$XRP 101: The payments network that's changing Finance.
Here's everything you need to know about $XRP
A thread π§΅π
Here's everything you need to know about $XRP
A thread π§΅π
1. Traditional finance is outdated and broken.
Banks take a huge cut, payments take forever to settle, transactions fees are high and it incredibly convoluted, expensive and time consuming to send cross border payments.
Banks take a huge cut, payments take forever to settle, transactions fees are high and it incredibly convoluted, expensive and time consuming to send cross border payments.
2. Blockchain tech has an immense opportunity to disrupt this.
#Bitcoin and other cryptos have gained immense traction over the years.
Bitcoin allowed for a fast, global store of value. However, bitcoin has its flaws.
#Bitcoin and other cryptos have gained immense traction over the years.
Bitcoin allowed for a fast, global store of value. However, bitcoin has its flaws.
3. This led three bitcoin devs to create the $XRP ledger (#XRPL) in 2012. I
Instead of using a PoW consensus mechanism that relies on mining, they created a new consensus mechanism known as the XRP ledger consensus Protocol.
Instead of using a PoW consensus mechanism that relies on mining, they created a new consensus mechanism known as the XRP ledger consensus Protocol.
4. This new consensus mechanism has a couple of key properties:
- Everyone who uses the $XRP Ledger can agree on the latest state and which transactions have occurred.
- All valid transactions are processed without needing a central operator or having a single point of failure.
- Everyone who uses the $XRP Ledger can agree on the latest state and which transactions have occurred.
- All valid transactions are processed without needing a central operator or having a single point of failure.
5. - The ledger can make progress even if some participants join, leave, or behave inappropriately.
- If too many participants are unreachable or misbehaving, the network fails to make progress rather than diverging or confirming invalid transactions.
- If too many participants are unreachable or misbehaving, the network fails to make progress rather than diverging or confirming invalid transactions.
6. - Confirming transactions does not require wasteful or competitive use of resources
- These properties are sometimes summarized as the following principles, in order of priority:Β Correctness, Agreement, Forward Progress
- These properties are sometimes summarized as the following principles, in order of priority:Β Correctness, Agreement, Forward Progress
7. The XRPL has some cool features like escrow and payments channels.
Escrow represents traditional escrow accounts and allows users to send conditional $XRP payments.
Only when the conditions laid out are met, the $XRP in escrow is sent
Escrow represents traditional escrow accounts and allows users to send conditional $XRP payments.
Only when the conditions laid out are met, the $XRP in escrow is sent
8. Payment channels are a feature for sending "asynchronous" $XRP payments that can be divided into very small increments and settled later.
$XRP is the native currency of the XRPL.
$XRP is the native currency of the XRPL.
9. All accounts in the have freely send $XRP to each other, making XRP a great bridge currency.
All accounts must hold a minimum of 10 XRP as reserve. This is primarily done in order to protect the ledger from spam and constrain the growth to a level that can match the capacity
All accounts must hold a minimum of 10 XRP as reserve. This is primarily done in order to protect the ledger from spam and constrain the growth to a level that can match the capacity
10. The $XRP Ledger does not require mining and the consensus process does not require multiple confirmations for immutability, which makes the $XRP Ledger faster and more efficient at processing transactions than #Bitcoin and other top cryptocurrencies
11. When the XRPL was created, 100B $XRP was created. XRP earned through transaction costs is burnt, making XRP slightly deflationary.
Exchanges between non XRP currencies uses something known as auto bridging to happen. $XRP is used as an intermediate bridge currency.
Exchanges between non XRP currencies uses something known as auto bridging to happen. $XRP is used as an intermediate bridge currency.
12. This makes it way cheaper to exchange two currencies.
In late 2012, the founders of XRPL, formed a company known as #Ripple that was built on top of the XRPL.
Ripple was given 80B $XRP in exchange for building on top of the XRPL, a majority of which is out in escrow.
In late 2012, the founders of XRPL, formed a company known as #Ripple that was built on top of the XRPL.
Ripple was given 80B $XRP in exchange for building on top of the XRPL, a majority of which is out in escrow.
13. All assets other than $XRP can be represented in the XRP Ledger asΒ tokens. Accounts can create and issue tokens for users that are willing to hold them. Tokens can represent any value, other currencies, stablecoins.
XRPLβs goal is to provide a better alternative to bitcoin.
XRPLβs goal is to provide a better alternative to bitcoin.
14. It aims at transforming the archaic multi billion dollar financial system.
#Ripple is a payments solution built on top of the XRPL, focusing on cross border payments and has greatly accelerated the use of XRPL.
#Ripple is a payments solution built on top of the XRPL, focusing on cross border payments and has greatly accelerated the use of XRPL.
15. #Ripple is not trying to overthrow the existing financial system. Instead, Ripple is providing it with a better system.
Ripple is working closely with institutions and and other financial bodies and is aiming to bring them onboard a better system.
Ripple is working closely with institutions and and other financial bodies and is aiming to bring them onboard a better system.
16. For mass adoption, this is inevitable. The world of the future is not going to be completely decentralized, rather it is to have both decentralized and centralized realms.
#Ripple, is leveraging the decentralized XRP tech to better the broken traditional financial system
#Ripple, is leveraging the decentralized XRP tech to better the broken traditional financial system
17. To make things clear, #Ripple is a cross border payments system that sits on top of the XRPL.
RippleNet is their payments network that financial institutions use. RippleNet has a suite of products and services to assist their users.
RippleNet is their payments network that financial institutions use. RippleNet has a suite of products and services to assist their users.
18. The XRPL is the underlying blockchain that #Ripple sits on. It is open source, decentralized and permissionless. $XRP is the native currency for the XRPL.
While Ripple is a key player in the XRPL system, XRPL is bigger than just Ripple.
While Ripple is a key player in the XRPL system, XRPL is bigger than just Ripple.
19. The XRPL is completely decentralized. It makes use of validators and stock nodes.
Validators participate in the consensus process and validate transactions. Stock nodes protect the validators and store the history.
Validators participate in the consensus process and validate transactions. Stock nodes protect the validators and store the history.
20. There are 150+ validators and 900+ nodes. #Ripple only runs 6 validators and controls less than 4% of all validators.
For the XRPL network to reach consensus, at least 80% of the validators must agree, meaning that Ripple has no control over the XRPL ledger.
For the XRPL network to reach consensus, at least 80% of the validators must agree, meaning that Ripple has no control over the XRPL ledger.
21. Although Ripple owns a significant portion of $XRP supply, because XRPL does not use PoS consensus, it does not make XRPL centralized.
Control of supply does not play a part in decentralization.
Control of supply does not play a part in decentralization.
22. XRPL has a suite of features, including a dex and a growing ecosystem consisting of NFTs, gaming, etc.
XRPLβs DEX was the first ever DEX and XRPL was the first chain to allow tokenization of other assets.
XRPL is not just for banks, it is for anyone to build on top of.
XRPLβs DEX was the first ever DEX and XRPL was the first chain to allow tokenization of other assets.
XRPL is not just for banks, it is for anyone to build on top of.
23. Additionally, XRPL does not require as much power as PoW chains, making it one of first carbon neutral chains.
Hereβs how much energy XRPL consumes versus BTC and ETH in relation to Portugal.
Hereβs how much energy XRPL consumes versus BTC and ETH in relation to Portugal.
24. Accounts to follow for $XRP insights:
@BlackberryXRP @RipplePandaXRP @skipper_xrp
@XRPMichaelB @CryptoBull2020 @jungleincxrp
@xrpchiz @XRP_Shark @XRPArmyNews1 @Curtis_XRP @xrp334 @Bitforcoinz @XRPstreetTEAM @barrymcalpin @makotonohonto @MEGAMANXRP
RT would mean a lot!
@BlackberryXRP @RipplePandaXRP @skipper_xrp
@XRPMichaelB @CryptoBull2020 @jungleincxrp
@xrpchiz @XRP_Shark @XRPArmyNews1 @Curtis_XRP @xrp334 @Bitforcoinz @XRPstreetTEAM @barrymcalpin @makotonohonto @MEGAMANXRP
RT would mean a lot!
25. Accs to follow for $XRP insights:
@kevindixon @TheDustyBC @Ripple @arrington @Ripple_XRP1 @robxrp1 @MackAttackXRP
@XRP_OWL @XrpMr @RuleXR @stedas
@HaraldoXRP @WillyWonkaXRP @realXRPwhale
@XRP_Airdrops @KingRippleXRP @XRP_stuart
@boy_xrp @UniverseTwenty
RT would mean a lot
@kevindixon @TheDustyBC @Ripple @arrington @Ripple_XRP1 @robxrp1 @MackAttackXRP
@XRP_OWL @XrpMr @RuleXR @stedas
@HaraldoXRP @WillyWonkaXRP @realXRPwhale
@XRP_Airdrops @KingRippleXRP @XRP_stuart
@boy_xrp @UniverseTwenty
RT would mean a lot
26. I hope this was insightful, a retweet would mean a lot.
More $XRP insights coming your way, follow to stay updated.
Here are my past threads: notion.so
More $XRP insights coming your way, follow to stay updated.
Here are my past threads: notion.so
27. Thanks for reading my $XRP 101. If you found this useful, please retweet it π
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