Ripple
Introduction
Ripple (XRP) is the currency that runs on a digital payment platform called RippleNet. It is also the company behind xRapid, xCurrent and XRP Solutions, which is on top of a distributed
ledger database which is called XRP Ledger.
The XRP Ledger is open source and is not based on blockchain, but rather the previously mentioned distributed ledger database.
The RippleNet payment platform is a real-time gross settlement (RTGS) system that aims to enable instant monetary transactions globally. While XRP is the cryptocurrency native to the
XRP Ledger
Who Is the Founder of Ripple
The idea behind the Ripple payment platform was first voiced in 2004 by Ryan Fugger. In yeah 2012 Jed McCaleb and Chris Larson took over the project and built Ripple (at the time, it was also called OpenCoin).
The goal was to capitalize on the financial relations between network participants to eliminate the need for banks.
This concept would later serve as the cornerstone of the crypto model that Jed McCaleb an early Bitcoin pioneer and founder of Mt. Gox exchange proposed as an alternative to Bitcoin back in 2011.
In 2012, Fugger officially handed over RipplePay to McCaleb and Chris Larsen a serial entrepreneur and today, Ripple’s executive chairman.
What Makes Ripple Unique
Instead of using the blockchain minning concept, Ripple Network ueses a unique diatributed consensus mechanism to validate transactions in which participating nodes veridfy the authenticity of a transaction by conducting a poll.
This enables almost instant confirmation without a central authority. Ripple is a payment seetling, currency exchange and remittance system proposed for banks and payment networks.
Milestones of Ripple
May 2011, Jed McCaleb began developing the digital currency system in which transactions are verified by consensus
August 2012, Jed McCaleb hired Chris Laren and they approached Ryan Fugger with their digital currency idea.
September 2012, Chris Larsen and Jed McCaleb co-founded the corporation **OpenCoin
April 11, 2013, OpenCoin announced it had closed an angel round of funding with several venture capital Firms.
April 2013, OpenCoin Acquired SimpleHoney to help it popularize virtual currencies and make them easier for average users.
September 26, 2013, OpenCoin officially changed its name to to Ripple Labs, Inc.
June 13, 2016, Ripple obtained a virtual currency Licence from the New York State Department of Financial Services, making it the fourth company with a **BitLicence
How Is Ripple Network Secured
XRP is proposed as security.
What are Central Bank Digital Currencies
Central bank digital currencies or CBDCs are digital versions of fiat currencies. You can think of them as a centralized cryptocurrency network. The central bank of the country issues and regulates CBDCs, which are electronic recordings or tokens of that country currency.
CBDCs make the monetary policy easier to execute and may help an economy develop by bringing the unbanked into the financial system. CBDCs are currently in various stages of development around the world. However, because we centralized these forms of currency, they might erode citizens' privacy.
How Central Bank Digital Currencies (CBDCs) Work
The word "fiat money" refers to currency issued by the government of a nation. They are available as banknotes and coins. It is a kind of legal money that we may use for the purchase and sale of goods and services and other types of transactions.
These centralized cryptocurrencies serve as a unit of account, a store of value, and a medium of exchange in everyday transactions. They provide consumers with the conventional banking system convenience, security, and reserve-backed circulation.
Because of the lack of suitable banking systems for some citizens in a country, we constantly see the rise of many financial technology solutions. Many individuals in Nigerian, for example, are unbanked. However, forming a CBDC may help the country economy become more financially inclusive.
Things to understand
As a kind of money, these centralized currencies have the potential to degrade privacy.
Many nations are looking into introducing and using CBDCs, even if they are not being used officially.
Classifications of Central Bank Digital Currencies (CBDCs)
Let us talk about the fundamental aspects of wholesale and retail central bank digital currencies and have a comparison between the two kinds.
Central Bank Digital currencies are electronic representations of a country's fiat currency.
A country's central bank or monetary authority issues and regulates CBDCs.
CBDCs promote financial inclusion, besides streamlining monetary policy execution.
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