Bitcoin Forum
October 19, 2017, 05:38:01 AM *
News: Latest stable version of Bitcoin Core: 0.15.0.1  [Torrent]. (New!)
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Been living under a rock. What is Ripple?  (Read 1045 times)
Remember remember the 5th of November
Legendary
*
Offline Offline

Activity: 1554

Reverse engineer from time to time


View Profile
April 12, 2013, 11:15:18 PM
 #1

Thread is serious. What the hell is Ripple??

BTC:1AiCRMxgf1ptVQwx6hDuKMu4f7F27QmJC2
1508391481
Hero Member
*
Offline Offline

Posts: 1508391481

View Profile Personal Message (Offline)

Ignore
1508391481
Reply with quote  #2

1508391481
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1508391481
Hero Member
*
Offline Offline

Posts: 1508391481

View Profile Personal Message (Offline)

Ignore
1508391481
Reply with quote  #2

1508391481
Report to moderator
1508391481
Hero Member
*
Offline Offline

Posts: 1508391481

View Profile Personal Message (Offline)

Ignore
1508391481
Reply with quote  #2

1508391481
Report to moderator
temor
Full Member
***
Offline Offline

Activity: 154



View Profile
April 12, 2013, 11:16:05 PM
 #2

Like Bitcoin, except you don't mine it, and it's all centralized.
( at least that's what I gathered )

Please make a post in my Reputation Thread if we've had a successful trade.
Sukrim
Legendary
*
Offline Offline

Activity: 2156


View Profile
April 12, 2013, 11:28:16 PM
 #3

Instead of buying something that has been created out of thin air (Bitcoins) you can create "IOUs" from thin air of something you already have.

Ripple then allows you to track these and resolves debt circles (there's a story about a guy who goes to check out a hotel and puts down 100 EUR deposit, then the guy from the hotel pays the barkeeper etc. until he gets the money back, then the guest leaves the hotel again and takes the money with him) automatically.

A potential use case would be a Ripple gateway that allows you to deposit USD and hands you USDs tracked on Ripple instead. you can then trade these for example for BTC, EUR or anything else. The person who then gets these USD can either redeem them at the gateway (e.g. get a back transfer) or use them for something else.

As Ripple does not really use mining like Bitcoin (there is no real need for distributing currency randomly as everybody can create their own currencies and consensus comes from who you trust, it doesn't have to be global) they use their XRP currency as some kind of "postage stamp" for transactions - they get destroyed if you do a transaction. It seems that Opencoin (the ones who built the current implementation) want to sell these XRP to cover costs. Currently they are relatively rare as they are only obtainable by the "faucet" in this forum. I guess once Opencoin starts selling them though, they will be worth next to nothing and only serve as anti spam measure after all.

Ripple is as decentralized as it can get, one of the biggest issues atm is that they didn't yet open source the server code to be able to implement changes that would be equivalent to a hard fork in Bitcoin without requiring their community to follow and/or build consensus. The other issue is that all XRP coins were pre-mined and are currently held mostly by Opencoin.

https://bitfinex.com <-- leveraged trading of BTCUSD, LTCUSD and LTCBTC (long and short) - 10% discount on fees for the first 30 days with this refcode: x5K9YtL3Zb
Mail me at Bitmessage: BM-BbiHiVv5qh858ULsyRDtpRrG9WjXN3xf
Luno
Sr. Member
****
Offline Offline

Activity: 476


Current balance: 00$$/00BTC


View Profile
April 12, 2013, 11:28:51 PM
 #4

And it's debt based like real money:

Ripple is a Bitcoin like P2P system to track debt between parties. The debt is transferable so you can "trade your debt"!!!

You can also be you own Ben Bernanke by agreeing with a friend that you owe each other $100.000,000. This debt claim can then be Broken up in shares and sold like Ripple XRP is. Instant money out of thin air like a bank!


 
 
           ▄████▄
         ▄████████▄
       ▄████████████▄
     ▄████████████████▄
    ████████████████████      ▄█▄                 ▄███▄                 ▄███▄                 ▄████████████████▀   ▄██████████

  ▄▄▄▀█████▀▄▄▄▄▀█████▀▄▄▄     ▀██▄             ▄██▀ ▀██▄             ▄██▀ ▀██▄             ▄██▀                   ██
▄█████▄▀▀▀▄██████▄▀▀▀▄█████▄     ▀██▄         ▄██▀     ▀██▄         ▄██▀     ▀██▄         ▄██▀        ▄█▄          ▀██████████████▄
████████████████████████████       ▀██▄     ▄██▀         ▀██▄     ▄██▀         ▀██▄     ▄██▀          ▀█▀                        ██
 ▀████████████████████████▀          ▀██▄ ▄██▀             ▀██▄ ▄██▀     ▄█▄     ▀██▄ ▄██▀                                       ██
   ▀████████████████████▀              ▀███▀                 ▀███▀       ▀█▀       ▀███▀      ▄███████████████████████████████████▀
     ▀████████████████▀
       ▀████████████▀
         ▀████████▀
           ▀████▀
║║


║║
.
.

║║
██
║║
.
.

║║
██
║║
.
║║


║║
mr_random
Hero Member
*****
Offline Offline

Activity: 868



View Profile
April 12, 2013, 11:30:24 PM
 #5

Something no-one understands except the creators lol.

            ▄▄▄███████████▄▄▄
        ▄▄█████████████████████▄
      ▄██████████████████████████▄
    ▄█████████████████▀▀▀██████████
   █████████████████       ███████
  ██████▀▀▀████████   ███   ██████   █
 █████       ██████   ███   ██████   ██
 ████   ███   █████   ███   █████   ███
█████   ███   █████   ███    ████   ████
█████   ███   █████   ████   ████   ████
████    ███   ████   █████   ███   █████
████   ████   ████   █████   ███   █████
▀███   ████   ████   ██████       █████
 ███   █████   ███   ████████▄▄▄███████
  █   ██████   ███   █████████████████
      ███████       █████████████████
     ██████████▄▄▄█████████████████▀
     ▀███████████████████████████▀
       ▀▀██████████████████████▀
           ▀▀▀████████████▀▀▀



Worldcore
▄▄
██
██  ██
██  ██
██  ██
██  ██
██  ██
██  ██
██  ██
██  ██
██  ██
██  ██
▀▀  ██
    ██
    ▄▄
    ██
██  ██
██  ██
██  ██
██  ██
██  ██
██  ██
██  ██
██  ██
██  ██
██  ██
██  ▀▀
██   
Sukrim
Legendary
*
Offline Offline

Activity: 2156


View Profile
April 12, 2013, 11:49:07 PM
 #6

And it's debt based like real money:

Ripple is a Bitcoin like P2P system to track debt between parties. The debt is transferable so you can "trade your debt"!!!

You can also be you own Ben Bernanke by agreeing with a friend that you owe each other $100.000,000. This debt claim can then be Broken up in shares and sold like Ripple XRP is. Instant money out of thin air like a bank!
Well, Compared to banks however users can decide for themselves which debts they trust and which they don't.

Try not accepting USD from Goldman Sachs debts... with Ripple you could do that!


It is really not THAT hard to understand: Just as you get "IOUs" from MtGox when you deposit (they promise you to transfer you some USD or BTC in the future) you could also get IUOs from someone else. Once you realize that money (e.g. withdrawal request) then you erase the debt. Ripple just lets you trade this debt quicker and easier while still allowing anyone to redeem it. MtGox for example even issues these codes that let anyone redeem some value, Ripple is basically the same. You don't trade BTC there, you trade BTC redeemable on a certain gateway.

https://bitfinex.com <-- leveraged trading of BTCUSD, LTCUSD and LTCBTC (long and short) - 10% discount on fees for the first 30 days with this refcode: x5K9YtL3Zb
Mail me at Bitmessage: BM-BbiHiVv5qh858ULsyRDtpRrG9WjXN3xf
interfect
Full Member
***
Offline Offline

Activity: 143


View Profile
April 13, 2013, 01:41:55 AM
 #7

Ripple is several things:

  • A distributed ledger that does not rely on proof of work. This is accomplished by having every Ripple client keep a list of ledger-signing "validators" that it trusts not to all be in on the same malicious scheme to defraud it. This lack of collusion is what the client relies on for trust instead. The wisdom of this is debatable, but the increased transaction speed isn't.
  • A system for exchanging IOUs, on top of that ledger.
  • A system for paying someone who does not trust your IOUs, by finding a path of people who trust each other's IOUs through which the value can flow. Hence the name "Ripple". If you don't like this, you can just pay people in IOUs from "Gateways", which are widely trusted people with automated systems allowing you to get or cash in IOUs. The biggest one is Bitstamp, which issues USD and BTC IOUs.
  • A distributed currency exchange, that works by trading IOUs from different issuers or in different currencies against each other. This is so that you can pay someone with your USD even if they only want BTC.
  • A virtual currency, called XRP, which is what Ripple transaction fees are denominated in. The Ripple creators originally gave themselves all the XRP, then handed out very large amounts of it (relative to the amount needed to pay for the operation of a Ripple address) to Bitcointalk users. It can be bought on Ripple's distributed exchange, but in order to do this you must already hold some XRP. As a spam protection measure, addresses that do not hold a certain "reserve" amount of XRP are unable to make transactions. The reasoning behind this is that some transactions, like deciding to trust someone's IOUs, need to have data persistently stored in the Ripple network, so maintaining this data has to be given a cost.
  • The Ripple people themselves, who currently (as far as I know) are still the only ones running any Ripple validation nodes. They provide web-based wallet software at Ripple.com, which does all the cryptography client-side, but which relies on marginally-trusted full Ripple nodes to actually interact with the Ripple network. They also still have a huge amount of XRP left, which they plan to dispense over time in order to fund development.

Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!