What is Ripple?
Ripple is a financial technology company that has built an open source developer platform enabling developers and entrepreneurs to build real-world payment solutions. Ripple manages different companies to further its mission of financial inclusion. Its values include the creation of a more inclusive, participatory and sustainable global financial system. Their vision is “to enable a world where value moves as seamlessly as information flows today—an Internet of Value”.
Ripple is a financial technology company that has built an open-source development platform enabling developers and entrepreneurs to build real-world payment solutions. Ripple manages different companies to further its mission of financial inclusion. Its values include the creation of a more inclusive, participatory, and sustainable global financial system. Their vision is “to enable a world where value moves as seamlessly as information flows today—an Internet of Value”.
The Creation of Ripple
In 2004, Ryan Fugger created Ripple with the idea of designing a secure money transfer system (via a digital registry) without going through the banks which he named RipplePay.
His vision was excellent at the time, but, since it was not secure enough, this endeavor was not yet ready for mass adoption. It should be noted that in 2004 the blockchain and Bitcoin had not yet been created.
Ripple & XRP
XRP is different from Ripple because the XRPL is an open source blockchain and Ripple is a fintech company. The company is not associated with the decentralized XRP Ledger or the XRP cryptocurrency. On their website, Ripple states that XRP “is an open-source, decentralized digital asset built for payments”.
It is necessary to distinguish Ripple and XRP, which are 2 different entities:
- Ripple is a company that provides software/products to financial institutions.
- XRP is a cryptocurrency used in some Ripple products.
A Decentralized Financial Payments System
In 2011, Jed McCaleb, a successful entrepreneur, joined Ryan Fugger at Ripple, together they created a decentralized money exchange system.
At that time, Bitcoin already existed but their idea was revolutionary because cheap micro-payments from one person to another did not exist yet.
Their vision was to change the world of finance into that of the Internet of Value.
Acquisition of Ripple and Major Events
In 2012, Jed McCaleb bought Ripple from Ryan Fugger with Chris Larsen. Together, they rename Ripple “OpenCoin” and make a decision that will change everything; they decide to work with the banks to improve their transaction system.
Departure of Jed McCaleb
In 2012, Jed McCaleb together with Chris Larsen bought Ripple from Ryan Fugger. Together, they renamed Ripple to OpenCoin and made a decision that changed everything; they decided to work with the banks to improve their transaction system.
In 2013, following the departure of Jed McCaleb, OpenCoin became Ripple Labs, before being renamed Ripple again in 2015.
Starting the Machine
In 2015, the interledger was designed by Stefan Thomas (former Technical Director at Ripple) and Evan Schwartz (Software Architect at Ripple) to offer a simple payment solution.
That same year, Ripple began canvassing the institutions.
The company’s main objective was to revolutionize cross-border payments managed by SWIFT.
Simply put, Ripple’s technology does what SWIFT does, but faster, cheaper, and more secure.
Ripple Incorporates ISO 20022
In 2020, the company joined ISO 20022, the global standard for cross-border payments. This international standard integrates payment infrastructures into the modern world. The SEC* filed a lawsuit against Ripple at the end of 2020, the SEC laid charges against Ripple and two of its executives .
*The SEC is the US financial market authority. Its role is to monitor financial markets and issue sanctions in the event of non-compliance with the rules it enacts.