Sure, we all log on to our online bank accounts, but they don't really let you take your money anywhere. Ripple will be supported by a rapidly expanding network of Gateways that will allow you to get money from your bank account onto the Ripple network, and from there, an unlimited number of financial options will be available to you.
You'll be able to spend your money with any merchant with a ripple account or with a bank account tied to a Gateway. You'll be able to exchange your currency for USD/EUR/CAD/GBP/JPY/BTC/whatever you want.
We'll finally be done with the archaic ACH network. $50 bank wire fees and 3% currency conversion fees will cease to exist. We have an Internet, why not use it to move money?
If you wanted something like Bitcoin but with different properties, different security, different inflation— an altcoin is the only way to get it.
Unfortunately, practically all altcoins have been almost identical to Bitcoin.
Instead of a proof of work decentralized consensus ripple depends on a consensus of _trusted servers_. In Bitcoin language ripple is distributed but not decentralized.
Then multiply that out by the fact that its native currency XRP was all pre-created and given to the founders and their org... people like to call Bitcoin a ponzi scheme, but policies like this make me wonder if Ripple isn't a joke designed to point out the comparative equality Bitcoin provides.
It might be more accurate to call it a paypal competitor but it retains the Bitcoin scalability challenge of requiring global synchronization, so its unlikely to be a great one.
.. group would like to take over the Ripple project and call their system "Ripple". They have offered me xx
for this, which would give them ownership of all Ripple software I've written...[and] ripplepay.com domains... I could continue my work independently, but I would need to give it a different name.
RTFA? Cool your jets bro...
I'm actually not sure of the necessity of XRP; since bitcoin, or any other currency can propagate across the network.
edit: it seems that such transaction fees are possible. Not sure why XRP is needed then.
Is there some forum like bitcoin.stackexchange where I can ask/read theoretical questions of Ripple?
Why do you like it? The ripple model depends on picking trusted servers which cannot be controlled by the same party/common interests. The system cannot automatically pick trusted servers because there is no electronic way to determine independence, except the way that it currently works— fiat of the developers: they hardcode the servers.
To me it seems that when encountering the fundamental problem bitcoin solved, "How do you achieve a fair consensus when its cheap to make sibyls?" their response was to completely punt on the issue.
There are simple ways to gather lists of likely independent servers. For example, agencies you trust could publish such lists. You could pick three such lists and only trust organizations that appear on two of them.
And if you betray that trust, it will nearly always be easily detectable in an automated way. At that point, everyone will stop trusting you and you'll be back at zero. By contrast, if you accumulate 51% of the mining power, there's no easy way for people to take that away from you and make you start over.
This isn't a procedure, it's a hand-wave. How do the agencies make their lists? And why should I trust them? If I can trust the agencies, why don't I just have them process all the transactions and then dispense with the inefficient global consensus stuff? What happens when courts order the agencies to direct people to processors who seize particular funds or block particular traffic? When the agency servers are hacked?
That is all you were after right? Posts by david-schwartz about ripple?
I still didn't quite get how does this work but the fact that the technology enables you to do it besides the fact that it has its own currency is pretty interesting.