Comments on: Can Ripple credit routing develop into an actual currency?

By: Ryan Fugger

Ryan Fugger — Fri, 27 May 2011 14:36:03 +0000

Thanks for the post Sepp. I think what Ripple really needs is a marketplace where users can discover and connect with each other. I’m working on integrating one into the next version of Ripplepay, but until then, check out http://ripplexchange.com.

By: KLP

KLP — Fri, 27 May 2011 13:18:30 +0000

I wouldn’t say that Ripple competes with Bitcoin. Ripple works on the premise that the IOUs that people exchange with it eventually get settled. People can settle those debts however they agree to do so. For people who wish to settle those debts with bitcoins, Ripple would actually compliment Bitcoin.

Although bitcoin transactions happen relatively instantaneously, recipients have to wait for nodes to verify each transaction. Ripple can help people avoid this caveat by allowing buyers to pay for things with a simultaneous payment over Bitcoin and Ripple. As soon as the transaction on the Bitcoin network gets enough confirmations, the Ripple debt would debt would get settled. As such, vendors wouldn’t have to trust buyers for as long as they would using Bitcoin alone. The software doesn’t exist for such transactions yet, but the protocols certainly allow for it.

By: Matthew Slater

Matthew Slater — Thu, 26 May 2011 10:00:19 +0000

Ripple is a credit clearing system, not a currency per se.
In theory it can denominate the credit at a different currency at every link, if necessary, and the exchange rates are just part of the trust system.
So if A owes C 1 bicycle, that can be expressed as
A owes B 100kg of sugar, and B owes C 20 packets of cigarettes.

The real problem with Ripple is strategy. Currency geeks have been talking about it for years, but there’s nothing for the public to use, and zero benefit until the network is dense enough. Ripple needs to ride another network!