Crypto researcher SMQKE (@SMQKEDQG) recently drew attention to a 2018 Ripple presentation, sharing key extracts. This presentation provides insight into how significant financial institutions viewed Ripple at the time.
Highlights of the Ripple Presentation
The presentation suggests that new technologies, including those related to Ripple, are being tested within a closed environment, away from public scrutiny. This secrecy surrounding such technologies is understandable, considering they are managed by powerful financial institutions.
Ripple as a Central Bank
A particularly striking point from the presentation is the characterization of Ripple as a “central bank.” This description reflects the centralized nature of Ripple’s system, which operates under the company’s direct control. RippleNet integrates various payment systems and XRP, functioning within a highly controlled environment. The Ripple system consists of a limited number of independent gateways, most of which are managed by Ripple. These gateways perform crucial roles similar to those of traditional banks, facilitating transactions and ensuring secure settlement. The presentation also delves into the consensus mechanism used by Ripple, known as the “Ripple Protocol Consensus Algorithm” (PPCA).
Deflationary Nature of XRP
The presentation also highlights the deflationary characteristic of XRP. For each transaction, 0.00001 XRP is burned, gradually reducing the total supply of XRP. This information reveals how Ripple and XRP were positioned within the global financial system as of 2018.
This data highlights the significance of Ripple’s ecosystem and how its technologies were tested confidentially. The description of Ripple as a central bank and the deflationary nature of XRP emphasize the system's importance and potential impact.
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