What is Ripple? (XRP, IOUs, Gateway and Validators Explained)

Published on March 1, 2021

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The banking system today uses slow and outdated systems in order to transfer money (i.e. value) around the world. Ripple aims to create the Internet of value called RippleNet – a set of unified rules helping the financial sector use 21st century solutions for fast and scalable transfer of money.

Ripple has two main forms of transferring value – IOUs and XRP. IOUs are representation of debt and can be issued for any type of real world asset. XRP is RippleNet’s native currency which can be used to transfer money quickly around the world.

That’s Ripple in a nutshell. If you want a deeper explanation about Ripple and XRP keep on watching the video, here’s what I’ll cover:

0:42 – The issue with bank transfers
2:34 – Ripple in a nutshell
3:26 – How RippleNet works
4:42 .- RippleNet currencies (XRP, IOUs)
4:57 – IOUs
7:10 – XRP
11:53 – Is Ripple centrazlied?
14:30 – Conclusion

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