Participants And Their Roles In Ripple Crypto Project
It is a well known fact that a crypto proposal called Bitcoin was initially a digital financial project. It is intended to substitute real money in order to support funds transactions without key banking features. These features are centralization, personal data sharing, assets tracking and others.
Since then, many other projects were proposed. These projects are of different nature:
- Some of them are based on the Bitcoin original proposal and follow the same path.
- Others are enhancing the Bitcoin proposal with different security implementations.
- Some part of projects uses the standard approach but without a financial background. Their examples concern charity or similar issues.
- Many projects introduce the development of basic blockchain. These are Ethereum, EOS, NEO, and alike.
- A small group of developers decided to apply significant changes to the blockchain structure and surrounding elements. IoTA and Nano are the best known representatives of this group.
- Finally, some projects decided to evolve in banking and similar areas. Those made several steps back from the initial proposal ideology, still they are based on blockchain.
The last group has an interesting representative that has grown up very fast. This is the Ripple project.
Ripple General Information
The Ripple network is intended to support worldwide financial transfers. It is stated to be more efficient than the modern financial infrastructure because it unites different institutions, banks, companies, and other participants in order to support assets flow. There are several ways to join the Ripple network with different software required in every case.
According to the official website, there are three types of software required to join the network:
- The simplest type of a client that can contact the network is called xVia. With this program, a participant is able to use a standard interface for money transfer. xVia has API stated to be simple enough for all people willing to join the network. Attachments are available for various payments support.
- The next program called xCurrent is developed for enterprise users. It is also an end-of-line client type but has a higher complexity. It allows banks to track payment details with high reliability.
- The last solution is called xRapid. This is key software which connects standard assets with the Ripple network. Using this program allows changing the asset type from standard to XRP (the Ripple native currency) and vice versa.
Talking about options available for a particular participant, we can decrease their number down to two. As it is stated in the researches and explanation articles, it is possible to be either an intermediator or an end user.
Development pages explain the Account concept. This concept has many similarities with Bitcoin. It uses the Base58 encoding, contains balance and address.
A significant difference lays in the server concept. Unlike Bitcoin in which no centralization exists, Ripple uses certain central nodes. These are servers simply holding the ledger or holding it and supporting the consensus protocol at the same time.
Ripple is a good example of how different the same idea developed by various teams can be. Comparing it with Bitcoin, we can see many similarities between them, still differences are strong. As a technology, Ripple is interesting in all aspects. We will discuss some of them in our next articles.