What is the Ripple?
The ripple is a real-time gross settlement system, also called "RTGS", a foreign exchange market and a remittance network. A real-time gross settlement system is one in which settlement instructions for the transfer of funds or securities take place individually, that is, instruction per instruction. In addition, it is a settlement system that intervenes in real time. It is a system that was launched in 2012 and supports any monetary system, including currency (coins and banknotes) and cryptographic currency. It is a decentralized network whose operation can be assured without any influence of Ripple, the company that founded this system, and it can not be closed.
Unlike other known cryptocurrencies, the process does not only take into account its own currency but also allows the use of any currency, fiduciary or virtual. Long remained in the shadow of Bitcoin, Ripple however became in 2017 the most successful virtual currency of the year.
The Ripple concept
In Ripple 's own words, its open source protocol is a "basic infrastructure technology for interbank transactions". For these international transfers, Ripple uses a pivot currency, the ripple, which is his own cryptographic currency.
The principle of these international transfers is relatively simple. Take the example of a transfer from France to the United Kingdom. The money is sent from the issuer's account to the account of an intermediary, also located in France. This intermediary sends the equivalent of this sum to the account of another intermediary on the other hand. Thus, the issuer will only pay the rate for a local transfer, since the money crosses the border in the form of ripples.
Making an international transfer with Ripple: what are the advantages?
Making international transfers with Ripple has several advantages:
- as we have already seen, the amounts transferred cross the border in the form of ripples, which means that you will only pay the sums relating to a local transfer. It is therefore a very economical solution for all your international transfers;
- the processing times are much shorter than for a bank transfer. Indeed, an international transfer will generally take several days if it is done by a bank whereas it is instantly concretized using Ripple;
- transfers in a currency other than his own are also facilitated. In fact, by using Ripple, the recipient will receive the converted transfer in the currency of his bank account.
The Ripple, a hybrid currency
Independent servers
This is where the difference between the Ripple and other cryptographic currencies lies: they are independent servers that ensure the security of transactions. These servers may belong to anyone and some banks may hold. This makes this cryptocurrency incomparable with its competitors.
The validation system
The validation of each transaction is done by consensus. It is a voting system between independent validators who constantly compare their transaction records.
The Ripple: practical information
The XRP currency is divisible up to 6 decimal places, the smallest unit being called a "drop" (1 million drops = 1 XRP). All XRP are "pre-mined", which means that there is no longer the possibility to create new chips. XRP 100 billion was created at the launch of Ripple.
What you must remember
Ripple is a service that makes international transfers faster and cheaper than through a bank.
Before you cross the border, the money is converted into ripples, the cryptocurrency of Ripple, so that you will only pay the costs of a local transfer.
By using Ripple, you can make transfers in a currency other than your bank account.
No comments:
Post a Comment