The most unpopular coin — Ruibo in-depth interpretation!

In recent days, Ripple’s performance has really made people shine, and they have doubled in a short time. Many of their friends have regretted not getting on the train in time. In fact, it doesn’t matter if you regret it, because once you give another chance, you can’t get on the bus. Why? I have no confidence, I dare not buy it. Since the beginning of the world, Ripple coin has been criticized. In the top ten cryptocurrencies of the market value, if you have to choose the most unrecognized currency, it is none other than Ripple.

Ripple history sins listed by everyone:

1. Ripple is a pseudo-revolution of the blockchain. It is not really “decentralized.”

2. There are also 100 billion Ripple coins issued. Most of the current Ripple coins are stored in the company.

3. Ripple coins lack distributed nodes and are more likely to be lost than other digital currencies.

4. The bank did not use Ripple coins. Although Ripple has always advocated that it is a partner of many banks and financial institutions, it has nothing to do with Ripple.

Based on this, many people have an ambiguous impression of Ripple, so that it is simple and rude to avoid, even there will be voices in our bones telling us that Ripple should not touch, garbage air coins. However, the reality is actually playing on our faces. According to the ripple coin news, Ripple took the lead in breaking through this dark bear market.

It’s not terrible to be a spectator during the Ripple’s skyrocketing period. The skyrocketing is an opportunity or a trap. If you don’t do too much homework, you have to buy in all likelihood to be trapped. The scary thing is that we are still indifferent to such a Ripple. In fact, most people should be alert, what does the real Ripple look like?

Background: Current cross-border payment issues

Existing cross-border payments are provided through the Global Interbank Financial Telecommunications Association (SWIFT). But the cost of this service is quite expensive. If you want to cross-border US dollars, cross-border remittances, first you have to pay about 35–55 US dollars per handling fee (different handling fees in different countries), if the local national currency is to be exchanged for US dollars, then a 2.5% currency conversion Fees and exchange rate losses. In addition, due to the lag of system settlement, you still need to wait 2–3 days. That is to say, cross-border transfer under the current system does not only cost a lot of money but also takes a lot of time.

The original Ripple was broken out to solve the above problems.

Unclear Ripple

Ripple has established a global payment network, a typical Real Time Gross Settlement (RTGS), and is an interbank electronic transfer system established to international standards. In its main application of cross-border remittances, Ripple can be seen as a strong competitor in the SWIFT system of the global interbank financial telecommunications association. And offers three solutions, xCurrent, xRapid, xVia.

Due to the small amount of Chinese materials, there are very few readable versions available. Most people don’t know much about the three solutions. In particular, the concept of xCurrent and xRapid is blurred, which leads to many misunderstandings. For example, why do some people criticize that xCurrent’s large number of applications have nothing to do with Ripple Value? What is the relationship between xCurrent and xRapid? What role does the Ripple coin play in it? How is the Ripple blockchain technology applied? Most of the media are inconsistent, and the ambiguity is said. Uncle has consulted a lot of information and sorted out the logic of the two solutions.

xCurrent: Beginning with InterLedger Protocal (hereafter referred to as ILP), a technology protocol for cross-chain value transfer proposed by Ripple. ILP created a system in which two different ledger systems can freely convert currencies to each other through third-party “connectors.” The bookkeeping system does not need to trust the “connector” because connector accounting uses distributed accounting and Ripple consensus to ensure the accuracy of accounting. The protocol uses a cryptographic algorithm to create a fund custody for the two ledger systems and connectors, and when all certifier nodes (similar to supernodes) agree on funding, they can trade with each other. The ILP removes the trust required by the trading participants, and the connector does not lose or steal funds, which means that the transaction does not require legal contract protection and excessive review, which greatly reduces the threshold. To put it simply, it is the IPL agreement that has changed the life of SWIFT. In the process of cross-border transfer, there is no longer a need for a third party to accept information, and to match transactions, but to ensure the security of funds through a credible distributed ledger. At the same time, the transfer is automatically realized.

xCurrent is based on Interledger’s distributed ledger, which solves the trust problem between different banks through the Ripple consensus protocol, realizing the transfer of real security and low commission. It should be reminded that the certifiers in the Ripple network do not have Token revenue during the accounting process (similar to the alliance chain), so the xCurrent solution is indeed independent of the Ripple chart.

xRapid: Simply understood to include XRP (Ripple Coin) in xCurrent’s solution. The role of XRP lies in the value exchange medium, which is an intermediary tool, which has nothing to do with accounting, and has nothing to do with the blockchain. So how is the Ripple coin used in xRapid? For example: Bank of China hopes to send 1 million yuan to Bank of America. Bank of China will purchase an XRP worth RMB 1 million from China’s XRP market makers, and it will immediately send the XRP to Bank of America. Bank of America will sell the XRP to the US dollar XRP market maker and the transfer is completed. Part of the XRP was permanently destroyed as a fee throughout the process. xRapid is still in development and now has Western Union and MoneyGram participating in the trial. So the question is, since we can implement the function of cross-border transfer, why should we use xRapid (Ripple coin)?

1. It is easy to use the xRapid function in a system that has access to xCurrent.

2, saving 30% transfer fee

3, the use of competitors will weaken the competitiveness of their services

4, eliminate the NOSTRO account (accounting: I am in the current account opened by him)

The NOSTRO account is idle in foreign bank accounts and the amount of billions of dollars that need to be transferred through SWIFT is released. At the same time, the funds that are locked in the “in flight” for 3–5 days in the SWIFT transaction will also be liberated, which means The money can immediately spend the money again. Therefore, instead of only one transaction per week, the same funds can be re-used for potential thousands of transactions within a week.

In the end, will Ripple succeed?

When Ma Yun wanted to use the life of Alipay Bank, the domestic financial giants, in addition to arrogance and hostility, were more disdainful, but the impact of the Internet’s public opinion made them unprepared and lost. Now the second son of the blockchain, Ripple, is coming, whether it is a hug or a spit. For financial institutions, it is time to make a choice.