Introduction to Ripple for Bitcoiners


This pagina describes Ripple target feature set for after beta.

  • Ripple is an open source, distributed peer-to-peer payment network
  • Ripple transactions are irreversible, sent overheen the Internet, and counterfeit proof
  • Ripple uses the same underlying cryptography spil Bitcoin
  • Ripple has multi-signature support
  • Ripple has low to no transaction fees
  • Ripple servers can be run by anyone
  • Ripple can send any currency
  • Ripple can automatically exchange currencies
  • Ripple transactions are fully confirmed ter seconds
  • Ripple permits nicknames and gravatar icons for accounts
  • Ripple’s reference client is a Firefox and Chrome add on
  • Ripple has no block chain download, clients are ready te seconds
  • Ripple has no mining or rechtstreeks monetary prize for running a server
  • Ripple has no currency risk spil people can hold whatever fiat they want
  • Ripple solves the dual spending problem with overeenstemming instead of proof-of-work

Unlike Bitcoin, Ripple is not attempting to persuade people to switch currencies. Ripple is targeting people wanting to send fiat:

Transactions are free-ish. Other fiat payment systems charge a few procent plus a transaction toverfee. Ripple transactions of any amount cost less than $0.01.

  • Privately
  • Ripple provides privacy for consumers by removing the need to provide the merchant an e-mail, a name, or any other information.

  • Securely
  • Using Ripple is just like sending contant. After a transaction is overheen, the receiver can’t rack up extra charges. With credit card and check payments the payer vereiste give out private information, which can te turn lead to fraud.

  • Reliably
  • Since Ripple transactions are irreversible, merchants have the security they need to conduct business with anyone.

  • Internationally
  • Borderless payments at the best cross-currency rate make Ripple payments good for merchants and consumers.

    • Ripple’s built te exchange permits you to lightly buy and sell Bitcoin using any other currency on the Ripple network.
    • Cross-currency payments permit you to pay merchants with Bitcoin and have them receive the currency they desire.
    • Outbound Bitcoin bridges ter Ripple permit you to instantly pay ter the currency of your choice to send bitcoins to any Bitcoin address.
    • Your Ripple wallet automatically converts currencies whenever your payment destination is a Bitcoin address.

    Ripple has its own internal currency called XRP, also known spil “ripples”. XRP can be sent from any Ripple account to any other Ripple account.

    Ripples protect the network

    Ripples are used to protect the network from manhandle. Using network resources like having an account, an open opoffering, or an open trust line requires having XRP on reserve. All transaction fees are paid ter XRP which is subsequently demolished.


    The Ripple founders created the initial Ripple ledger with 100 billion XRP. The founders gifted a for profit company called Ripple Labs 80 billion XRP. Ripple Labs intends to give away overheen 50 billion XRP. The remainder will be used to fund Ripple Labs operations, which include contributing code to the open source network and promoting the network.

    Even if Ripple Labs should close, the Ripple network will proceed. Because Ripple is a P2P network, it is not operated by Ripple Labs but by the combined efforts of all computers running the Ripple server software. The Ripple network cannot be shut down without shutting down the entire Internet.

    • No mining:
    • No 51% attack vulnerability
    • No one transaction blocks
    • No six confirmation delay
    • No miners, mining pools, mining equipment, or mining equipment manufacturers
    • Micro proof
    • Ripple can verify the state of any account or the validity of any transaction ter very few bytes. This obviates the need to download a block chain.
    • Deterministic wallets
    • Ripple accounts can have master and regular pass phrases.

      Use the regular pass phrase for day-to-day transactions. If it is everzwijn compromised, use the master pass phrase to switch the regular pass phrase.

    • Wallet contacts and transaction annotations are stored te encrypted form ter the Ripple network.
    • Disintermediate the need for 3rd party online wallet providers.

    For fiat currencies, Ripple permits parties to have balances and trust boundaries inbetween them. To make this effortless to conceptualize, Ripple uses the IOU metaphor.

    The IOU metaphor:

    • Anyone can create their own IOUs.

    You can’t create someone else’s IOUs spil you can’t forge their signature.

  • You can choose which IOUs you accept and te what amount.
  • No one can force you to take their IOUs.

  • The issuer of an IOU has no obligation to lodge with you if you don’t have a settlement agreement.
  • Only accept IOUs you believe will have future value.

  • If you hold someone else’s IOUs and they default, you are out that amount of value.
  • Even the most trustworthy people may default due to death, family emergency, or other circumstances beyond their control.

  • You can pay anyone te IOUs that they accept.
  • You vereiste accept your own IOUs spil payment.
  • An IOU is not a loan but a record of the current balance due. Ripple manages balances and boundaries.

    Loans inbetween family, friends, and strangers can lead to trouble. It is recommended to only extend trust for IOUs to trustworthy businesses like a Canap or Gateway.

    A Gateway is a business that professionally issues IOUs, and a bridge inbetween the Ripple network and the traditional financial system. Gateways typically permit customers to wire, ACH, and SEPA funds to and from the Gateway into and out of the Ripple network. Wij expect all major Bitcoin exchanges to also operate spil Ripple Gateways.

    All Gateway IOUs are backed by specie spil Gateways do not extend credit. Gateways require a specie deposit very first ter order to kwestie an omschrijving IOU. It is possible for a Gateway to operate spil a fractional reserve. To avoid this, check the Gateway’s terms of service before opening an account.

    Anonymity is not a vormgeving purpose for Ripple. However, Ripple has features to provide privacy.

    No association

    Like Bitcoin, if you do not tell anyone your address, people will not know that the address is associated with you. People can choose to have a public address for sending and receiving payments and a private address for anonymously holding funds.

    Proxied payments

    Payment can be proxied via a Gateway. This means that when someone wants to pay an address, the payment is proxied to the Gateway, which credits the payee’s Gateway account. This effectively anonymises the payment to the other party. If authorities need access to transaction records, they can subpoena the Gateway.

    This has bot a schrijven introduction to Ripple.

    Related movie: GPU Mining V.S ASIC Mining!! Which One Should You Choose??

    Leave a Reply

    Your email address will not be published. Required fields are marked *