Ripple (XRP, Ripple) – real-time gross settlement system (RTGS), currency exchange and money transfer network. Another name is the Ripple Transaction Protocol (RTXP) or the Ripple Protocol. Built on a distributed open Internet protocol, consensus registry, and proprietary currency called XRP.
In 2004, Canadian programmer Ryan Fagger founded the company Ripplepay. It was a payment system based on a trusted peer-to-peer network of financial ties. Its architecture resembled the current Lightning Network. Fagger launched the first version in 2005.
In 2011, amid the development of bitcoin, the creators of Ripple decided to decentralize the network, but at the same time choose a different path путь without mining. Transactions are confirmed by consensus of the network participants and are faster than in the Bitcoin network. Then Chris Larsen joins the team, who still holds the post on the board of directors at Ripple Labs.
In 2012, OpenCoin Corporation was founded, which was engaged in the development of cryptocurrency and the improvement of payment functionality, led by Larsen and Jed McCaleb.
In January 2013, the company issued its XRP token. The coin could be transferred directly from user to user without gateways, counterparty risk.
At the time of the creation of the cryptocurrency, 100 billion XRP coins were issued, each of them is divided into a million parts, which are called drops, and for stability in the market, 65% of all Ripple coins were left to themselves (the coins are from Ripple and from partner banks).
For each transaction, 0.00001 XRP is debited, this is not a commission, but a measure of countering spam by these very transactions. Commissions subsequently burn out, deflation occurs and the coin rises in price. If a transaction attack is launched, the system will increase the size of the “commission” until it becomes unprofitable for the attacker.
In April, the company received an investment of $ 1.5 million from Google Ventures, Andreessen Horowitz, IDG Capital Partners, FF Angel, Lightspeed Venture Partners, Bitcoin Opportunity Fund and Vast Ventures.
In 2013, the company was renamed Ripple Labs. Ryan Fagger completely handed over the reins to Chris Larsen, who changed the company’s strategy: he sent her to work with banks. I must say that the strategy worked pretty quickly, since a year later the Munich bank Fidor began working with the company. This event increased the rate and overall capitalization of cryptocurrency.
At the end of the year, Jed McCaleb leaves the company. His departure is due to a divergence of opinion with Larsen on issues of strategy. After leaving Ripple, McCaleb created his own Stellar company, largely based on the original principles of Ripple.
With the increase in the number of partners, the value of the coin and its capitalization increased, and in early 2014, it briefly bypassed Litecoin. In August 2014, the “balance freeze” function was integrated, which allowed Ripple gateways to block and confiscate funds if necessary.
The beginning of 2015 was a success for the company: Western Union announced a partnership with Ripple. In May, the Commonwealth Bank of Australia agreed to cooperate in the field of interbank transfers. However, in the same month, FinCEN fined Ripple Labs for violating the Bank Secrecy Act ー Ripple sold XRP without authorization. After this incident, the company took some measures (registration with FinCEN, mandatory user authentication, passing an external audit, providing data on the regulation of Ripple funds).
In October, the company reduced its name to Ripple.
On June 13, 2016, Ripple received a BitLicense from the New York State Financial Services Division.
In September 2016, SBI Holdings brokerage acquired a 10.5% stake in Ripple. Ripple’s partnership with SBI Holdings has attracted Asian users and investors.
In 2017, the company opened offices in Mumbai and Singapore.
In February 2017, cooperation was signed with the largest bank in the United Arab Emirates – the National Bank of Abu Dhabi.
At the beginning of 2018, against the backdrop of the rise of other cryptocurrencies, the price of Ripple rose and reached its historical maximum – $ 3.75 per 1 coin, followed by a downward trend. And two years later, in December 2019, the coin reached its lowest mark of a downtrend and amounted to only $ 0.18.
June 13, 2018 Ripple changed the logo.
On September 21, 2018, Ripple circumvented Ethereum’s capitalization.
At the end of 2018, the National Bank of Kuwait began using the Ripple blockchain.
The company continues to sign new partnership agreements, and giants such as Skype, Mercury FX and others are considering integrating into their systems.
Bitcoin and other cryptocurrencies were created as an alternative to traditional money, while Ripple positions itself as a new type of settlements between banks, at the same time XRP can be used for settlements between individuals (using exchanges).
The advantage of Ripple is that this technology uses less electricity than bitcoin and operations are much faster.
Comparison of transaction confirmation times:
- Ripple – 4 seconds;
- Ethereum – more than 2 minutes;
- Bitcoin – more than 1 hour.
Ripple cryptocurrencies – рositive and negative points:
- Transactional security;
- High speed operations;
- Small commissions.
- No anonymity;
- No smart contracts;
- No mining;
- It is possible to freeze your account.
Today, Ripple’s partners are:
Accenture, Akbank,ATB Financial, Axis Bank, Banco Bilbao Vizcaya Argentaria (BBVA), BMO Financial Group, Cambridge Global Payments, Canadian Imperial Bank of Commerce (CIBC), CBW Bank, CGI Group, Cross River Bank, Davis + Henderson (D+H), Deloitte, Earthport, Expertus, eZforex, Fidor Bank, Mitsubishi UFJ Financial Group (MUFG), Mizuho Financial Group (MHFG), National Australia Bank (NAB), National Bank of Abu Dhabi (NBAD), ReiseBank, Santander, SBI Holdings, SBI Remit, Shanghai Huarui Bank, Siam Commercial Bank, Skandinaviska Enskilda Banken AB (SEB), Standard Chartered, Star One Credit Union, Tas Group, Temenos Group, UBS, UniCredit Group, Volante Technologies, Yantra Financial Technologies, Yes Bank, Aeon Bank, Aomori Bank, Ashikaga Bank, Australia and New Zealand Banking Group (ANZ), Awa Bank, Bank of England, Bank of the Ryukyus, Bank of Yokohama, Chiba Bank, Chugoku Bank, Commonwealth Bank of Australia, Daiwa Next Bank, DBS Group Holdings, Fukui Bank, Gunma Bank, Hachijuni Bank, Hiroshima Bank, Hokuriku Bank, Hyakugo Bank, Iyo Bank, Juroku Bank, Keiyo Bank, Michinoku Bank, Mizuho Financial Group, Musashino Bank, Nishi-Nippon City Bank, North Pacific Bank, Oita Bank, Orix Bank Corporation, Resona Bank, Royal Bank of Canada, Royal Bank of Scotland, San-in Godo Bank, SAP, SBI Sumishin Net Bank, Senshu Ikeda Bank, Seven Bank, Shimizu Bank, Shinkin Central Bank, Shinsei Bank, Sikoku Bank, Sony Bank, Sumitomo Mitsui Trust Bank, Suruga Bank, The 77 Bank, The Daishi Bank, The Nomura Trust & Banking Co., Tochigi Bank, Toho Bank, Tokyo Star Bank, Tsukuba Bank, Western Union, Westpac Banking Corp, Yachiyo Bank, Yamagata Bank,Yamaguchi Bank.