First, Ripple (XRP) has several fundamental differences from the classical cryptocurrency, so it is focused on simplifying operations with the exchange of monetary units. Ripple is hosted on a public database, using a matching procedure like Blockchain technology. The official launch of the platform took place in 2012, although before that there was already a money transfer service via the Internet under the Ripplepay brand. The developers of Ripple emphasized the decentralization of the network and the improvement of the security of cash payments due to distributed registries.
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Immediately after its release, Ripple received positive reviews from the foreign exchange market experts, which allowed this monetary unit to increase its capitalization and become one level with Bitcoin and Ethereum. Today, the Ripple system is used by American Express to make cash payments between customers from the US and the UK.
Public source code Ripple allowed many financial institutions to create the infrastructure necessary to perform currency transactions. The new technology process makes it possible to integrate the Ripple algorithm into banking data processing systems. At this stage in the development of electronic payments involving Ripple, two responsible participants are required to confirm the transactions and liquidity of the transferred asset. In the beginning of its development, payments through the Ripple system allowed to conduct transactions exclusively on trusting relationships, but over time additional opportunities appeared to adjust the balance of payments.
The Ripple platform implements the idea of a so-called gateway, which acts as a deposit mechanism and can accept cash or redeem balances from the existing registry. In practice, all this is very similar to banking operations, which use the Ripple protocol as a faster and safer payment mechanism.
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As we have already mentioned, Ripple is a decentralized registry that is managed by sovereign servers. But do not forget that the servers of large Data-centers can belong to banks and their satellites. Confirmation of transactions in the Ripple network occurs very quickly and this is the main feature of this cryptocurrency. At the same time, intercurrency exchangecan last several minutes, while transactions are always safe and reliable. Platform users do without intermediaries, and Ripple instantly identifies accounts, making payments as correct as possible.
Unlike many cryptocurrencies that have appeared recently, Ripple remains one of the most powerful competitors to all the famous Bitcoin. Even despite certain difficulties that arose with the cryptocurrency in the first quarter of 2018, Ripple managed to hold the third position in the world rating by the level of capitalization, thereby confirming the prospects of his algorithm for working in the financial market.
Editor: Yuliya Soroka