Ripple Lab does not use the (blockchain) and mining operations like Bitcoin or Ether, but using the "Distributed ledger". Everyone thinks this is an innovation. In fact Only institutions which approved by them can be used as billing nodes. Therefore, its operation is similar to what we often call "private chain" or "fake chain". It is to find a group of people to do the accounting. In fact, this is the same as using a server. It doesn’t make any difference to keep accounts. It’s just to use some proper terms to name. Now it seems that it never bluffed the Securities and Exchange Commission (SEC), so ripple was sued. The problem is, maybe this is OK.it bluffed the judge After all, judges certainly don't understand this kind of "financial innovation," and it is still unknown how the judge will decide.
Ripple Lab’s plan is to hope that Ripple (XRP) will become the usage of all transactions. The current use of Ripple currency for cross-border remittance transactions is fast, it only takes 3 seconds on average, and the transaction fee is almost zero. The average transaction fee is As long as $0.00001, many people think that this is because of the use of some magical blockchain technology. In fact, the most important reason is that payment and settlement with Ripple can bypass all current supervision mechanisms without complicated manual verification procedures, and there is no A bunch of intermediary platforms, so not only the transactions are fast and the fees are low, in fact, it can be done without a blockchain, but an ordinary transaction server can be set up. It is just a matter of disagreement with the financial authorities of all countries in the world!
You may find it difficult to understand the above text description. Let me draw a schematic diagram to illustrate the operating concept of XRP currency: Ming in Taiwan wants to remit NT$300,000 to Mei in the United States, so he can buy it from the issuing unit He entered 10,000 xrp . In fact, he didn’t get anything. He just paid for 10,000 XRP coins in the mobile app (APP) (each NT$30). Next, Ming Use the mobile app (APP) to send money to mei in the United States, and mei can exchange it for US$10,000 after getting XRP coins! This process is like sending a text message from Taiwan to a friend in the United States. Theoretically, it can be completed in an instant, because transaction records need to be synchronized to several distributed ledgers, so only 3 seconds is reasonable.
The problem is that if you get 10,000 XRP coins in the United States and exchange it with the issuing unit for USD 10,000, the issuing unit will have to bear the exchange risk even if it charges a handling fee. Isn't it the result that you may lose money? Therefore, what the issuer has to do is to find a way to operate the market and convince everyone that XRP coins can UP in the future, can replace US dollar transactions, and can be free of handling fees for cross-border remittances. In short, it will rise in the future, so you must invest quickly. Therefore, in the United States Another investor, LEE , took out US$10,000 and bought 10,000 coins in the hands of mei. In the end, MING in Taiwan successfully sent US$10,000 to Mei in the United States. Investor LEE happily held 10,000 coins that he thought would rise in the future. The focus is on the issuer's successful transfer of OO coins. Wouldn’t everyone be happy if they changed to cash?
Ripple was established by Ripple Labs. Unlike Bitcoin, which requires mining, Ripple is issued directly from the beginning of 100 billion, not directly circulated in the entire network, but through slow issuance. To put it bluntly, a company has created called "distributed ledger" similar to a blockchain, and writing a program will issue 100 billion Ripple coins out of nowhere, because the value of the currency will collapse when it is poured out to the market at once, so it just " "Slowly down" to change it into cash. The Securities and Exchange Commission (SEC) pointed out in the complaint that the founder and CEO of Ripple have been selling Ripple in the global market to obtain working capital since 2013, and also sell their own value. About 600 million U.S. dollars worth of Ripple coins, the company currently holds about 50 billion Ripple coins, and earns profits by selling Ripple coins every quarter.
A discerning person knows at a glance that this is the same as the principle of companies printing stocks for banknotes. Therefore, the Securities and Exchange Commission (SEC) has determined that Ripple coins are securities. The problem is that companies' printing of stocks for banknotes must be supervised by the securities authorities, because As long as money is involved, someone will come up with all kinds of tricks to "circle". Let's see if the listed companies have to go through the strict inspection of the stock exchange, or there will be scams such as Kangyou and Lesheng, which will cause a lot of investors. Victims, if cryptocurrency is not regulated, the consequences can be imagined
According to media reports, the CEO of Ripple argued that: Whether it is the U.S. Department of Justice, the Department of Treasury, or other G20 regulators, Ripple is regarded as currency, and no other country classifies Ripple as a currency. Securities, so Ripple is a currency and certainly does not need to be registered with the Securities and Exchange Commission (SEC).
It’s interesting here again. If Ripple is not a security, it is currency. Writing a program will generate 100 billion Ripple for cash. What is the difference between printing fake banknotes? Printing counterfeit banknotes also requires a printing press, which even saves a printing press. I often joke that this is called "capitalless finance."
More importantly, printing counterfeit banknotes is illegal and can be caught. The issuance of "Ripple Coins" is not manageable, so the competent authority has no choice but to use it, because it is not issued in US dollars, not legal tender, but only tokens. Go back and have a look. Financial regulations, there is really no reason for them to break the law , in the end they can only open one eye and close one eye to let them continue to play, otherwise they can only fix the law to plug this loophole.
To put it simply, this group of smart people have found a way to put on the cloak of "financial innovation" and start a capitalless financial business, and they can avoid laws and regulations, which has to be admirable. I am not optimistic about their future, but we have to see through their tricks and never be fooled by little tricks.
Ripple Lab’s plan is to hope that Ripple (XRP) will become the usage of all transactions. The current use of Ripple currency for cross-border remittance transactions is fast, it only takes 3 seconds on average, and the transaction fee is almost zero. The average transaction fee is As long as $0.00001, many people think that this is because of the use of some magical blockchain technology. In fact, the most important reason is that payment and settlement with Ripple can bypass all current supervision mechanisms without complicated manual verification procedures, and there is no A bunch of intermediary platforms, so not only the transactions are fast and the fees are low, in fact, it can be done without a blockchain, but an ordinary transaction server can be set up. It is just a matter of disagreement with the financial authorities of all countries in the world!
You may find it difficult to understand the above text description. Let me draw a schematic diagram to illustrate the operating concept of XRP currency: Ming in Taiwan wants to remit NT$300,000 to Mei in the United States, so he can buy it from the issuing unit He entered 10,000 xrp . In fact, he didn’t get anything. He just paid for 10,000 XRP coins in the mobile app (APP) (each NT$30). Next, Ming Use the mobile app (APP) to send money to mei in the United States, and mei can exchange it for US$10,000 after getting XRP coins! This process is like sending a text message from Taiwan to a friend in the United States. Theoretically, it can be completed in an instant, because transaction records need to be synchronized to several distributed ledgers, so only 3 seconds is reasonable.
The problem is that if you get 10,000 XRP coins in the United States and exchange it with the issuing unit for USD 10,000, the issuing unit will have to bear the exchange risk even if it charges a handling fee. Isn't it the result that you may lose money? Therefore, what the issuer has to do is to find a way to operate the market and convince everyone that XRP coins can UP in the future, can replace US dollar transactions, and can be free of handling fees for cross-border remittances. In short, it will rise in the future, so you must invest quickly. Therefore, in the United States Another investor, LEE , took out US$10,000 and bought 10,000 coins in the hands of mei. In the end, MING in Taiwan successfully sent US$10,000 to Mei in the United States. Investor LEE happily held 10,000 coins that he thought would rise in the future. The focus is on the issuer's successful transfer of OO coins. Wouldn’t everyone be happy if they changed to cash?
Ripple was established by Ripple Labs. Unlike Bitcoin, which requires mining, Ripple is issued directly from the beginning of 100 billion, not directly circulated in the entire network, but through slow issuance. To put it bluntly, a company has created called "distributed ledger" similar to a blockchain, and writing a program will issue 100 billion Ripple coins out of nowhere, because the value of the currency will collapse when it is poured out to the market at once, so it just " "Slowly down" to change it into cash. The Securities and Exchange Commission (SEC) pointed out in the complaint that the founder and CEO of Ripple have been selling Ripple in the global market to obtain working capital since 2013, and also sell their own value. About 600 million U.S. dollars worth of Ripple coins, the company currently holds about 50 billion Ripple coins, and earns profits by selling Ripple coins every quarter.
A discerning person knows at a glance that this is the same as the principle of companies printing stocks for banknotes. Therefore, the Securities and Exchange Commission (SEC) has determined that Ripple coins are securities. The problem is that companies' printing of stocks for banknotes must be supervised by the securities authorities, because As long as money is involved, someone will come up with all kinds of tricks to "circle". Let's see if the listed companies have to go through the strict inspection of the stock exchange, or there will be scams such as Kangyou and Lesheng, which will cause a lot of investors. Victims, if cryptocurrency is not regulated, the consequences can be imagined
According to media reports, the CEO of Ripple argued that: Whether it is the U.S. Department of Justice, the Department of Treasury, or other G20 regulators, Ripple is regarded as currency, and no other country classifies Ripple as a currency. Securities, so Ripple is a currency and certainly does not need to be registered with the Securities and Exchange Commission (SEC).
It’s interesting here again. If Ripple is not a security, it is currency. Writing a program will generate 100 billion Ripple for cash. What is the difference between printing fake banknotes? Printing counterfeit banknotes also requires a printing press, which even saves a printing press. I often joke that this is called "capitalless finance."
More importantly, printing counterfeit banknotes is illegal and can be caught. The issuance of "Ripple Coins" is not manageable, so the competent authority has no choice but to use it, because it is not issued in US dollars, not legal tender, but only tokens. Go back and have a look. Financial regulations, there is really no reason for them to break the law , in the end they can only open one eye and close one eye to let them continue to play, otherwise they can only fix the law to plug this loophole.
To put it simply, this group of smart people have found a way to put on the cloak of "financial innovation" and start a capitalless financial business, and they can avoid laws and regulations, which has to be admirable. I am not optimistic about their future, but we have to see through their tricks and never be fooled by little tricks.