tl,dr Ripple (XRP) is a fresh decentralized Bitcoin-like currency that doesn’t require a blockchain or mining. The Ripple network also supports sending and trading inbetween any currency enabling true decentralized BTC exchanges. Ripple and Bitcoin can work together to expand each other’s reach. Wij are the very first VPN to accept Ripple.
Spil Bitcoin approaches the 30$ mark for the 2nd time, wij are proud to announce that wij are the very first VPN to accept a brand fresh currency, Ripple, the very first cryptocurrency that truly has a slok at challenging with Bitcoin. Up until this point, all other decentralized digital currencies which attempted to rival were essentially cheap knockoffs of Bitcoin. Ripple is the very first true innovation te decentralized cryptocurrencies since Satoshi Nakamoto released Bitcoin.
Wij’d like to begin off with a plain list of Ripple’s advantages and disadvantages te relation to Bitcoin. Ripple has no blockchain, no mining, and no hard limit on number of transactions vanaf 2nd. Because of this, its transactions can be fully confirmed within seconds rather than hours. Since there is no mining, there is no 51% attack, which te Bitcoin permits someone who invests enough money to either dual spend or shut down the entire network. It also makes Ripple a “greener” cryptocurrency spil no “pointless” computation has to go into confirming its transactions.
Ripple’s major disadvantage to Bitcoin is that it starts out with 100% of Ripple Credits (XRP or ripples) being totally managed by their originator, a corporation, OpenCoin Inc (founded by Jed McCaleb of MtGox and eDonkey fame). Te tegenstelling, bitcoins began out not existing at all, but came into existence via mining, a process open to anyone who wasgoed so inclined to participate. OpenCoin will overheen the course of a few years attempt to distribute 80% of all XRP ter spil fair a way spil possible. Whereas most bitcoins were mined by a puny amount of individuals early on (for a price much much cheaper than today’s), OpenCoin wants to distribute ripples te a more even style inbetween a much larger number of people. So some will say Ripple is more fair because of this, while others will say it’s less fair because a single organization is treating the process rather than a free market mechanism. Other than the distribution mechanism XRP is just the same spil BTC, it’s a motionless supply currency enforced by every peer, and once you have them, they are yours. There is no counterparty risk and they will be yours until you choose to send them on to someone else. Ripple’s other visible disadvantage is that it’s much more alpha than Bitcoin. While Bitcoin is still a very alpha technology spil well, it has stood up fairly well thus far. It will be years before Ripple can truly eis to be an invulnerable payment processing network.
But none of this matters, Bitcoin and Ripple were made for each other. Ripple is how Bitcoin will scale, ter both a technological sense spil well spil ter adoption. Bitcoin has a hard limit on the number and size of transactions it can process vanaf 2nd. While there is much debate ter the Bitcoin community about lifting this limit, doing so would be omschrijving to creating an entirely fresh Bitcoin network and migrating everyone onto it. Not an effortless task to say the least. Ripple’s two largest achievements are solving the dual spend problem without a blockchain and inventing a decentralized way to send and exchange non Ripple currencies overheen its network. The latter enables two things which will truly permit Bitcoin to flourish: 1) Most Bitcoin transactions can be done through the Ripple network, only to be lodged on the blockchain when absolutely necessary. Two) True decentralized Bitcoin exchanges will now be possible via trading on the Ripple network.
Effortless to understand is one of the things Ripple isn’t, but wij’ll attempt to give an example of how you might pay a merchant ter BTC via the Ripple network. The very first thing to understand is that the Ripple network will have many gateways that will hold the actual currency which is being transacted overheen Ripple. Anyone can commence their own gateway and hold other people’s currencies. So let’s say there are two gateways, gateway A and gateway B. You trust gateway A with your BTC and the merchant you want to pay trusts gateway B with their BTC. This means there are effectively two types of BTC on the Ripple network: BTC/A and BTC/B. Even tho’ they both represent BTC they aren’t omschrijving. Since the merchant doesn’t trust gateway A he can’t do anything with BTC/A. This is where the exchange comes ter. There are market makers on the Ripple network who will convert to and from any currency pair. So let’s assume someone has an open trade of 1 BTC/A for 1 BTC/B. When you attempt to send 1 BTC to the merchant, Ripple will see that you have BTC/A, he wants BTC/B, and that a trade inbetween them exist. All te one go it will deduct the BTC from your account, execute the order, converting the BTC/A into BTC/B, and credit it into the merchant’s account. Now the merchant can either hold on to the BTC te the Ripple network or send it to his gateway (gateway B) and withdraw the “real” BTC from them onto the Bitcoin blockchain.
The awesome thing about the above process is that it works for any currency, not just BTC. You can do the precies same thing with dollars, effectively permitting you to transact USD privately outside of the traditional banking system. Spil stated above you can also convert inbetween USD and any other currency of your choice ter a totally decentralized style. This opens up a world of possibilities.