What is ripple and how it seeks to change the way money is transferred to the best
Have you ever transferred an amount deposited in a bank from country to country and it took 3 to 5 days and sometimes it takes longer, and I felt that if you take the money yourself for less time, on this subject we will talk about xrp and how you seek to change the way money is transferred in the world.
In 2011 XRP was developed by 3 engineers (Arthur Brito, David Schwartz and Jed McCaleb), Arthur does not have an online image and according to his colleagues he does not like the lights and prefers to separate his private life from his career.
- What's XRP LEDGER:
The blockchain on which the XRP currency was built, its first name was Ripple to change to its current name, and in June 2012 the development of this blockchain was completed and launched as the three engineers set up a company they called opencoin and then changed its name to RIPPLE LABS, the aim of which is that this company uses Technology XRP to provide solutions in the banking sector and facilitate the process of transferring money.
- The difference between RIPPLE LABS and XRP LEDGER:
XRP LEDGER is a blockchain that operates the XRP currency, but RIPPLE LABS is a private for-profit company with many projects, including XRP LEDGER.
- What problem is ripple LABS solving:
The transfer of the bank is expensive and takes a long time because the use of old 40-year-old technology such as Swift, in all remittances we find the word Swift code, which is the network used by banks to send money, a central banking service run by swift organisation, banks need this type of network, not all banks have direct contact with each other, let's say that Bank A wants to send a financial tobacco to B Bank, which is another country, so that the transfer reaches the bank B you have to go through several correspondent banks and that's why international transfers take a long time because every bank that passes through the transfer takes time and slow To send it as well as take a fee for that service, for example to receive a transfer from Japan and we in the UAE the first thing must be converted from yen to dollar because in Japan they do not have dirhams and do not have a request and vice versa, but banks in both countries deal in dollars and for this amount converts from yen to dollar and sent to the Bank of the United Arab Emirates and converts from dollar to dirham, you imagine how much currency transfer fees will be expensive especially that banks use a high transfer If RIPPLE LABS developers want to change the infrastructure and the way banks transfer money, they want to transfer money as quickly as information at the click of a button, and this can be done using blockchain XRP, called internet of value, a distributed account book that uses blockchain technology and design. In order to have a global payment system that allows users to send money internationally in a fast and inexpensive way, RIPPLE LABS has provided this solution to banks and financial institutions through RIPPLE NET, which uses XRP to pay transaction fees, the solution in RIPPLE NET is that it gives the user the option to use XRP or other digital currency as well as includes banknotes.
- What are the advantages of XRP coin blockchain:
- Blockchain is a safe XRP currency because no one can cancel or stop the transaction.
- Transaction fees are very low, and treatment within Blockchain XRP costs $0.00001
- Speed in transactions, each conversion within blockchain XRP takes 3 to 5 seconds to perform unlike the bank which takes 3 to 5 days.
- blockchain XRP finishes 1500 transactions in just one second it is considered faster than non-blockchain , we give an example of bitcoin bolchin it performs 7 transactions within a second, blockchain ethereum performs 20 transactions per second, here we note the vast difference between the xrp coin blockchain with others
This is possible through a special compatibility mechanism followed by the developers of the XRP coin blockchain, which is called the ripple protocol consensus algorithm and does not resemble proof of work or proof of stake used by Bitcoin, Ethereum and cardano.
Proof of work or Proof of stake is a bonus from blockchain either for mining or storage, the XRP compatibility mechanism is a vote on the transaction either valid or wrong and requires 80% of the votes to be executed, if computers connected to Blockchain XRP who check transactions do not take XRP currency as equivalent and most of these competers are affiliated with banks.
- Banks and companies that have worked with Ripple or tried their services:
Several companies have worked remittances and rebel banks, including:
- american express
- western union
- BeeTech (Brazil)
- Zip Remit (Canada)
- LianLian (China)
- RAKBANK (U.A.E.)
- Kotak Mahindra Bank (India)
- Itaú Unibanco (Brazil)
- Airwallex (Australia)
- Krungsri (Thailand)
- Santander (USA)
- InstaReM (Singapore)
- Itaú Unibanco (Brazil)
- Canadian Imperial Bank of Commerce (Canada)
- IFX (U.K.)
- TransferGo (U.K.)
- SEB (Sweden)
- Currencies Direct (U.K.)
- Siam Commercial Bank (Thailand)
- SBI Remit (Japan)
There are many other companies that have worked with Ripple that we can't mention all but these companies are the most prominent
- XRP Tonomics:
- MARKET RANKING : #7
- MARKET Dominance : 2.52%
- MARKET cap 40 B dollars
- Cir. Supply: 48.34 B
- Max supply: 100 B
- Limited Supply: YES
According to the protocol, 100 billion XRP Coin will be produced divided as follows:
- Disagreement between xrp coin developers:
Currently, 46.6 billion XRP coin are traded on the market and it is remarkable that 64.83% of these coin are found in only 100 portfolios, which means that most xrp currency is in the hands of minorities and this constitutes Danger to investors, the biggest proof of this is the abandonment of Jack McKeld RIPPLE LABS due to a dispute with his colleagues in 2014, where LABS decided to make an agreement with him so as not to sink the market by 9.5 billion xrp and collapse its price, this agreement is a phrase For the 07-year-old xrp sold a month, Jack McEld sold in 2020 an xrp coin worth $400 million.
The richest characters of the crypto, estimated his wealth at $2 billion, and he left the project xrp founded stellar blockchain.
- Legal problems with xrp currency:
Let's talk about the legal problems between RIPPLE LABS and sec, the first thing xrp started was a digital currency like Bitcoin and Ethereum, but in December 2020 sec sued RIPPLE, they thought it wasn't a digital currency, it was a security because they were preparing it, and the way information was distributed to blockchain was not 100% decentralized and most xrp in ripple hands, this case still hasn't been solved and has had a clear impact on xrp, which was ranked third among coin and currently ranked third among coins. Ranked seventh, ripple reached $3.84 in 2018, the highest value ever climbed, RIPPLE LABS is a company seeking to develop the financial sector through its blockchain.
- RIPPLE LABS Vulnerabilities:
Its main weaknesses are its judicial problems, its case with sec and this is a cause for concern and does not make society afraid of its projects, the second problem is the small number of portfolios that control the currency as mentioned earlier there are only 100 portfolios with approximately 64.83% of the total currency xrp
- RIPPLE LABS Strengths:
One of the highlights of the xrp project is the contracting of the world's largest companies and banks.
The power of xrp doesn't fight the banking sector, it offers innovative solutions, and this makes it easier to adopt.