Ripple

Ripple is a part of the a peer-to-peer network protocol for making decentralized Ripple payments between users on different computers. The newest version is a fully decentralised system with no central server, the original version is still available at classic.ripplepay.com. One of the main developers of Ripple is Jed McCaleb who wrote eDonkey2000 and set up MtGox, the largest Bitcoin exchange - some people even believe that Jed may be the true identity of Satoshi Nakamoto for example [1].

Derived from LETS

The original inspiration for Ripple was LETS, a mutual credit system where users issue new money for each other when it's needed to make a transaction. In LETS, however, users issue new money on behalf of the entire community of users and are not made directly accountable for their decisions. Ripple was originally intended to be an alternative currency system where instead of a single communal LETS, each user would operate their own mini-LETS, which other users could subscribe to at their own peril. The trick then is to route payments through this potentially complicated network of personal LETS currencies.

• Detailed description of Ripple concepts

Ripple ideals

Interpersonal Ripple is in many ways an ideal. Instead of depending on labour-intensive legal frameworks to support formal institutional trust, interpersonal Ripple could build on existing informal trust relationships within communities. This should be both cheaper, and allow for a monetary system that better incorporates human and community values.

It would also be more democratic, as it would not depend on central authorities to regulate the money supply and in so doing direct the economy. Deciding when more money is needed for an entire nation involves not only a problem of data collection and analysis, but a whole set of value judgments, and the values of those making the judgements may not always agree with those of the citizenry. If everyone was responsible for issuing their own money, not only would the number of brains gathering and processing economic data multiply million-fold, the values underlying collective monetary policy would accurately reflect all participants in the economy.

Upgrade from LETS

If you already use a Local Exchange Trading System (LETS), this page will tell you how you and your community can upgrade from your current system to Ripple. This will allow you to get the same functionality you already had, plus a convenient set of tools for using and managing your accounts, plus a whole new world of P2P finance.

Ripple news & views

• 2013-04-17: Interview with Jed McCaleb, inventor of the Ripple protocol and co-founder of OpenCoin
• 2013-04-11: Introducing Ripple, a Bitcoin Copycat
• 2013-04-11: Bitcoin rival Ripple looks to make waves - a smaller, early-stage player in digital currencies secures its first round of angel funding

See also

• money
• Ripple implementations
• google groups discussion a lively and informative discussion group on ripple-related topics
• Introduction to Ripple for Bitcoiners
• xrpTrader - get your ripples here starting at 0.9BTC for 50K (Apr 2013)
• Ripple Union - gateway between the Ripple.com and Classic Ripple networks