What is Ripple Protocol?
Before any of us can even deign to think of understanding what the Ripple Protocol is we need to first create a sound understanding of what Ripple is.
In simple words, Ripple is an infamous gross-settlement network. Now you might ask, what is a gross settlement network? Well to understand that you must first understand what a gross settlement is. A gross settlement is an endeavor under which a transfer of money takes place with the ground rules being that once the transaction process is complete and all the money has been wired the payment will be closed to the option of refunds. Thus, a gross settlement network, like Ripple, is one where monetary transactions that usually deal with large sums of money take place and these events occur in the actual or real time meaning that the entire transaction process is rather swift and sound. The feature of being incredibly fast has earned Ripple its rightful spot in the limelight. Read more about Ripple in this article.
Furthermore, Ripple also happens to be a currency exchange and a provider of a remittance network. This means that not only does this popular forum deal in multiple currencies thus welcoming a larger pool of customers, it also performs tasks with declared affiliates who give remittance services to those people who are members of the network. Remittance services, for those of you who do not know, are essential to those who work abroad and need to send money back to an individual who is located in their home country. Remittances serve as one of the biggest reasons behind monetary inflows into developing countries, like it literally competes with international aid. Thus, one can imagine all that Ripple has achieved by being a successful remittance network. Check out this article to learn more about Ripple cryptocurrency.
Ripple was brought into existence by an incorporation known as Ripple Labs. The company went through the trouble of making sure that Ripple was made to be a “distributed open source internet protocol”. If that immensely long phase strikes fear into your heart, then do not worry for the whole “Ripple Protocol Explanation Program” is just about to start.
Now when it comes to understanding inexplicably long gibberish like this you must first break it down. Distributed in this very context refers to network which has its components relayed onto different PCs which are however despite being different all connected to the same system. Open source in the context that has been mentioned above is a model or representation of a free from the hierarchal hegemony software development program which is supposed to boost a more upfront and comfortable type of alliance. A shining trait of open source is its ability to enable mass collaboration in a way that the production of any good or service becomes completely dependent upon a group of people who have to consider themselves the organization. Thus, as a result, a respectable number of people are work in harmony to attain a goal that they all have in common. Lastly, Internet Protocol – which is also referred to as IP – in this context has been mentioned as none other than the defining software or program for communications which enables you to share datagrams across different systems regardless of any boundaries. This is basically what keeps the internet running. So now if you throw in all those definitions together you can get a sound idea of what the Ripple Protocol is. Find more out here.
However, a sound idea is never enough and there is no harm in learning more than you already know about. The cryptocurrency that is handled by Ripple goes by the infamous initials of XRP. It was brought into existence in the year 2012, the year in which the Ancient Mayans predicted the world would come to an end, thank God they were wrong. This platform ensures that its users are treated with a special service of safe, swift, and almost cost free monetary transactions no matter what part of the globe you might be involved with. Such features are exactly what make it such a big player in the market and threaten the original bad boys like Bitcoin and that is also exactly why you must know and understand in-depth what the Ripple Protocol is. Furthermore, the Ripple Protocol makes sure of the fact that its users are never ever hampered by the volume of their transactions or by the notorious chargebacks.
Ripple is highly supportive of alternative currencies like fiat currency, almost any commodity, credit cards, mobile credit, or any other unit of value that is available. All these features are the reason Ripple has come about to be more widely known ad recognised for its Protocol over its infamous XRP – the cryptocurrency. Moreover, Ripple is not exclusive, meaning that it is open to all and everybody and anybody out there can become a member of the protocol that has taken the world by storm. Once a business or individual have gone through the process of registration they are provided with an access pass that gives them the ability to act the connecting link or the middle chain when it comes to clients wanting to exchange currencies, move their purchases on to the system, or perhaps just liquify their assets.
However much like anything else there is a small problem with this protocol. If you were to latch on to the balances and hold them using the gateway that you have been provided access to you undergo a major risk, known rather well to traditional bankers, and that risk is referred to as the risk of the counter-party. Basically, if the gateway fails, crashes, or loses its liability and these are all extremely possible and plausible options than you will indefinitely lose the entire monetary value of whatever it may have been that you were holding at the gateway. However, this issue can easily be solved by you making sure to only use the gateways you are familiar with and know for sure will not disappoint you. In this case, it is best to stay far away from any risky or, for lack of a better word, shady gateways.
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