money between two parties.
What is XRP actually used for?
While international money transfers between banks took high fees and days, RTXP was supposed to allow transfers in seconds. At the same time, any currency (USD, Euro, Renminbis, Gold and even airline miles) should be exchangeable via RTXP. OpenCoin also developed its own digital currency called Ripple, which is now known as XRP.
OpenCoin sought investors and found them in Andreessen Horowitz and Google Ventures. In September 2013, OpenCoin Inc. was renamed Ripple Labs. The technology behind it has been made available to everyone as open source by posting the source code and documentation on the Internet. McCaleb left the company in 2013 and founded a new one. Since 2014, Ripple Labs has succeeded in attracting more and more banks as potential customers to make international payments using Ripple Labs technology.
Most of these customers are experimenting with this technology in 2018. But especially in Asia, banks are already using Ripple Labs technology. In Japan, 61 banks have joined the Ripple Labs network. And it is precisely here that a distinction must be made between the crypto currency Ripple (XRP) and the company Ripple Labs:
Most people associate the hype about the currency with the success of the company, although you have to look at both separately. Obviously the enterprise Ripple Labs gives itself little trouble to emphasize this separation in a fog from marketing, Hype and little publicly accessible documentation.