As we already know above Ripple (XRP) is a digital currency that therefore does not exist in material form, but originates from the internet. The real currency has been over since 2013 and its procedure was established by OpenCoin , which existed established by Chris and Jed. The objective of Ripple, as noted by its producers, is to abolish and survive the complications and flaws of Bitcoin, so tardy we will try to bring out all the distinctions between the two real cash Solanax liquidity launch.
The idea behind Ripple is that of the person to person monetary system, it aims to eliminate or in any case lower the intermediation costs on financial transactions (costs, for example, deriving from the intermediation of a bank or a credit).
Ripple: what the network is and how it works
Just like Bitcoin, Ripple regulates on a decentralized outlet and on a free source web , which implies that creators have the liberty to constantly intervene and difference as compelled by the constitution on the use of real currency. In fact we know once again how the words Ripple observes both the cryptocurrency and the whole web in which it governs.
A characteristic of the Ripple network that cannot be traced instead in Bitcoin is the existence of marketing lists called Ledger , which authorize you to regulate trades and detailed agreements within a few moments. Another standard component of the Ripple system is the chance of changing and transferring without continuing of aspect : I can fluctuate dollars to a recipient who will rather obtain euros.
The Ripple network consists of 3 parts :
A payments network, a stock exchange and the same currency (XRP) that we have talked about so far, but how does all this work? We can consider Ripple and its network as a more modern version of the current system of financial intermediaries, as much of its operation is based on trust, but let’s go in order and try to shed some light with an example, “B and C choose to go on a trip each bringing a friend. B leads A and C leads D. A knows only B, while D knows only C. Now imagine that A and D, hitherto unknown, go for a coffee, but D does not have the money to pay for it. Subject A will pay for both, and D will propose to pay it back via Ripple. In this way, D will go into debt with C (his friend who will therefore know he will see the money again), who in turn will go into debt with B (the mechanism is always the same). Finally, B will return the coffee money to his friend A. “