Ripple (payment protocol)

Ripple ( XRP ) is the native crypto currency of payment and currency trading network Ripple.

The money supply is limited to 100 billion XRP. The creator of Ripple transferred 80 billion to the XRP -profit society Ripple Labs. Ripple Labs intends, in turn, distribute 55 billion XRP to the users of the ripple network. With a market capitalization of currently nearly 5 billion U.S. dollars (as of December 5, 2013 ) Ripple is behind Bitcoin (approx. 11.5 billion ) in second place among all crypto currencies.

Network functions

(Also called XRP or Ripples ) Ripple acts as its own virtual currency payment network. Users of the ripple network are not obligated to use Ripples as a store of value or a medium of exchange. The network accepts in principle any currency. Ripples act simply expressed as " bridge currency" between all other tradable currencies, such as euros and U.S. dollars.

Distribution

The currency XRP is distributed gradually from Ripple Labs among the users of the ripple network and can be purchased through trading platforms such as Bitstamp. In contrast to other crypto - currencies like Bitcoin Ripples are thus not generated by mining. A total of 100 billion XRP are provided in the Ripple network, of which 55 billion XRP be issued. To use the ripple network, creating a ripple Wallet is first necessary. In contrast to Bitcoin Ripples are managed exclusively in an online wallet. Although this is a direct dependency on the operator Ripple Labs, but the security of the wallet is no longer to ensure solely by the user. Even if this has not happened, it is generally possible, however others also provide desktop, client for the network.

Besides the possibility to acquire XRP on online trading courses, Ripple Labs also offers the possibility to obtain XRP social commitment. For this purpose a registration with the World Community Grid ( WCG) is required. There you can computing power for research projects, such as in AIDS or cancer research, provide. In return XRP obtained daily from Ripple Labs directly into their own "Ripple Wallet". Meanwhile, the team of Ripple Labs makes by far the largest daily contribution of processing power to the " World Community Grid".

Criticism

The ripple - payment network makes it possible to transfer different currencies through the Internet via Ripple gateways. This works globally, quickly and at low cost. A company is that with Ripple Labs behind the network is viewed critically both positive and negative.