From the rice standard to the gold standard, money has changed throughout the course of history. As it has changed, so too has humanity and how our civilizations have functioned with it. In the past money was underpinned by its recognition from a central authority as a means to guarantee exchanges for goods, services, and labor. In ancient China you could exchange money for rice at government granaries. In other civilizations, money began as a stand-in for livestock which was often the functioning currency of embryonic agricultural societies.
Then came coinage. But that was heavy. So paper money originated as a means to alleviate the risk and burden of holding onto coinage. Writs were the first paper money. After depositing money into a bank or holder, the institution would give you a piece of paper with your name and an indication of your deposit amount. This approach internationalised itself as warring European knights left for the Middle East with receipt and, when reaching the Holy Land, exchanged these back into local coinage.
Paper money became backed by gold as part of the gold and silver standard. Like the rice standard, money was redeemable for gold or silver held by a central authority. Later currencies switched to the same standard, but the precious metals could not be dispersed as various nations would accumulate each other’s currencies and acquired their own hoard of precious metals.
And then, in the 1970’s, Nixon abandoned the gold standard. This detachment of money from anything with an underlying fundamental value took us into new territory and, some have argued, has given rise to a decrease in living conditions across the Western world.
And it was into this context that Bitcoin was born, and which has now given rise to a long list of digital currencies in its wake. Here you will learn more about the digital revolution sweeping the globe that is poised to change the way we do business and live going forward. It is a very exciting time to be alive in this regard at the very least.
What is a Digital Currency?
A digital currency is a denomination that exists in purely the form of conceptual ones and zeroes on your computer. Often referred to as cryptocurrencies because of their security encryption methods which underpin them, these currencies utilize a combination of scarcity and demand to regulate their value. Most of these currencies remain decentralized and cannot be expanded because of their underlying technology. This leads to scarcity-driven value increases. Security drives adoption.
In practice, there is virtually no difference between digital and physical money. Neither is backed by anything at this juncture but digital currencies carry the distinct advantage of not being subject to inflationary (or deflationary) abuse.
So Why “Crypto”?
Crypto is short for cryptography – the science of codes. This phrase often refers to digital currencies as they utilize algorithms and other encryption methods to ensure money cannot be duplicated.
This security is what drives adoption, or so that appears to have been the hope of Satoshi Nakamoto, the inventor of Bitcoin. In theory, a person could develop powerful enough computers to hijack a blockchain network, but because of their structure, by the time they would make any meaningful gains the entire network would be well aware of what is going on, allowing countermeasures to be employed or the currency to be abandoned.
So Where Does Ripple Fit Into The Story?
Ripple is a payment processor that utilizes a consensus system to move currencies between over 40 nations. Its primary function mimics financial exchange mechanisms – but in a manner which is designed to be automated from end-to-end. For the average person, this process allows you to exchange Dollars for Euros or vice versa but within a matter of seconds as opposed to days with current legacy technology.
What is XRP?
XRP is the official cryptocurrency of the Ripple Network. Though you are not limited to its usage, it is available. XRP, unlike other cryptocurrencies, is regulated rather than driven by scarcity. This allows the Ripple Network to expand the supply if needed alleviating liquidity and shortage issues.
Mining VS Consensus
Most cryptocurrencies rely on a technology called mining. There exist a public ledger and several mining software rigs verify the authenticity of transactions for them to occur. In the process, they take a small portion for their trouble. Think of this like a transaction tax. Mining is a highly secure process with the downside that it takes time to occur.
Consensus is a different protocol. Instead of mining rigs verifying a transaction’s authenticity, a series of servers determine if the transaction is legitimate. If the majority of the servers say the transaction occurred, then it occurred. This method is both secure and fast.
Ripple and Gambling
Members of the gambling industry have been on the forefront of technological developments as they have emerged. No surprise then that online casinos accept XRP and Ripple as viable payment options. However while many accept Ripple and XRP, not all do so. As such, it is useful to check sites like smartcasinoguide.com to see which casinos have joined the crypto revolution and compare what bonuses they offer.
What Advantages Do Ripple and XRP Have?
Crypto by itself is a highly secure currency. That is an advantage in and of itself. With the use of online wallets, you never risk carrying a lot of money around with you. Yet if you wish to have an added layer of anonymity, you can carry around a portable hard drive with your wallet on it.
Crypto and digital currencies are anonymous by nature unless you are utilizing a brokerage account. This means your wins are not recorded under your name and can be sent to private accounts without anyone knowing about it and thus harassing you over your life choices.
Finally, crypto is a good storage of wealth as the currency does not devalue like its physical counterparts. This makes it a great investment option for long-term holding or a viable method of storing wealth.