Ripple

Ripple is a protocol for B2B transactions. It is a real-time settlement system designed to be used by banks for currency exchange, remittance and gross settlement. The system has been designed to replace the SWIFT payment system.
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Price
Basic
Announcement Date:
2012-05-02
Initial release:
2012-05-02
Hash function:
SHA512 half hash algorithm
Smart Contract Support:
No
Consensus Mechanism:
Federated Byzantine Fault Tolerance
Ripple101

What is Ripple?

Ripple is a protocol for B2B transactions. It is a real-time settlement system designed to be used by banks for currency exchange, remittance and gross settlement. The system has been designed to replace the SWIFT payment system. Banks can install the Ripple ledger and send each other transactions in any currency, not just the XRP token which is native to the protocol. Unlike Bitcoin and other coins which only store BTC transaction in their blockchain, the use of XRP is not mandatory in Ripple transactions.

How does Ripple work?

Ripple is neither a decentralized system nor a permission-less system and therefore participants need to have permission in order to join the network.

There is no mining in the Ripple system. There are 100 billion XRP minted and there will never be more than this amount, as per the protocol definition. XRP is not mineable and cannot be minted via other processes. The consensus process is distributed but not entirely decentralized. Several servers perform the verification of transactions, which would normally be done by miners. However, these servers are either controlled by or have their installation assisted by Ripple Labs. Trusted banks and other institutions form the Ripple verification network.

Ripple does not publicize information in its public blockchain. While transactions can be seen by anyone, the payer and recipient are not seen in public.

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