Firstly, Ripple is an innovative Blockchain platform and one of the best-known cryptocurrency. The Ripple network is based on an open-source protocol which allows making swift and low-cost transactions. In contrast to Bitcoin that was never meant to be an uncomplicated payment machine, Ripple tries to build a worldwide system for international transactions. Looking ambitious, isn’t it? Of course, there’s a possibility that traditional banks can take a back seat in the next couple of years. The RippleNet has its coin called XRP, but everybody can create its currency. What is RippleNet? RippleNet is a well-known network which joins many financial institutions like banks and money services. These businesses use unique instruments that ensure a faultless experience of sending money around the world. Don’t get what it was about? Let us explain the nuts and bolts. Suppose that Mr Lee lives in Chicago and have a marshmallow box. However, he doesn’t like marshmallow and wants to get a ticket for a football game. Ms Anderson from New York has a super rare Magic: The Gathering card she would like to give away for a marshmallow box. Finally, there’s a Mr Grey from Detroit, who’s looking for a super rare MTG card and he has a ticket for a football game in Chicago. In the modern system, all of these three people would never find each other. Besides, it’s possible in the RippleNet universe. They could say: “I have marshmallow, I want football”. After that, the system will find the quickest and most affordable way to make it happen. Further, the Ripple platform supports payments for goods and services in any currency, including BTC, ETH or XRP. The minimal transaction fee is $0.00001 (you don’t think, the number is right). This system seems to be not decentralized, and it makes sense. The only reason it’s not free is to prevent cyber attacks. What is XRP Let’s define Ripple as a unique product. XRP is the digital currency of the Ripple network that only exists in the Ripple system. 1 XRP is parted into a million units called “drops”. The entire limited supply of XRP tokens (100 billion) has been pre-mined. Quasi-mining of the coin is available to all users. They can participate in scientific research supported by Ripple Labs, perform calculations or other actions using computational algorithms, and receive XRP tokens as a reward. Ripple owns 65% of all coins; the remaining 35% are issued on the crypto market. Users of the Ripple network are not required to use XRP. However, a 20 XRP deposit is needed for each Ripple account. XRP acts as a payment bridge that is used when a direct exchange of assets is not available. For example, Ripple coin might be useful when you deal with two rarely traded assets. On the Ripple network, XRP tokens are freely traded for fiat money or cryptocurrencies. Though, Ripple coin is considered as a mean of payment and a tool for exchange transactions, and not as an alternative digital currency. Who created Ripple (XRP) So, we found out what is Ripple and moving on with people who created XRP. The initial Ripple protocol with a practical model was created in 2004 by Ryan Fugger. However, things started to happen in 2013. It was the time when Jed McCaleb and Chris Larsen, known for the launch of the EDonkey network, will continue to work on Ripple startup. They told some of the most prominent investors to invest in the future project. And it seems that the history of Ripple has a happy end. All investments are finally bringing in a return. Who are Ripple Labs founders Chris Larsen is an angel investor, business executive and a privacy activist considered to be the wealthiest person in cryptocurrency. He has extensive experience in digital payments and loans area, so he quickly drew up a plan to modify these markets using the Ripple protocol. As a result, OpenCoin was renamed as Ripple Labs, and Larsen became its CEO. Jed McCaleb is one of the most influential people in the blockchain and cryptocurrency industry. Back in 2007, he got the domain Mtgox.com for his website for selling in-game items from Magic: The Gathering. However, due to the popularity of Bitcoin, a crypto exchange was created a couple of months later. In November 2011, McCaleb decided to sell the exchange despite its great popularity and the massive volume of Bitcoin trading. After that, Jed joined Ripple Labs and became one of the company’s chairmen. Who are Ripple Labs investors DateFundingtypeInvestorAmount($ mln)April 2013AngelAndreessen Horowitz, FF Angel LLC, Lightspeed Venture Partners, Pantera Capital, Vast Ventures, Bitcoin Opportunity Fund 2.5May 2013AngelGoogle Ventures, IDG Capital Partners 3.0November 2013SeedCore Innovation Capital, Venture51, Camp One Ventures, IDG Capital Partners 3.5May 2015Series AIDG Capital Partners, Seagate Technology, AME Cloud Ventures, ChinaRock Capital Management, China Growth Capital, Wicklow Capital, Bitcoin Opportunity Corp, Core Innovation Capital, Route 66 Ventures, RRE Ventures, Vast Ventures, Venture 51 28October 2015Series ASantander InnoVentures 4September 2016Series BStandard Chartered, Accenture, SCB Digital Ventures, SBI Holdings, Santander InnoVentures, CME Group, Seagate Technology 55 What is the Ripple protocol consensus algorithm (RPCA)? Ripple platform does not use blockchain technology. Transactions on the network are confirmed by a consensus process known as the Ripple Protocol Consensus Algorithm (RPCA). As part of this process, most servers, also referred to as nodes that are included in the Unique Node List must agree that the transaction is valid and that the sender has enough funds to complete the operation. RPCA is part of the Ripple Transaction Protocol (RTXP) payment method, developed in 2012 by OpenCoin. In February 2018, Ripple published two new whitepapers. They describe the consensus algorithm that underpins the XRP token and how to achieve greater diversification of the connections of each node on the network. The first document, called “Analysis of the XRP Ledger Consensus Protocol” provides evidence that this algorithm ensures the security and viability of the network as part of the planned stages of further network decentralization. It also includes the absence of forks. The second Ripple whitepaper provides an insight into Cobalt, a groundbreaking asynchronous consensus algorithm aimed at upgrading the existing XRP protocol by creating more flexibility in creating a unique list of nodes. What is Ripple used for As mentioned before, the Ripple network allows transactions between two persons with a patron, so that there will be no fraud. The most exciting thing is that during the exchange, both parties can transfer anything to each other. In this case, XRP acts as a mean of payment for the transaction fee, or payment in a non-standard situation. Anyone can create their Ripple-based coin that will be used in transactions with other persons as one of the parties. They can be used both for buying and selling and for holding on to their wallets. Generation of tokens takes no more than 5 minutes. Ripples XRP acts as a bridge between all crypto and fiat currencies. Moreover, Ripple allows banks to make prompt transactions and use promising technology. Using RippleNet, financial institutions can save on the use of various services that reduce the time allocated for performing certain banking operations. What are Ripple’s benefits? Let’s find out the most prominent advantages of the Ripple network and cryptocurrency: High transfer speed. It’s one of the best things about how does Ripple work. An XRP transaction is processed on average in 4 seconds, ETH – in 2 minutes, BTC – in an hour, and traditional banking systems – in 3-5 days;The lowest translation costs. There are five decimal places;Stability: XRP cryptocurrency is less volatile. That’s why it is convenient for most users (except speculators);Good scalability: 100 billion XRP is issued on the cryptomarket. Which banks support Ripple As we said before, RippleNet has the support of major financial institutions. The most crucial partners are: SantanderAxis BankYes BankWestpacUnion CreditNBADUBS Is Ripple a good investment? Ripple created a top-notch product for banks and other organizations. But is it an excellent way to invest? Let’s find out some Ripple pros and cons. Benefits: Very high speed of transactions, compared to other cryptocurrencies and the leading international banking system SWIFT. It’s the best way what does Ripple do.There’s the ability to use the system for exchanging different assets with a minimum transaction fee.Low currency rate, which makes it possible to buy the whole token even with a tiny amount of money.Ripple has the principle of reversibility of transactions. If errors are made, operations can be cancelled or edited.Availability on significant world exchanges and exchange offices.High level of protection against hackers and spammers.Ripple is not even theoretically subject to inflation, because new coins are not issued, and old ones are gradually leaving. Ripple cons: Ripple cryptocurrency is overly monopolized. Nearly 65% of tokens is concentrated in the wallets of Ripple Labs.In this regard, the further development of the system very much depends on the company’s policy. They can, for example, issue additional coins to the market, change the rules of exchange or something else that will affect the Ripple rate. Why is Ripple criticized? Ripple algorithm is often compared to PayPal and Amazon. This company announces plans to go public by the end of 2020, and its internal XRP token is among the three largest digital currencies by the market cap rate. However, it does not save Ripple from criticism. It is accused of being centralized and manipulating the course. Ripple executives have been accused of trying to dump the XRP rate through sales for several years. In 2018, they were suspected of manipulating transactions worth hundreds of millions of dollars. But the “whales” have repeatedly denied these accusations. It’s one of the most severe dark spots in the Ripple background. Another common accusation against Ripple is its centralization. According to Coin Metrics, 85% of XRP tokens are held in whale wallets. Moreover, Ripple has been criticized for having a profit-driven organization behind the protocol and the coin. It’s the opposite of Satoshi Nakamoto’s idea. Ripple’s Future. What the experts are saying? The latest Ripple news suggests that this cryptocurrency will only strengthen its position soon. The level of confidence among banks is gradually increasing to Ripple Labs. Ripple’s future is the subject of heated debate among active market participants. Firstly, an increase in the rate should be expected during dynamic BTC growth, which tends to pull the rest of the altcoins along with it. However, according to market research by Bloomberg, the biggest threat to XRP is the RippleNet software. What is a Ripple in the view of experts? One of the most famous XRP analysts is Robert Art. He’s a true Ripple enthusiast who is very optimistic about the future of the coin. Therefore, it is quite possible to adopt some of his ideas (of course, don’t forget to check their reliability). In his biography on Twitter, Robert wrote that the long-term target for XRP is $200. In a pinned tweet in April 2018, he notes that XRP will go for $10 and more. However, it did not happen two years later. Time will judge whether he is right or not. But it is worth remembering that at the dawn of the emergence of cryptocurrencies, most people were extremely sceptical about the future of this kind of money. Those who continued to stand their ground have multiplied their investments. Although goals of $10 or even $200 look fantastic, history knows many examples when sceptics, who have processed a large amount of initial data, were still wrong. If Ripple Labs continues to develop in a current way, we’ll see not only rising of the cryptocurrency rate but also RippleNet importance in the banking sector. Thus, we can conclude that Ripple virtual currency coin is a reliable means of payment and a profitable currency for investments in the long term.