Hello, in this lesson we are going to cover what ripple is and how it differs to Bitcoin and ultimately how it differs to a lot of the other cryptocurrencies. But Bitcoin is the largest as of now. That's the one that people are going to continuously comparative. So first of all, let's cover this that ripple ripple runs on something called the ripple network which is not blockchain. It's not blockchain. So it runs on a different Foundation, which is in blockchain, unlike many other cryptocurrencies, but we're really should do it actually do the similar sign Roughly like that, because though it's not not blockchain, it is actually similar, but there are some key differences.

One of them is there is no mining the way it is done in Bitcoin, if you're in LA Litecoin and other currencies, it's a consensus network instead of a user facing network. So that's another difference between ripple and Bitcoin. So who's using Bitcoin? I mean, who is using ripple net the average person? Well, no, it's primarily report is primarily used by big institutions and the tutions search of banks. And motherfucking war are they using it for because they always have their own money systems?

Are they using it as money? Not quite what they're actually using it not just banks, but you know, big institution in general, they are actually using it to transfer any sort of asset around the world, be that gold be that conventional fiat currency doesn't matter what it is, they are using ripple as sort of an intermediary for the transfer of assets. So the best way to think of it, like I said, is an intermediary for transfer For transfer of any asset, pretty decent way of thinking about it, if you had to explain it to somebody in one sentence, that's probably what I would say intermediary for transferring our any asset report is similar to conventional money in a way because the report currency because we've covered the report network for the report. currency is a, a debt based system, basically an IOU because it's similar to the Convert conventional conventional banking system banking system.

So take this example if I have $10,000 in my bank, why actually have is the bank saying the bank actually is saying to me it owes me $10,000. So I don't actually have 10,000 anymore. It's saying he owes me 10 pounds. That's essentially how the conventional banking system works. A lot of people don't think of it that way. But if you get like a great British pound note in the UK, to the merits of five pound note, 10 pound 20 pound 50 pound note it actually will say on there something along the lines of I owe the bearer of this note 50 pounds or however much that power was that note Worth as sending the same for paper currency, but then there is just paper, but that is saying it is he debt.

And so ripple ripple is designed to operate with a central authority. So it's similar in that regards to Bitcoin and other currency as well. Most of the validation most of the validation management, that sort of stuff and most of the valley station is handled by Ripple Labs. So, as you can imagine, if most of the validation is is handled done by a single entity, it is not completely distributed though it is does operate with a central authority like a bank but it is not completely distributed some not all the users are contributing towards the overall management, but the aim the aim is to make the network distributed. So, at the moment it is That's partly the reason why a lot of big institutions like conventional banking institutions are liking ripple, not just as a currency based platform, but just in general because it is more like their platform, though it is operated without a central 40.

They still some centralization in the fact that it's not distributed along a network that processes the transactions. A comparison would essentially be like PayPal or visa, PayPal or visa, they don't really hold money in a way, they just facilitate the transfer of it. They're not exactly like a bank, the more of an intermediary, but they're a effectively using a big intermediary. There are a lot of people use. So like PayPal or visa, but but has the philosophy of Bitcoin and other cryptocurrencies as well. And some of those core philosophies are public transactions.

That's a big part of it. No. Central for it is, that's another similarity to Bitcoin transactions are secured using cryptography transact secured using cryptography. It uses peer to peer transactions. And I think I think you get what I'm saying it cetera, et cetera, et cetera. So it's like PayPal or visa, in that it acts as a intermediary.

But it has the core philosophy of Bitcoin. That was in a very good era of Bitcoin with all of these. So this has just been a lesson on what ripple is actually if you're interested, I'm pretty sure you are. x RP is essentially the short term for the report currency like Bitcoin is BTC for example, Bitcoin cash it bch theorem in the eth report is x Rp. So like I say this has just been a lesson on what replays, how it differs to Bitcoin. If you got any questions, feel free to reach out.

And feel free to go to the video games we covered quite a bit in this lesson. And as usual, thanks for watching, and I look forward to seeing you in my next lesson.