Ripple is not a scam - and you may be making yourself vulnerable to actual scams

[hypostatization]

Ripple is misunderstood.

Centralization is a threat to Bitcoin and most Alts. Ripple is a complementary system for all currencies. It battles against centralization, and in entirely different ways than most cryptos. It targets eradicating centralization issues at different levels, with its own unique decentralization model. Yet, most people are unaware, misinformed---or have vested interested in attacking Ripple.

MasterCoin, NXT, eMunie, and Monetas are all systems attempting to solve similar issues. They are all worth taking the time to evaluate and understand. I do not claim any one system solves all major threats we are facing today.

Why are so many misinformed?

http://ripplescam.org/ (inaccurate and outdated)

In almost any discussion this site comes up, despite it offering no real value. Understanding why Ripple is important means understanding major issues threatening most crypto currencies today.

When you trade on almost any exchange, you are embracing centralization. Likewise, the same is true for most Bitcoin payment systems. Ripple is derided for its decentralized IOU system, yet it is designed specifically to mitigate the threat posed by centralized exchanges and payment systems. In using those systems, you are embracing closed IOU systems. All of the value of crypto transactions is gone at that point. Many have been bitten by the scams that this has allowed, and the fallout from ineptitude of the operators of many of these services.

https://inputs.io/ is the poster child of these threats. Scam or hack? Ripple is attacked, in part, because it threatens the business model of closed centralized exchanges and payment systems. It is important to note that the author of ripplescam.org is, in fact, the same person responsible for inputs.io, along with centralized systems that have wreaked havoc on the community. TradeFortress is the perpetrator:

https://www.google.com/search?q=tradefortress

Why would he attack?

He had major interested in detracting from Ripple. Its model conflicts with his (and all other) closed centralized payment systems. In driving people away from Ripple to his centralized system, he cost trusting users dearly. An angry community is looking for him. His specific whereabouts are currently unknown. It is worth carefully evaluating all he has had to say about Ripple.

Everyone should read this conversation clarifying lower level misconceptions of the Ripple system:

https://news.ycombinator.com/item?id=6867324

Ripple is, in fact, open source:

https://github.com/ripple

It is leading radical new concepts that may be beneficial for all new currencies to consider:

https://ripple.com/wiki/Contracts

Ripple may or may not be the future---but it brings vital concepts to the table. They need to be considered for their individual merit. Decentralized payment and exchange systems are vital to the future of crypto currencies. Ripple does not need to replace any currency. Its system complements all currencies. It is not about Ripple vs. Bitcoin vs. your favorite crypto currency.

If you do not believe in Ripple, or Ripple Labs, then by all means fork the code. Create a system that aligns with your ideals. Create a new code base altogether---as Ripple alternatives like MasteCoin, NXT, Monetas, and eMunie are attempting. Dismissing Ripple and all concepts tied to Ripple disservices the future of crypto currencies.

Many of those who attack have vested interest, to drive their centralized alternatives. It hurts the community.

Scammers with vested interest in centralized systems abound.

Support decentralization.

[eon89]

So what you are saying is Ripple is a scam?

[Lethn]

In order to be able to trade in paper money you have to have a bank account, reveal your identity through government identification and you have to be registered as a company within a country that recognises the legitimacy of your company, therefore ripple is not decentralised.

[hypostatization]

In order to be able to trade in paper money you have to have a bank account, reveal your identity and you have to be registered as a company within a country that recognises the legitimacy of your company, therefore ripple is not decentralised.

False.

You can deposit crypto and trade for USD or any other paper currency.

[Nullu]

Ripple sounds wonderfully complicated and complex. I like POW crypto currency because it's elegant. Whatever Ripple is, it's not elegant.

[Thorgrim]

99.5% of all ripple is still held by Developers of Ripple.

Sounds pretty centralized to me.

[hypostatization]

Ripple sounds wonderfully complicated and complex. I like POW crypto currency because it's elegant. Whatever Ripple is, it's not elegant.

PoW leads the day, and is the most understood, discussed, and explained system there is. Ripple is still in its early days of adoption.

Ripple offers a lot---certainly---but I would maintain it is one of the most elegant and well conceived systems around.

[hypostatization]

99.5% of all ripple is still held by Developers of Ripple.

Sounds pretty centralized to me.

XRP is an infrastructure component. A small amount is destroyed with every transaction, to mitigate issues like DDOS attacks. It will be given away by Ripple Labs to spur adoption.

It is a single (and vital) component of the Ripple system, that supports the decentralized network---and allows for distributed transactions with all other currencies. XRP != Ripple. Ripple's decentralized benefits are (partially) enabled through it.

Note: while XRP cannot be mined, Ripple has undertaken an initiative to support the World Community Grid---similar to CureCoin and GridCoin:

https://www.computingforgood.org/

Ripple Labs is highly focused on distributing XRP, and has found a way to promote a great cause in turn.

[Nullu]

Ripple sounds wonderfully complicated and complex. I like POW crypto currency because it's elegant. Whatever Ripple is, it's not elegant.

PoW leads the day, and is the most understood, discussed, and explained system there is. Ripple is still in its early days of adoption.

Ripple offers a lot---certainly---but I would maintain it is one of the most elegant and well conceived systems around.

Bitcoin works because it's almost universally understood by the people who use it, even if only on a very basic level. I start reading about Ripple, and it all sounds good and clever and logical, but it puts me in mind of spaghetti code; all sorts of different ideas and concepts working together that it's not entirely clear what the system does. They may all be very good ideas, fantastic ideas even, but put enough good ideas together and you end up with unpredictable emergent behaviour. Maybe I'm biased as a programmer, but elegance to me should be one of the main goals for any POW, or even POS currency. To be honest I'm really not sold on POS at all. Not even POW with POS elements. I just think it does the opposite of what it claims.

[zoro]

yeap, computingforgood is very good move from xrp!
i wonder if this is the reason of #2 cap behind only BTC!
or are there other reasons as well?

[hypostatization]

Bitcoin works because it's almost universally understood by the people who use it, even if only on a very basic level. I start reading about Ripple, and it all sounds good and clever and logical, but it puts me in mind of spaghetti code; all sorts of different ideas and concepts working together that it's not entirely clear what the system does. They may all be very good ideas, fantastic ideas even, but put enough good ideas together and you end up with unpredictable emergent behaviour. Maybe I'm biased as a programmer, but elegance to me should be one of the main goals for any POW, or even POS currency. To be honest I'm really not sold on POS at all. Not even POW with POS elements. I just think it does the opposite of what it claims.

Also a programmer here. It is worth checking out the code. Since Ripple is still in its early stages, it is going to take a while for all of the concepts to be clearly distilled for mass consumption.

[hypostatization]

yeap, computingforgood is very good move from xrp!
i wonder if this is the reason of #2 cap behind only BTC!
or are there other reasons as well?

Ripple has performed well since November, largely due to Chinese adoption. Aside of early adopters, this went mostly unnoticed by the broader crypto currency community. It was off http://coinmarketcap.com/, but building steadily through November. Check the charts: https://ripplecharts.com/market/USD:Bitstamp/XRP

[Boldhead]

It's indeed a strong system compared to the must systems and altcurrencies that are trying to hold on!

Good post made hypostatization!

[Nullu]

Bitcoin works because it's almost universally understood by the people who use it, even if only on a very basic level. I start reading about Ripple, and it all sounds good and clever and logical, but it puts me in mind of spaghetti code; all sorts of different ideas and concepts working together that it's not entirely clear what the system does. They may all be very good ideas, fantastic ideas even, but put enough good ideas together and you end up with unpredictable emergent behaviour. Maybe I'm biased as a programmer, but elegance to me should be one of the main goals for any POW, or even POS currency. To be honest I'm really not sold on POS at all. Not even POW with POS elements. I just think it does the opposite of what it claims.

Also a programmer here. It is worth checking out the code. Since Ripple is still in its early stages, it is going to take a while for all of the concepts to be clearly distilled for mass consumption.

Often with complex systems such as this there tends to be a few good concepts that can be taken away that would benefit the community if applied in a different way, or if applied on its own without the additional functions. I'd be interested in looking into the code and getting a better understanding of how it all works. But even as someone who enjoys learning complex systems, it seems like a hard sell to me, and probably magic to someone who doesn't understand it at all. What worries me most about complex systems like this is that it's much harder to obfuscate flaws in the system, or loopholes.

[HairyMaclairy]

Ripple is misunderstood because no one can understand it.

If I want to receive $10,000 USD from Bitstamp as a money transfer I have to agree to lend them that amount at any time (and they can just take it without telling me). I can't think of any circumstances in which that would be a good idea.  Bitstamp is not a bank and is not FDIC insured.

At least when I deal with an exchange I choose when and if they get my money. 

[hypostatization]

Often with complex systems such as this there tends to be a few good concepts that can be taken away that would benefit the community if applied in a different way, or if applied on its own without the additional functions. I'd be interested in looking into the code and getting a better understanding of how it all works. But even as someone who enjoys learning complex systems, it seems like a hard sell to me, and probably magic to someone who doesn't understand it at all. What worries me most about complex systems like this is that it's much harder to obfuscate flaws in the system, or loopholes.

I agree about the general concern for complex systems, but have been consistently pleased by what I have digested. Everything points to development taken seriously---not a sole developer-rushing-to-market-effort. Also worth noting, on the code front, is their recent hire of a co-founder of nodejitsu:

https://www.nodejitsu.com/

[hypostatization]

Ripple is misunderstood because no one can understand it.

It will take time. Much like Bitcoin itself, it moves in a radical new direction.

[zerodrama]

Ripple is a scam. Has been, will always be.

[Boldhead]

Ripple is misunderstood because no one can understand it.

Once you start using it, it turns out to be pretty easy, even for a newbie like me

[luckygenough56]

No one can understand the foggy misleading purpose of mastercoin and ripple, so it will fail, simple as that. I will bet on Nxt. Period.