From Ripples to Waves: Building the future of Payment Systems - Part 1

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From Ripples to Waves: Building the future of Payment Systems - Part 1

Posted on August 11th, 2018 in Closer Look by Ryan Warner

The history of Ripple is an interesting one from it's beginnings as a credit extension service, to payment service, and internal conflict arising from the love affair of one of the founders resulting in a new currency nearly identical to what we know XRP as today. To understand Ripple and XRP we have to step back to a time before there was Ripple, or even OneCoin. The concept steemed from Ryan Fugger (@rfugger) as a system called Ripplepay. The idea was to allow friends and family to extend lines of credit, as well as currency payments.  Although Ryan Fugger is no longer at Ripple, the basic concept lives on at the organisation and also in XRP as the Internet of Value. Moving Away From Proof-of-Work The spring of 2011 saw the original team of the XRP Ledger come together with Arthur Britto (@art_brito), David Schwartz (@JoelKatz), and Jed McCaleb (@JedMcCaleb). Their premise was to move away from the Proof-of-Work algorithm employed by Bitcoin and others to a consensus system of validators with the idea to eliminate the potential of a "51% attack," which could double-spend and rewrite history of transactions. Chris Larsen (@chrislarsensf) came on board with the team in late 2012 with experience in fintech as well as E-Loan and Prosper. Soon after Chris Larsen came aboard the XRP Ledger team contacted Ryan Fugger in an effort to combine his credit network with their digital currency. From here OpenCoin was born. OpenCoin was created before the era of "Initial Coin Offerings," and relied upon traditional financing, investment, and venture capitalists for funding. This gave investors ownership percentages in OneCoin. To this day these investors are still kept private, and their ownership stakes are not known. Funding Rounds What we do know are the funding rounds and the order they proceeded in detailed below: April 2013 - Andreessen Horowitz, Pantera Capital, Lightspeed Venture Partners,FF Angel LLC, Vast Ventures, Bitcoin Opportunity Fund. May 2013 - Google Ventures, IDG Capital Partners. November 2013 - Core Innovation Capital, Venture 51, Camp One Ventures, IDG Capital Partners. Though some of the names on the list are well known the total capital gained from funding was $9 Million. This sustained the early days of OneCoin/Ripple for a period of three years. This number is incredibly small when you consider the millions raked in by ICO's today.

In Part 2 we will cover the Founders' XRP, and promotion.

References: https://xrphodor.wordpress.com/2018/04/09/a-history-of-xrp-ripple-part-1-2011-2013/ https://en.bitcoinwiki.org/wiki/Ripple https://en.wikipedia.org/wiki/Ripple_%28payment_protocol%29

To learn more about Ripple and XRP, visit 

https://ripple.com/xrp/