Ripple is both a cryptocurrency and an open payment network that seeks to liberate people from the financial restrictions that are common when using b
Ripple is both a cryptocurrency and an open payment network that seeks to liberate people from the financial restrictions that are common when using banking institutions, online payment channels such as PayPal and credit cards, which often charge heavy transaction fees and experience significant transaction delays. The company responsible for the Ripple protocol, OpenCoin, was co-founded by Chris Larsen (CEO) and Jed McCaleb (CTO).
Ripple aims to keep the flow of money constant and free of any charges or centralized authority controlling it. Although the cryptocurrency is independent, it aims to work together with existing cryptocurrencies like Bitcoin by providing a bridge to the mainstream financial world for Bitcoin users.
It is in fact based on Bitcoin’s decentralized money transfer system although Ripple is not owned and managed by a single company.
What Exactly Does Ripple Do?
According to their website (https://ripple.com/), Ripple aims to “do to money what the internet did to all other forms of accessing information”. In a sense, the cryptocurrency aims to build on the decentralized system Bitcoin started but to make it even more stable and inclusive of all other forms of payment.
As the chief cryptographer of ripple David Schwartz elucidates, the main aim of Ripple is to connect all types of payment systems and as a result, he anticipates that soon enough, companies will have no control over people’s money.
How Will It Complement Bitcoin Services?
For Bitcoin users, Ripple promises to make transferring payments to other forms of currency, whether digital or mainstream, not only possible but very easy. Much like Bitcoin, it offers P2P transactions with no supervisory third party involvement in the transactions and has strict security measures guarding against the use of counterfeit digital currency.
Ripple aims to inaugurate Bitcoin into the mainstream finance markets even more as its design focuses on making the transfer of forms of currency such as dollars, pounds, Euros and Yens seamless.
How Much is One Ripple Worth?
Currently, a single Ripple is valued at $0.0087, meaning that $1 is equal to 115 Ripples. The cryptocurrency has drastically appreciated given that in April, $1 was equal to roughly 1,000 Ripples. OpenCoin’s ultimate goal is to create 100 billion Ripples, half of which will be released into circulation while the other half will be retained.
Although there are no transaction fees involved when using Ripple, it does cut off a small percentage (comparable to 0.001 percent of a cent) which it destroys rather than retains. This is done as a counter-measure against people who would wish to swamp the system by conducting millions of transactions all at once.