What is the Ripple Protocol (RIP Protocol)

What is the Ripple Protocol Editor’s note: This article is from Lianneican (IDlianneican), authored by Referendum Jun, authorized by Odaily Star Daily for reproduction.

Blockchain technology and the cryptocurrency field are gradually maturing. According to CoinMarketCap statistics, the Ripple Protocol currently has a market value of over 30 billion US dollars. So, what is the Ripple Protocol? What changes can it bring to digital payments? Let’s take a look at relevant content in this area. The exchange between Ripple and XRP is a catalyst for the rise in XRP prices, and xRapid conducts transactions through this mechanism, thus generating value exchange. Although there are differences in the use of these two assets at first glance, both are very important directions for development.

Because XRP is a digital token issued based on the Ethereum blockchain, their prices fluctuate greatly; but if you want to conduct a new cross-border payment business, you need to use mainstream assets such as ETH or LTC. Therefore, the same is true for XRP because these assets have a certain market demand.

However, the Ripple Protocol is actually a decentralized solution. Its operation is not defined to become a trustless market or an intermediary institution, but adopts an open-source, transparent, and auditable technical framework as the foundation. This technical framework allows businesses to create their own business models and achieve the automated execution of their goals without affecting other applications or financial products.

However, despite some improvements in practice, there are still some limitations in practical implementation. For example, Ripple does not support Bitcoin, Ethereum, and some other smart contract-based assets. At the same time, due to the high transaction fees of xCurrent and XRP, users cannot obtain the funds they want.

In addition, there are many problems, such as lack of liquidity and security. For example, in most cases, exchanges do not have sufficient capital to support transactions; the lock-up period for transactions is long, and Ripple’s platform is also difficult to keep up with, and it takes time to resume operations; if customers want to send their money out and receive payment on the exchange, they need to pay high fees, which may hinder users from entering the market, restrict their transfer speed, and reduce risks, and so on.

RIP Protocol

The RIP protocol is a cross-chain aggregator initiated by the UK decentralized organization Ribbit Capital. This protocol helps achieve the programmability of rip tokens by providing a new asset type: rToken, while providing users with a secure, efficient, and transparent choice for portfolio management, thereby benefiting the entire ecosystem from the services and products provided by the Rip protocol, such as exchanges and various DeFi projects, etc. Currently, the RIP protocol has received investment from Hypersphere Ventures, Coinbase Ventures, DFG, Fundamental Labs, and Polygon Studios.