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What is Ripple? | The Ultimate Beginner’s Guide

What is Ripple

Ripple is a distributed open source internet protocol that facilitates a real-time gross settlement system (RTGS), currency exchange, and remittance network. Ripple is most often used by banks and other financial institutions to fortify their operational infrastructure. According to the Ripple website, they are the world’s only enterprise blockchain solution for global payments. The name…

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Republished by Plato



Ripple is a distributed open source internet protocol that facilitates a real-time gross settlement system (RTGS), currency exchange, and remittance network. Ripple is most often used by banks and other financial institutions to fortify their operational infrastructure. According to the Ripple website, they are the world’s only enterprise blockchain solution for global payments.

The name Ripple refers to three things: Ripple Labs (the company that oversees the development of Ripple), the Ripple Transaction Protocol (RTXP), and the network’s native cryptocurrency, XRP, or simply Ripples.

We’ll cover each of these components in the following topics:

Ripple’s story goes back to 2004 when Ryan Fugger, a web and decentralized systems developer, was working on a local exchange trading system in Vancouver. His goal was to develop a decentralized monetary system that would allow people to create a medium of exchange for whatever purposes they saw fit. He eventually launched the first iteration of this idea with

In 2012, developers Jed McCaleb and Chris Larsen approached Ryan Fugger with their idea for a digital currency. The system would rely on transactions verified by a consensus process among members on the network, instead of the mining verification method used by Bitcoin and many other cryptocurrencies.

After deliberation with McCaleb and others within the Ripple community, Fugger decided it was best to allow McCaleb and Larsen to take over Ripple. Following this decision, McCaleb and Larsen co-founded OpenCoin.

From there, OpenCoin immediately began working on the Ripple protocol (RTXP) and the Ripple payment and exchange network. The company received angel funding from several different venture capital firms.

Things were looking great for OpenCoin, but less than a year after its founding, McCaleb left the company. On September 26, 2013, OpenCoin officially rebranded themselves as Ripple Labs, Inc. and decided to become fully open-source as they released the peer-to-peer full node Rippled. By becoming open-source, the Ripple protocol was now viable independently from Ripple Labs. While they can and still do lead the development on the network, the Ripple network technically does not need the company in order to remain active.

The next few years would prove difficult for Ripple, as they received a $700,000 fine from the US Treasury’s Financial Crimes Enforcement Network (FinCEN) for “willful violation of the Bank Secrecy Act by acting as a money services business without registering with FinCEN.”

By corporatizing themselves, Ripple Labs exposed themselves to government regulation in a way that some other cryptocurrencies are safe from. Bitcoin, for example, is not backed by a corporate entity and leaves any sort of regulatory liability on the users of the network rather than a centralized group.

After their run in with FinCEN, Ripple obtained a virtual currency license from the New York State Department of Financial Services. This allowed Ripple to continue business as usual and Ripple became only the fourth company to hold a BitLicense, or a business license of virtual currency activities. Now that Ripple was a fully licensed and recognized virtual currency firm, they were able to continue operation.

By this point, Ripple had been working on several Ripple protocol projects and the shift away from a simple peer-to-peer currency had begun. The protocol had been adopted by a growing number of financial institutions as an alternative remittance option for consumers. Remittance refers to a transfer of money by a foreign worker back to their nation of origin.

This shift was seen as an opportunity by Ripple’s CEO Chris Larsen as he said in 2014,

“…we think that the bigger opportunity is not just to create another digital currency — there are plenty of those — but rather to use that technology as a way of building a settlement system with no central operator.”

Ripple began collecting partnerships with major financial instructions around the world. Companies like American Express, BMO Financial Group, the Royal Bank of Canada (RBC), and many others have identified Ripple as a means to bolster their operations. Some see it as a way to fight back against other cryptocurrencies often viewed as direct competitors to banks.

Ripple Partnerships

Those who consider their investments in digital assets as a means to insulate themselves from the corruption and general failings of the traditional banking system often view Ripple with distrust as it is clear that Ripple has aligned with their perceived enemy.

That being said, Ripple is seen as a safe entry point into crypto investing by some simply because of its banking utility. Many digital currencies claim to have world changing technology with not much to back up their claims. Ripple on the other hand, has proven utility and the trust from the banks has drawn the attention of traditional investors and large sums of money.

The Ripple Protocol Consensus Algorithm is the title of a white paper published by Ripple Labs in 2014. The paper addresses failures in traditional transaction systems and distributed payment systems like blockchain-based cryptocurrencies.

In contrast to these other cryptocurrencies, the Ripple protocol uses a common shared ledger, or distributed database, and operates with a consensus protocol to validate transactions and account balances on the network. This differs from the typical proof-of-work system used by Bitcoin and other blockchains. Proof-of-work requires computers connected to the network to act as miners, where the computing power of their hardware is used to validate and compile ledger entries, earning rewards when blocks are completed.

The consensus protocol of Ripple validates transactions in a way that improves the overall integrity of the system to prevent double spending. Distributed nodes on the network confirm transactions by participating in a poll that determines the majority vote on whether the transaction was carried out properly. For example, if you had 50 XRP in a wallet and you tried to send the entire balance to multiple addresses, the validators on the network would be polled to determine which transaction input occurred first. Only the first input would be recognized and completed.

XRP is the native currency used on the Ripple network, not unlike Bitcoins or Ether on the Ethereum network. However, XRP, in contrast to the above coins, is primarily designed as a liquidity instrument of the Ripple network. It acts as a bridge currency, meaning it can allow for transactions between two typically unrelated currency pairs.

There are other currencies on the Ripple network, but XRP is the only one free from counterparty risk, or the possibility that a counterparty will not fulfil their obligation to pay. This is a risk native to insurance policies, bonds, or other contracts.

During the development of Ripple, it was determined that there would be 100 billion total XRP to be introduced into the market. Of the 100 billion created, 20 billion were retained by the founders of Ripple Labs. XRP are divisible by up to 6 decimal places. The smallest unit is called a drop with 1 million drops totaling 1 XRP.

Suggested Reading Why is Ripple so cheap?

Ripple is designed to facilitate fast, seamless transactions between banks, payment providers, corporations, and digital exchanges. The network utilizes multiple instruments, like XRP, to complete transactions that are typically slow and costly.

XRP can act as a bridge currency between other currencies and assets. It allows for the open exchange of fiat and cryptocurrencies by creating liquidity without the need to increase your holdings of liquid assets.

One way this would prove useful compared to traditional banking would be their use of nostro accounts. A nostro account is an account in which a bank holds a foreign currency in another bank. Most of the large commercial banks of the world have nostro accounts in every country that uses a convertible currency.

Ripple eliminates the need for these accounts because instead of holding all of these currencies in reserve, you can simply hold an amount of XRP and complete foreign exchange transactions as needed without all of the added accounting measures.

Perhaps the most important feature of performing business transactions with Ripple is that it is nearly instantaneous. Everyone knows the struggle of receiving a check and waiting for it to clear; standard transactions can take days to complete. Ripple transactions, on the other hand, can be initiated and verified in seconds, and that includes foreign exchange processes that are even more costly and time-consuming.

Ripple is one of the most polarizing matters in the cryptocurrency community and it all stems from one concept. Decentralization.

Decentralization is the majority goal of blockchain developers. They distribute decentralized ledgers so that no central force can impose undue influence on the network and its users. Ripple is often accused of being a centralized cryptocurrency for three reasons. Ripple Labs is holding 20 billion XRP, they control the non-circulating total of XRP in addition to that 20 billion and they have solidified themselves as the most trusted validator on the Ripple network.

In the XRP section of this guide, it is mentioned that Ripple Labs created 100 billion XRP. This is already a deviation from the norm as cryptocurrencies are typically created through mining by users on their network. The Ripple creators then decided to retain 20 billion XRP for themselves.

Now this is obviously controversial as it gives just a handful of people 20% of the entire supply of a currency. On an open market, these few massive holders hold incredible power. They could theoretically dump their holdings and crash the price.

Not everyone sees this as a problem though. Supporters consider the retention of Ripple by its creators as no different than founders of a company holding a certain number of shares when their business goes public.

Nevertheless, some of the Ripple founders have agreed to slowly sell their holdings of XRP at a careful rate over several years in order to add stability to the market. Some of their holdings have also been donated to worthy causes.

This leads us to what happened to the other 80 billion XRP. As of the time of this writing, over 39 billion XRP are in circulation. With the majority of the currency in the hands of the company that created it, some believe this makes Ripple Labs too powerful in the financial ecosystem it created. Crypto markets are not mature and prices can fluctuate wildly when large holders decide to buy or sell holdings.

Perhaps the biggest concern Ripple opponents have with the controversial cryptocurrency is its role in maintaining the network. Ripple Labs is the primary validator on the Ripple network, meaning they could potentially do anything they wanted to their distributed ledger. As mentioned above, it is theoretically true that the Ripple network could continue operating without the control of Ripple Labs, but at the moment, they hold a monopoly on its processes.

Ripple has recognized these criticisms, however, and is working on a plan to implement a decentralization strategy. They are encouraging additional validators to join the network, leading them away from a monopoly on the system. If these additional validators are free from the control of Ripple, then over time the system could become truly decentralized and the network could upgrade and evolve as the community sees necessary.

Although those decentralization strategies are official statements, Ripple critics remain skeptical. Banks are seen as the enemy in this metaphorical war, and Ripple has chosen its side.

Even though XRP is markedly different from most digital assets in terms of technology and usage, it can be purchased on many of the world’s popular cryptocurrency exchanges.

Check out our guide step-by-step on how to buy Ripple XRP here.

There are many options for storing your XRP after you acquire it from an exchange. Digital assets traded on exchange will be stored in their hosted wallets and they belong to you, but it is not a good idea to leave your funds in an exchange’s wallet, as there have been instances of hacking in the past, most notably the Mt. Gox hack that resulted in about 850,000 Bitcoins being stolen.

While Bitcoin wallets are free, Ripple wallets require 20 XRP to hold your wallet address. Because of this, it is advisable to store your XRP on a single wallet rather than across several.

One of the best options for XRP storage is a hardware wallet called the Ledger Nano S. Hardware wallets are often considered to be one of the most secure methods of storing your cryptocurrencies, and the Ledger Nano S supports XRP along with a number of other coins.

For our comprehensive guide to the best XRP wallets, click here.

Ripple is lumped in with the thousands of cryptocurrencies because of similar underlying technologies and financial implications, but it is something that is fundamentally unique. By focusing on partnerships with banks and major corporations, Ripple is on a different path than that of Bitcoin, Monero, or other projects that are built around the idea of disruption. Ripple isn’t trying to disrupt banks, it is trying to give the banks a fighting chance against the wave of cryptocurrencies gunning for them.



ETH Developers Calculated How To Defuse The Difficulty Bomb

Republished by Plato




ETH developers calculated how to defuse the difficulty bomb because if they leave it untreated, they will slow down the network as we can see more in our Ethereum news today.

Ethereum’s encoded difficulty bomb is set to explode this summer and James Hancock as well as Tim beiko said that the ETH developers calculated the time needed to delay the bomb and this could the last time the developers need to take that action. Ethereum developers agreed on Friday how to delay the difficulty bomb ad if that is left untreated, the entire network could be slowed down. The difficulty bomb is an old piece of code that makes mining on ETH slower and less profitable over time by increasing the lag between the production of blocks.

Ethereum 2.0 switches the network from proof of work as a way of validating transactions with powerful mining computers to Proo of Stake which rewards the ones that pledge the coins to the network. It takes an average of 13 seconds to mine a block on ETH right now and without delaying the bomb, it could take more than 20 seconds to validate the block by the end of the year. Ethereum developers agreed on how many blocks were quite necessary to delay the bomb until December. The calculation for the delay was proposed by the ETH core developers James Hancock as he said:


“The bomb’s always there, and we defuse it by turning the blocktime back just for the bomb.”

block time
The block time chart on Etherscan. Annotated by James Hancock for Decrypt.

He later said that the proposal will delay the bomb by 9,700,000 blocks. Tim Beiko, the ETH core developer also said that the developers dismissed a proposal to delay the bomb next spring but that won’t be necessary. The developers expected that by December, the network will update to allow the ETH 1.0 the network that relies on PoW to communicate with ETH 2.0 as the new network relies on PoS and this is known as the Merge:

“If the Merge is ready by December, we won’t need to do anything about the bomb because we will move away from mining entirely.”

If the merge plans remain unimplemented, the Shanghai fork is expected to go live and will delay the bomb once again. The Bomb has been delayed three times so far.

DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]

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VeChain price prediction: VeChain prepares to move higher?

TL;DR Breakdown VET retests 0.618 Fib retracement level. Closest major resistance at $0.22. Closest support at $0.16. Today’s VeChain price prediction is bullish as the market continues setting higher lows over the past days in preparation for a push to the upside next week.  The overall market trades in the red today as Bitcoin has […]

Republished by Plato



TL;DR Breakdown

  • VET retests 0.618 Fib retracement level.
  • Closest major resistance at $0.22.
  • Closest support at $0.16.

Today’s VeChain price prediction is bullish as the market continues setting higher lows over the past days in preparation for a push to the upside next week. 

VeChain price prediction: VeChain prepares to move higher? 1
Cryptocurrency heat map. Source: Coin360

The overall market trades in the red today as Bitcoin has lost almost 2 percent, while Ethereum trades with a 5 percent loss. Solana (SOL) is one of the best performers as it trades with a gain of 15 percent. Alternatively, Polkadot (DOT) is among the worst performers, with a loss of almost 9 percent over the last 24 hours.

VET/USD opened at $0.172 today after a bearish push yesterday. Over the past hours, VET/USD retested the local high at $0.19, from which the market moved lower once again and currently looks to set another higher low.

VeChain price movement in the last 24 hours

The VET/USD price moved in a range of $0.1701 – $0.1925, indicating a moderate amount of volatility. 24 hour trading volume has increased by 9.5 percent, totaling $1.7 billion. The total market cap trades around $15.5 billion, resulting in a market rank of 17th.

VET/USD 4-hour chart – VET consolidates in an increasingly tighter range over the past days

On the 4-hour chart, we can see bulls picking up any further selling pressure around the $0.175 mark, indicating that another slightly higher low will be set.

VeChain price prediction: VeChain prepares to move higher?
VET/USD 4-hour chart. Source: TradingView

Overall the market continues retracing from the $0.25 swing high set on the 7th of May. A total loss of 35 percent was seen over several days, indicating that further selling pressure is likely exhausted.

Currently, the VeChain price action builds a base from which to move higher over the next week. Both a higher low and a lower high were established over the past 24 hours, indicating an increasingly tighter range. Therefore, once VET/USD breaks above the $0.19-$0.195 mark, we expect the market to rapidly move forwards to the next major resistance target around $0.215 – $0.22. From there, bulls will likely pick up momentum and push the market towards the current all-time high resistance around $0.27-$0.28.

Alternatively, Vechain cannot move any higher and breaks below the current local swing lows around $0.17, we should see another push lower over the next 24 hours. In this scenario, VET/USD will likely continue moving lower next week towards the next major support area around $0.12-$0.13.

VeChain Price Prediction: Conclusion 

VeChain price prediction is bullish as the market continues to consolidate in an increasingly tighter range after a sharp drop earlier this week. Therefore, we expect VET/USD to push higher early next week to regain some of the loss.

While waiting for the Vechain price action to reverse, read our guides on other great altcoins – Monero, Ethereum Classic, and Ripple.

Disclaimer. The information provided is not trading advice. holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Bitcoin Price Analysis: BTC Breaks Long Term Trend As Tesla Ditches It

Republished by Plato




Bitcoin has broken out of a long 3 month range of $10,000. After Elon Musk announced Tesla will no longer be accepting BTC due to environmental reasons, BTC broke its major support of $55,000 and quickly fell over 15%. BTC is now is now in scary waters. 


Merchant Token

While looking at the chart, BTC has broken a long term trend that has been held for nearly 6 months. This is not a good sign as there is much FUD spreading about Bitcoins environmental impact. BTC must hold major support range of $46,500-$48,000 or we can experience a large fall to $40,000. As of now, the 150MA has held the price of BTC as it touched this moving average for the first time in 6 months. 

Bitcoin Price Analysis: BTC/USDT 1 Day Chart


If BTC can break above $48,000 and hold, there will be a decent revival to $51,400. In the case that BTC holds this resistance, next up is $54,400. BTC has grown over 1000% in a year. With this being said, there is a good chance more downside might occur before BTC resumes a bullish uptrend.

While looking at the Stochastic RSI, we can see that strength has reset to oversold levels. If the strength can bound above 30, expect a revival to minimum $51,400. The regular RSI also confirms a small bullish upswing as it has printed a bullish divergence. This occurs when price makes a Lowe low but RSI makes a higher low. 

BTC intraday levels 

  • Spot rate: $48,100
  • Trend: Bearish
  • Volatility: High
  • Support: $46,400
  • Resistance: $48,000

To keep track of Crypto updates in real time, Follow us on Twitter & Telegram.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.

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