X

Feedback + Support

Need Assistance? Notice something missing or broken? Let us know!

Press esc to dismiss

project icon for ripple

Ripple

XRP
$0.2409
0.53%
Positive delta icon
warning icon

Disclaimer

Note: We have flagged Ripple as a signal with reservations (see below)

Ripple is an open-source digital currency ledger and network designed for performing global financial payments, founded in 2012.

Overview

Project Stage

Live status icon

Amount Raised

$293,600,000.00

Market Cap

$10,909MM

Sector

Financial Services (Other)

Blockchain

Native token icon

Ripple

Funding Source

Equity Funding

Project Profile

Ripple is composed of a protocol called the Interledger Protocol (ILP) which has a built-in decentralized exchange, a network called RippleNet, a cryptoasset called XRP, several products (as described below), and a corporate entity, Ripple Labs. These work in tandem to facilitate payments between payment providers through their network, RippleNet. Ripple intends to scale to support throughput rivalling Visa, while requiring minimal energy consumption. Payment providers connecting to Ripple seek to benefit from faster and more affordable global payments and settlement times. The network promotes the use of XRP as a source of liquidity and to facilitate payments on RippleNet.

RippleNet is comprised of network of users including corporates, small banks, payment providers, and SME’s that engage with RippleNet’s three primary products to send and receive payments, which are processed by a distributed set of network validators:

  • xCurrent is a payment processing product that provides real time settlement and bidirectional messaging for banks and payment providers. Ripple cites a 4% failure rate for global payments that they intend for this product to solve.
  • xRapid is an on-demand liquidity pool of digital assets for banks and payment providers to use, where XRP is used as a bridge currency between assets.
  • xVia is an API that provides a standard payment interface for payment providers, corporates and SME’s to send global payments without creating their own bespoke integrations and networks.

RippleNet has processed roughly $15 million in transaction volume since its inception, and claims that they have amassed over 200 customers as of May 2019. The majority of those customers have been using the xCurrent product, without using XRP as a part of their workflow. In May 2019, Ripple’s global head of banking, Marjan Delattine, confirmed that 10 of their 200+ customers are using XRP in their Ripple payments workflows.

Ripple launched a grant program in May 2018 called Xpring (pronounced “Spring”) for startups that build on the XRP ledger and incorporate the XRP cryptoasset. In March 2019 Xpring partnered with Forte, a blockchain based gaming startup, that will manage a $100 million fund provided by Ripple, aimed at supporting game developers that have already built platforms with over 50,000 daily active users. Ripple launched a bank to bank money transfer app called “Money Tap” in October 2018 in collaboration with three banks: Resona, Suruga Bank, and SBI Sumishin Net Bank. Resona bank subsequently pulled out of the project.

Competitors or alternatives to Ripple’s network could be banks issuing their own stable currency for use internally, as is the case with JP Morgan issuing the JPM coin, or alternative payment processing ledgers such as Stellar.

Project Details

Ripple has strongly focused marketing towards banks and payment processing companies, as the Ripple network functions as a global financial settlements network. With XRP acting as a bridge currency, international banks and payment processing companies can connect using the Ripple protocol as the framework for a shared, international ledger supporting versatile transaction types. Ripple lays the infrastructure to connect these institutions, using the distributed ledger as an authoritative history of balances, debts, and transactions between banks and payment processing companies, optimizing international trading and settlements. This open-source ledger connects what would otherwise be private, internal ledgers of international financial institutions.

Distributed consensus on the Ripple network is achieved using the Ripple Consensus Algorithm. Nodes participating in the iterative consensus process evaluate transactions relayed from trusted validators, unique nodes assumed to be trustworthy, until a supermajority consensus is reached. Prior ledger states become unneeded with the closure of the most recent ledger, which will be used by the current validators as the basis for proposing the next round of transactions. Validating nodes may also participate in voting on new features and fees through the Ripple amendments system.

Thus far, the majority of the validators have been operated by Ripple Labs. Anyone can participate in Ripple’s consensus by running a validator node, though nodes must select the other nodes that they choose to trust. Ripple Labs provides recommendations for which validators to trust. As of May 2019, the network settles a ledger approximately every 4 seconds, can process ~1,500 transactions per second and has over 70 validators on the network (a full list of validators can be accessed here).

History

OpenCoin Inc., a corporation founded in September 2012 (not to be confused with David Chaum’s open source opencoin) started developing the Ripple Transaction Protocol (RTXP) based upon earlier concepts dating back to a predecessor project in 2004 called Ripplepay. In September 2013, OpenCoin Inc. rebranded to Ripple Labs Inc, and began establishing relationships with financial institutions, the first revealed in early 2014 with the Fidor Bank in Munich. Since then, Ripple has established itself on the Federal Reserve’s Faster Payments Task Force Steering Committee where Ryan Zagone, Head of Regulatory Relations, contributes.

Asset details

100 billion XRP were created upon Ripple’s genesis. As of March 2018, Ripple Labs held approximately 60% of XRP’s total supply (60 Billion). 55 Billion XRP have been locked in a publicly visible escrow account to be released at a rate of 1 Billion per month, for 55 months. Ripple promises to add back to the escrow account any XRP not used by Ripple within that month.

To activate a Ripple account for participation on the Ripple network, the account must make an initial deposit of 20 XRP. Every utilization of the network, regardless the transaction type, must destroy a small amount of XRP as a transaction cost, deterring spam and DOS attacks. Ripple Labs promotes that XRP is the ideal cryptoasset to use for global payments due to faster settlement times at 4 seconds, while BTC settles at 1+ hours and ETH at 2+ minutes, and higher transaction throughput, at 1500 transactions per second (TPS) compared with BTC (3-6 TPS) and ETH (15 TPS).

Historically, Ripple has been criticized over the highly centralized nature of the project’s consensus, governance and XRP cryptoasset. The team addresses their plan for introducing increased decentralization over time, here.

DISCLAIMER

Signals are projects that have sufficiently demonstrated relevance in the industry in some form, for at least a finite period of time, as collectively agreed upon by Smith + Crown’s team of professional blockchain researchers. Our team has concluded that Ripple qualifies as a signal at this time.

That said, this project has demonstrated characteristics that we find concerning and feel a responsibility to communicate upfront. Those concerns are as follows:

  • Control over governance, cryptoasset, or another aspect of the system may be overly centralized
  • Lack of transparency, contradicting information, or missing information around critical system details

Status as Signal is always subject to revision based on the best available evidence of a project’s performance and industry trends. It’s imperative that you gather your own facts, evidence and make your own educated assessment of this, and every blockchain-based project. This disclaimer, research profile, and other Smith + Crown content is meant to highlight considerations that help you arrive at your own independent conclusions.

project icon for ripple

Ripple

XRP
$0.2409
0.53%
Positive delta icon
warning icon

Disclaimer

Note: We have flagged Ripple as a signal with reservations (see below)

Ripple is an open-source digital currency ledger and network designed for performing global financial payments, founded in 2012.

Overview

STATUS

MARKET CAP

BLOCKCHAIN

TOKEN TYPE

Live status icon
Live
$10,909MM
Native token icon

Ripple

N/A

FUNDING SOURCE

AMOUNT RAISED

SECTOR

Equity Funding

$294MM

Financial Services (Other)

Project Profile

Ripple is composed of a protocol called the Interledger Protocol (ILP) which has a built-in decentralized exchange, a network called RippleNet, a cryptoasset called XRP, several products (as described below), and a corporate entity, Ripple Labs. These work in tandem to facilitate payments between payment providers through their network, RippleNet. Ripple intends to scale to support throughput rivalling Visa, while requiring minimal energy consumption. Payment providers connecting to Ripple seek to benefit from faster and more affordable global payments and settlement times. The network promotes the use of XRP as a source of liquidity and to facilitate payments on RippleNet.

RippleNet is comprised of network of users including corporates, small banks, payment providers, and SME’s that engage with RippleNet’s three primary products to send and receive payments, which are processed by a distributed set of network validators:

  • xCurrent is a payment processing product that provides real time settlement and bidirectional messaging for banks and payment providers. Ripple cites a 4% failure rate for global payments that they intend for this product to solve.
  • xRapid is an on-demand liquidity pool of digital assets for banks and payment providers to use, where XRP is used as a bridge currency between assets.
  • xVia is an API that provides a standard payment interface for payment providers, corporates and SME’s to send global payments without creating their own bespoke integrations and networks.

RippleNet has processed roughly $15 million in transaction volume since its inception, and claims that they have amassed over 200 customers as of May 2019. The majority of those customers have been using the xCurrent product, without using XRP as a part of their workflow. In May 2019, Ripple’s global head of banking, Marjan Delattine, confirmed that 10 of their 200+ customers are using XRP in their Ripple payments workflows.

Ripple launched a grant program in May 2018 called Xpring (pronounced “Spring”) for startups that build on the XRP ledger and incorporate the XRP cryptoasset. In March 2019 Xpring partnered with Forte, a blockchain based gaming startup, that will manage a $100 million fund provided by Ripple, aimed at supporting game developers that have already built platforms with over 50,000 daily active users. Ripple launched a bank to bank money transfer app called “Money Tap” in October 2018 in collaboration with three banks: Resona, Suruga Bank, and SBI Sumishin Net Bank. Resona bank subsequently pulled out of the project.

Competitors or alternatives to Ripple’s network could be banks issuing their own stable currency for use internally, as is the case with JP Morgan issuing the JPM coin, or alternative payment processing ledgers such as Stellar.

Project Details

Ripple has strongly focused marketing towards banks and payment processing companies, as the Ripple network functions as a global financial settlements network. With XRP acting as a bridge currency, international banks and payment processing companies can connect using the Ripple protocol as the framework for a shared, international ledger supporting versatile transaction types. Ripple lays the infrastructure to connect these institutions, using the distributed ledger as an authoritative history of balances, debts, and transactions between banks and payment processing companies, optimizing international trading and settlements. This open-source ledger connects what would otherwise be private, internal ledgers of international financial institutions.

Distributed consensus on the Ripple network is achieved using the Ripple Consensus Algorithm. Nodes participating in the iterative consensus process evaluate transactions relayed from trusted validators, unique nodes assumed to be trustworthy, until a supermajority consensus is reached. Prior ledger states become unneeded with the closure of the most recent ledger, which will be used by the current validators as the basis for proposing the next round of transactions. Validating nodes may also participate in voting on new features and fees through the Ripple amendments system.

Thus far, the majority of the validators have been operated by Ripple Labs. Anyone can participate in Ripple’s consensus by running a validator node, though nodes must select the other nodes that they choose to trust. Ripple Labs provides recommendations for which validators to trust. As of May 2019, the network settles a ledger approximately every 4 seconds, can process ~1,500 transactions per second and has over 70 validators on the network (a full list of validators can be accessed here).

History

OpenCoin Inc., a corporation founded in September 2012 (not to be confused with David Chaum’s open source opencoin) started developing the Ripple Transaction Protocol (RTXP) based upon earlier concepts dating back to a predecessor project in 2004 called Ripplepay. In September 2013, OpenCoin Inc. rebranded to Ripple Labs Inc, and began establishing relationships with financial institutions, the first revealed in early 2014 with the Fidor Bank in Munich. Since then, Ripple has established itself on the Federal Reserve’s Faster Payments Task Force Steering Committee where Ryan Zagone, Head of Regulatory Relations, contributes.

Asset details

100 billion XRP were created upon Ripple’s genesis. As of March 2018, Ripple Labs held approximately 60% of XRP’s total supply (60 Billion). 55 Billion XRP have been locked in a publicly visible escrow account to be released at a rate of 1 Billion per month, for 55 months. Ripple promises to add back to the escrow account any XRP not used by Ripple within that month.

To activate a Ripple account for participation on the Ripple network, the account must make an initial deposit of 20 XRP. Every utilization of the network, regardless the transaction type, must destroy a small amount of XRP as a transaction cost, deterring spam and DOS attacks. Ripple Labs promotes that XRP is the ideal cryptoasset to use for global payments due to faster settlement times at 4 seconds, while BTC settles at 1+ hours and ETH at 2+ minutes, and higher transaction throughput, at 1500 transactions per second (TPS) compared with BTC (3-6 TPS) and ETH (15 TPS).

Historically, Ripple has been criticized over the highly centralized nature of the project’s consensus, governance and XRP cryptoasset. The team addresses their plan for introducing increased decentralization over time, here.

DISCLAIMER

Signals are projects that have sufficiently demonstrated relevance in the industry in some form, for at least a finite period of time, as collectively agreed upon by Smith + Crown’s team of professional blockchain researchers. Our team has concluded that Ripple qualifies as a signal at this time.

That said, this project has demonstrated characteristics that we find concerning and feel a responsibility to communicate upfront. Those concerns are as follows:

  • Control over governance, cryptoasset, or another aspect of the system may be overly centralized
  • Lack of transparency, contradicting information, or missing information around critical system details

Status as Signal is always subject to revision based on the best available evidence of a project’s performance and industry trends. It’s imperative that you gather your own facts, evidence and make your own educated assessment of this, and every blockchain-based project. This disclaimer, research profile, and other Smith + Crown content is meant to highlight considerations that help you arrive at your own independent conclusions.

Recent News

SBI Holdings to distribute XRP as benefits to shareholders this year.

The financial services company will give shareholders holding more than 1,000 shares the option to receive between 2,000 and 8,000 yen worth of XRP, depending on length of time the shares have been held. However, eligible shareholders must be Japanese residents and have an account with SBI's crypto exchange, VC Trade. SBI, which invested in Ripple's $200M Series C round, have previously offered XRP as shareholder benefits.

January 31, 2020

Sources:

more

Ripple completes $200M Series C led by Tetragon.

The blockchain payments project raised $200M from investors including SBI Holdings and Route 66 Ventures, which it intends to use to increase XRP adoption. The round reportedly valued Ripple at $10B. Ripple's CEO, Brad Garlinghouse, stated expectations of 40% growth in customer base and 600% growth in volume in 2020.

December 20, 2019

Sources:

more

Ripple has aquired a $50M stake in MoneyGram.

The blockchain payments startup completed the purchase today with a final payment of $20M, buying shares at $4.10, over a dollar more than market price. Ripple now owns around 10% of MoneyGram. Earlier this year, MoneyGram began using Ripple's blockchain-based payment technology in Europe, Australia and the Philippines.

November 26, 2019

Sources:

CoinDesk
Load More
Show projects Article List
Sort icon: direction descending
Profile Updated
166d
Project details updated.
No icon fallback
ALTG
Profile Updated
166d
Project details updated.
Project Added as Signal
179d
Project details updated.
Profile Updated
179d
Project details updated.
Profile Updated
180d
Project details updated.
project icon for beam
BEAM
Profile Updated
180d
Project details updated.
Profile Updated
185d
Project details updated.
Profile Updated
185d
Project details updated.
project icon for qtum
QTUM
Profile Updated
190d
Project details updated.
Profile Updated
190d
Project details updated.
Profile Updated
191d
Project details updated.
project icon for aion
AION
Profile Updated
191d
Project details updated.
Profile Updated
192d
Project details updated.
project icon for grin
GRIN
Profile Updated
192d
Project details updated.
Profile Updated
193d
Project details updated.
Profile Updated
193d
Project details updated.
Profile Updated
197d
Project details updated.
project icon for kadena
KADENA
Profile Updated
197d
Project details updated.
project icon for chia
CHIA
Profile Updated
199d
Project details updated.
project icon for waves
WAVES
Profile Updated
199d
Project details updated
Profile Updated
201d
Project details updated.
Profile Updated
201d
Project details updated.
Profile Updated
204d
Project details updated.
No icon fallback
KLAY
Profile Updated
204d
Project details updated.
Profile Updated
205d
Project details updated.
project icon for neo
NEO
Profile Updated
205d
Project details updated.
Profile Updated
206d
Project details updated.
Profile Updated
206d
Project details updated.
project icon for aelf
ELF
Profile Updated
207d
Project details updated.
project icon for eos
EOS
Profile Updated
207d
Project details updated.
Profile Updated
208d
Project details updated.
Profile Updated
208d
Project details updated.
project icon for storj
STORJ
Profile Updated
212d
Project details updated.
Profile Updated
213d
Project details updated.
Profile Updated
213d
Project details updated.
project icon for zrx
ZRX
Profile Updated
214d
Project details updated.
project icon for tether
USDT
Profile Updated
214d
Project details updated.
project icon for wax
WAXP
Profile Updated
215d
Project details updated.
Profile Updated
215d
Project details updated.
Profile Updated
218d
Project details updated.
Profile Updated
218d
Project details updated.
Profile Updated
219d
Project details updated.
project icon for tzero
TZEROP
Profile Updated
219d
Project details updated.
Profile Updated
220d
Project details updated.
Profile Updated
220d
Protocol and asset details updated.
project icon for skale
SKALE
Project Added as Signal
220d
SKALE is an Ethereum Layer 2 scalability protocol facilitating the formation and operation of on-demand elastic sidechains.
Project Added as Signal
239d
TrueBit is a distributed marketplace for off-chain computation of resource-intensive smart contracts, verifying proper results using a game theory-based incentive structure rather than cryptographic proofs.
Project Added as Signal
250d
Spacemesh is a cryptocurrency and smart contract platform operating on directed acyclic graph infrastructure and utilizing a Proof-of-Spacetime consensus algorithm that intends to achieve a more equitable distribution of mining rights by decoupling the conferment thereof with access to financial means.
No icon fallback
BZRX
Project Added as Signal
252d
bZx is an Ethereum-based, decentralized cryptoasset lending protocol that facilitates margin trading of ETH and ERC-20 tokens.
Project Added as Signal
256d
Oasis Network is a permissionless, blockchain-based cloud computing platform that aims to improve upon the scalability and privacy of its peers through novel architecture.
Project Added as Signal
267d
FTX is a cryptoasset derivatives exchange, powered by a proprietary liquidation engine and clawback prevention protocol, offering futures, leveraged tokens and an over-the-counter trading portal.
Project Added as Signal
271d
ThunderCore is a permissionless, Turing-complete smart contract platform offering full EVM-compatibility and PaLa, a new variant of Proof-of-Stake consensus, as its distinguishing features.
Project Added as Signal
274d
Santiment is a blockchain data and analytics provider offering content streams, data feeds and analysis, APIs and its own ERC-20 token, SAN.
Project Added as Signal
288d
Nexus Mutual is a blockchain-based, protocol-enabled mutual insurance fund operating on Ethereum and owned entirely by its members, who buy into the fund by purchasing NXM tokens.
Project Added as Signal
316d
Gods Unchained is a decentralized trading card game that uses the ERC-721 non-fungible token standard to establish on-chain ownership of cards to be used in off-chain gameplay.
Project Added as Signal
326d
Synthetix is a decentralized synthetic asset issuance protocol consisting of an Ethereum-based smart contract, an exchange, and a dApp to facilitate smart contract interaction.
project icon for zrx
ZRX
Profile Updated
331d
Update on 0x v3, including protocol fees, staking incentives, and liquidity pooling with Uniswap, Kyber, and Oasis.
No icon fallback
LUNA
Project Added as Signal
340d
Terra is an algorithmically-governed, seigniorage share style stablecoin blockchain platform to which a collection of fiat-pegged tokens and a stabilizing cryptoasset, Luna, are native.
Profile Updated
357d
Stellar Development Foundation burns 55 billion XLM from its reserves, over half of the total supply, and removes the ongoing inflation to current token holders. The SDF had previously earmarked these tokens for community airdrops and ongoing organization funding.
Project Added as Signal
372d
Nervos is a public, PoW-based smart contract platform that utilizes off-chain computation in service of transaction scalability and implements a unique token emissions mechanic that imposes a perpetual cost for on-chain data storage.
Profile Updated
383d
Supply Information added.
project icon for beam
BEAM
Profile Updated
385d
Supply Information added.
project icon for grin
GRIN
Profile Updated
385d
Supply Information added.
Profile Updated
388d
Supply Information added.
Profile Updated
388d
Supply Information added.
project icon for siacoin
SC
Profile Updated
388d
Mining Information added.
project icon for dash
DASH
Profile Updated
389d
Mining and Supply Information added.
Profile Updated
390d
Mining and Supply Information added.
Profile Updated
392d
Mining and Supply information added.
Profile Updated
393d
Mining and Supply Information added.
project icon for kin
KIN
Project Removed as Signal
400d
Kin removed as Signal.
project icon for simple
OST
Project Added as Signal
401d
OST added as Signal.
Profile Updated
415d
Signal profile updated.
Project Added as Signal
429d
Edgeware added as Signal.
Profile Updated
431d
Ethereum Classic profile added.
project icon for steem
STEEM
Profile Updated
443d
Signal profile updated.
Profile Updated
443d
Signal profile updated.
project icon for neo
NEO
Profile Updated
443d
Signal profile updated.
No icon fallback
KLAY
Project Added as Signal
443d
Klaytn added as Signal.
No icon fallback
ALTG
Project Added as Signal
449d
Althea added as Signal.
Profile Updated
456d
Signal profile updated.
No icon fallback
UMA
Project Added as Signal
463d
UMA added as Signal.
No icon fallback
LIBRA
Project Added as Signal
463d
Libra added as Signal.
Project Added as Signal
469d
Chainlink added as Signal.
Profile Updated
475d
Signal profile updated.
Profile Updated
481d
Signal profile updated.
project icon for chia
CHIA
Profile Updated
487d
Signal profile updated.
project icon for bitfinex-leo
LEOTOKEN
Project Added as Signal
493d
Bitfinex LEO added as Signal.
project icon for coda
CODA
Profile Updated
499d
Signal profile updated.
Project Added as Signal
505d
Paxos added as Signal.
project icon for celo
CELO
Project Added as Signal
511d
Celo added as Signal.

You've reached the end of the list

project icon for ripple

Ripple

XRP
$0.2409
0.53%
Positive delta icon
warning icon

Disclaimer

Note: We have flagged Ripple as a signal with reservations (see below)

Ripple is an open-source digital currency ledger and network designed for performing global financial payments, founded in 2012.

Overview

STATUS

MARKET CAP

BLOCKCHAIN

TOKEN TYPE

Live status icon
Live
$10,909MM
Native token icon

Ripple

N/A

FUNDING SOURCE

AMOUNT RAISED

SECTOR

Equity Funding

$294MM

Financial Services (Other)

Project Profile

Ripple is composed of a protocol called the Interledger Protocol (ILP) which has a built-in decentralized exchange, a network called RippleNet, a cryptoasset called XRP, several products (as described below), and a corporate entity, Ripple Labs. These work in tandem to facilitate payments between payment providers through their network, RippleNet. Ripple intends to scale to support throughput rivalling Visa, while requiring minimal energy consumption. Payment providers connecting to Ripple seek to benefit from faster and more affordable global payments and settlement times. The network promotes the use of XRP as a source of liquidity and to facilitate payments on RippleNet.

RippleNet is comprised of network of users including corporates, small banks, payment providers, and SME’s that engage with RippleNet’s three primary products to send and receive payments, which are processed by a distributed set of network validators:

  • xCurrent is a payment processing product that provides real time settlement and bidirectional messaging for banks and payment providers. Ripple cites a 4% failure rate for global payments that they intend for this product to solve.
  • xRapid is an on-demand liquidity pool of digital assets for banks and payment providers to use, where XRP is used as a bridge currency between assets.
  • xVia is an API that provides a standard payment interface for payment providers, corporates and SME’s to send global payments without creating their own bespoke integrations and networks.

RippleNet has processed roughly $15 million in transaction volume since its inception, and claims that they have amassed over 200 customers as of May 2019. The majority of those customers have been using the xCurrent product, without using XRP as a part of their workflow. In May 2019, Ripple’s global head of banking, Marjan Delattine, confirmed that 10 of their 200+ customers are using XRP in their Ripple payments workflows.

Ripple launched a grant program in May 2018 called Xpring (pronounced “Spring”) for startups that build on the XRP ledger and incorporate the XRP cryptoasset. In March 2019 Xpring partnered with Forte, a blockchain based gaming startup, that will manage a $100 million fund provided by Ripple, aimed at supporting game developers that have already built platforms with over 50,000 daily active users. Ripple launched a bank to bank money transfer app called “Money Tap” in October 2018 in collaboration with three banks: Resona, Suruga Bank, and SBI Sumishin Net Bank. Resona bank subsequently pulled out of the project.

Competitors or alternatives to Ripple’s network could be banks issuing their own stable currency for use internally, as is the case with JP Morgan issuing the JPM coin, or alternative payment processing ledgers such as Stellar.

Project Details

Ripple has strongly focused marketing towards banks and payment processing companies, as the Ripple network functions as a global financial settlements network. With XRP acting as a bridge currency, international banks and payment processing companies can connect using the Ripple protocol as the framework for a shared, international ledger supporting versatile transaction types. Ripple lays the infrastructure to connect these institutions, using the distributed ledger as an authoritative history of balances, debts, and transactions between banks and payment processing companies, optimizing international trading and settlements. This open-source ledger connects what would otherwise be private, internal ledgers of international financial institutions.

Distributed consensus on the Ripple network is achieved using the Ripple Consensus Algorithm. Nodes participating in the iterative consensus process evaluate transactions relayed from trusted validators, unique nodes assumed to be trustworthy, until a supermajority consensus is reached. Prior ledger states become unneeded with the closure of the most recent ledger, which will be used by the current validators as the basis for proposing the next round of transactions. Validating nodes may also participate in voting on new features and fees through the Ripple amendments system.

Thus far, the majority of the validators have been operated by Ripple Labs. Anyone can participate in Ripple’s consensus by running a validator node, though nodes must select the other nodes that they choose to trust. Ripple Labs provides recommendations for which validators to trust. As of May 2019, the network settles a ledger approximately every 4 seconds, can process ~1,500 transactions per second and has over 70 validators on the network (a full list of validators can be accessed here).

History

OpenCoin Inc., a corporation founded in September 2012 (not to be confused with David Chaum’s open source opencoin) started developing the Ripple Transaction Protocol (RTXP) based upon earlier concepts dating back to a predecessor project in 2004 called Ripplepay. In September 2013, OpenCoin Inc. rebranded to Ripple Labs Inc, and began establishing relationships with financial institutions, the first revealed in early 2014 with the Fidor Bank in Munich. Since then, Ripple has established itself on the Federal Reserve’s Faster Payments Task Force Steering Committee where Ryan Zagone, Head of Regulatory Relations, contributes.

Asset details

100 billion XRP were created upon Ripple’s genesis. As of March 2018, Ripple Labs held approximately 60% of XRP’s total supply (60 Billion). 55 Billion XRP have been locked in a publicly visible escrow account to be released at a rate of 1 Billion per month, for 55 months. Ripple promises to add back to the escrow account any XRP not used by Ripple within that month.

To activate a Ripple account for participation on the Ripple network, the account must make an initial deposit of 20 XRP. Every utilization of the network, regardless the transaction type, must destroy a small amount of XRP as a transaction cost, deterring spam and DOS attacks. Ripple Labs promotes that XRP is the ideal cryptoasset to use for global payments due to faster settlement times at 4 seconds, while BTC settles at 1+ hours and ETH at 2+ minutes, and higher transaction throughput, at 1500 transactions per second (TPS) compared with BTC (3-6 TPS) and ETH (15 TPS).

Historically, Ripple has been criticized over the highly centralized nature of the project’s consensus, governance and XRP cryptoasset. The team addresses their plan for introducing increased decentralization over time, here.

DISCLAIMER

Signals are projects that have sufficiently demonstrated relevance in the industry in some form, for at least a finite period of time, as collectively agreed upon by Smith + Crown’s team of professional blockchain researchers. Our team has concluded that Ripple qualifies as a signal at this time.

That said, this project has demonstrated characteristics that we find concerning and feel a responsibility to communicate upfront. Those concerns are as follows:

  • Control over governance, cryptoasset, or another aspect of the system may be overly centralized
  • Lack of transparency, contradicting information, or missing information around critical system details

Status as Signal is always subject to revision based on the best available evidence of a project’s performance and industry trends. It’s imperative that you gather your own facts, evidence and make your own educated assessment of this, and every blockchain-based project. This disclaimer, research profile, and other Smith + Crown content is meant to highlight considerations that help you arrive at your own independent conclusions.

Recent News

SBI Holdings to distribute XRP as benefits to shareholders this year.

The financial services company will give shareholders holding more than 1,000 shares the option to receive between 2,000 and 8,000 yen worth of XRP, depending on length of time the shares have been held. However, eligible shareholders must be Japanese residents and have an account with SBI's crypto exchange, VC Trade. SBI, which invested in Ripple's $200M Series C round, have previously offered XRP as shareholder benefits.

January 31, 2020

Sources:

more

Ripple completes $200M Series C led by Tetragon.

The blockchain payments project raised $200M from investors including SBI Holdings and Route 66 Ventures, which it intends to use to increase XRP adoption. The round reportedly valued Ripple at $10B. Ripple's CEO, Brad Garlinghouse, stated expectations of 40% growth in customer base and 600% growth in volume in 2020.

December 20, 2019

Sources:

more

Ripple has aquired a $50M stake in MoneyGram.

The blockchain payments startup completed the purchase today with a final payment of $20M, buying shares at $4.10, over a dollar more than market price. Ripple now owns around 10% of MoneyGram. Earlier this year, MoneyGram began using Ripple's blockchain-based payment technology in Europe, Australia and the Philippines.

November 26, 2019

Sources:

CoinDesk
Load More