Ripple (cryptocurrency), usually denoted as XRP, is tagged as the fastest, most saleable digital asset that enables seamless online payments anywhere in the world. Recently, Ripple has been sharing global recognition stage with Bitcoin making it one of the top most promising cryptocurrencies in the market.
THE RIPPLE EFFECT
Ripple, the fastest growing cryptocurrency is designed to base around a shared, public database which uses a consensus process to allow for exchange, remittance and payments in an evenly distributed process. Known to be a Real-time gross settlement, remittance and a currency exchange network, the cryptocurrency is built upon an open source internet protocol. Ripple was released in 2012 in order to enable a “secure, instantly and nearly free global seamless financial transactions without any chargeback.”
The cryptocurrency, Ripple, had a predecessor called Ripplepay which was developed in 2004 by Ryan Fugger. Fugger received the idea after working on a local exchange trading system in Vancouver. Ripplepay went live in 2005 as a financial service that allows secure payment options to members of an online community through a secured global network. The success of Ryan Fugger led to the birth of a new system championed by Jed McCaleb of eDonkey Network. Jed and his team made up of Arthur Britto and David Schwartz built a digital currency system in which transactions were verified by consensus among members of the network.
THE DIFFERENCE OF RIPPLE SYSTEM
The improved Ripple system has been designed to serve as a better substitute for Bitcoin’s reliance on a rather centralized exchange. The Ripple system is built to use less electricity than bitcoin and perform a series of seamless online transactions far quicker than bitcoin. In 2012, Ryan Fugger teamed with McCaleb and Larsen on a digital currency idea which gave birth to the OpenCoin Corporation. In a relationship that seemed like a threat to Western Union, Ripple and ZipZap partnered in October 2013.
THE RIPPLE MARKET
The first bank Ripple used was Fidor Bank in Munich, which announced the association in early 2014. Fidor is a unique online bank based in Germany. In September, New Jersey-based Cross River Bank and Kansas-based CBW Bank announced that they would use the Ripple protocol. In December, Ripple Labs began working with the global payment service Earthport, which combined Ripple software with Earthport’s payment system. Earthport’s customers include banks such as Bank of America and HSBC which operates in 65 countries. The association marked the first use of the ripple protocol network. It was not until December 2014 that the market value of XRP rose more than 200%, helping Ripple outperform litecoin to become the second biggest cryptocurrency, and the Ripple’s market capitalization rose to about $500 million. On December 29, 2017, XRP briefly became the second largest cryptocurrency with a market capitalization of $73billion.
In 2014, Ripple Labs participated in several development projects related to protocols and launched, for example, an iPhone iOS client application that allows iPhone users to send money and receive their phone. This ripple client application no longer exists. In July 2014, Ripple Labs suggested Codius to develop a new “non-programming language” intelligent contracting system.