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ddawson
2022-12-15 16:46:01 -08:00
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@@ -14,6 +14,8 @@ XRP is the cryptocurrency supported by the XRP Ledger.
A cryptocurrency is a digital or virtual currency that is secured by cryptography and tracked using a blockchain. The security and integrity of cryptocurrency makes it nearly impossible to counterfeit or double-spend.
![XRP on the blockchain](img/introduction10-xrp-on-chain.png)
Cryptocurrencies, digital currencies, and digital assets all fall into the same general category. Cryptocurrencies are:
- digitally native (meaning they are built for the internet)
- programmable
@@ -23,6 +25,8 @@ Cryptocurrencies, digital currencies, and digital assets all fall into the same
- not subject to counterfeit
- do not require a bank account or infrastructure to settle payments.
![Advantages of cryptocurrencies](img/introduction11-all-the-things.png)
Cryptocurrencies are _fungible tokens_. _Fungible_ means that you can replace one token with other tokens of equal value. Postage is an example of a fungible token: if it costs 50 cents to mail a letter, you can use 2 25-cent stamps or 5 10-cent stamps for the postage, because postage stamps are fungible (consistent in relative value and interchangeable).
Cryptocurrencies are also decentralized. Theres no central authority governing the currency. Once the ledger is on the blockchain you cannot change it. It is difficult to censor cryptocurrency: so long as the system is sufficiently decentralized, no one can roll back transactions, freeze balances, or block someone from using a decentralized digital asset. Rules do not change without significant coordination among all participants.
@@ -31,6 +35,8 @@ Cryptocurrencies are compelling for investors and developers because no single e
## But Why Is It Valuable?
![Advantages of cryptocurrencies](img/introduction12-diamond.png)
It might seem strange that cryptocurrency is based solely on computer data, and not on any sort of tangible commodity such as precious metal. Traditionally, currencies have been based on cattle, sea shells, rare metals, stones, or other physical objects. But these items have value only because there was agreement between people in a culture.
While it might seem safer to have something “real” in your hand, I personally wouldnt know fools gold from the actual thing, or cubic zirconia from a genuine diamond. Paper money can be counterfeit. You can forget you have a $10 bill in your pocket and ruin it in the wash. It is costly to safely store and transport valuable items for payment.
@@ -42,4 +48,8 @@ The value of cryptocurrency comes from the faith that holders place in the curre
XRP is a cryptocurrency created in 2011 by a company named OpenCoin, which later changed its name to Ripple. The Ripple name is based on the way technology allows payments to "ripple" through multiple hops and currencies. The _X_ prefix is the ISO 4217 standard for non-national currencies. In choosing the ticker symbol, the creators chose _XRP_ to refer to the asset in all contexts.
At the time of its creation, there were 100 billion XRP. XRP are held in escrow and sold at intervals that help to maintain the stability of the currency and ensure that the general supply grows predictably.
![Dennis with one XRP](img/introduction13-x-prefix.png)
At the time of its creation, there were 100 billion XRP. XRP are held in escrow and sold at intervals that help to maintain the stability of the currency and ensure that the general supply grows predictably.
![One Hundred Billion with a "B"](img/introduction14-hundred-billion.png)

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# What is the XRP Ledger?
The XRP Ledger is a _blockchain_ that records transactions of XRP and other tokens.
![Howdy, I'm Dennis Dawson](img/introduction1-howdy.png)
I started working with the XRP Ledger in late 2021. At the time, I could completely relate to this tongue-in-cheek meme I found on the interwebs:
<table border="2">
<tr><td>
"Cryptocurrency combines everything I don't understand about money with everything I don't understand about computers."
</td></tr>
</table>
This quote gave me a boost in confidence. It helped me get past my imposter syndrome. If you can relate to that notion, what follows is my best attempt at describing the XRP Ledger.
XRP is a digital currency in which transactions are verified and records maintained by the XRP Ledger, a decentralized system using blockchain cryptography, rather than a centralized authority. Now, to break down that sentence...
## What Is a Blockchain?
A blockchain is a continuously growing list of records. The blockchain starts with a block of data.
![A block of data](img/introduction2-data-block.png)
A group of trusted validator nodes reach consensus that the data is valid.
The block is uniquely identified with a very elaborate, complicated, computer-generated, cryptographic Hash number that is 64 hexadecimal characters long,
![Validator nodes](img/introduction3-validators.png)
The block is uniquely identified with a very elaborate, complicated, computer-generated, cryptographic Hash number that is 64 hexadecimal characters long.
![Crypto hash](img/introduction4-hash.png)
The block is also identified by a timestamp with its creation time.
![Timestamp](img/introduction5-time-stamp.png)
Each validator node gets its own copy of the data block. There is no single central authority. All copies are equally valid.
![Validators with valid copies](img/introduction6-validators.png)
Each block contains a hash pointer as a link to the previous block. It also has a timestamp, new data, and its own unique hash number.
Using this structure, each block has a clear position in the chain, linking back to the previous data block. This creates an immutable chain of blocks. You can always verify all current information on the chain by tracing back through the previous blocks.
![Hash pointer](img/introduction7-two-blocks.png)
Using this structure, each block has a clear position in the chain, linking back to the previous data block. This creates an immutable chain of blocks. You can always verify all current information on the chain by tracing back through the previous blocks.
![Three data blocks](img/introduction8-3-blocks.png)
By design, blockchains are resistant to modification of the data. Every ledger node gets an exact copy of the blockchain.
![Two validators with identical copies of the blockchain](introduction9-2-sets-of-3.[png])
This creates an open, distributed ledger that records transactions between parties efficiently and in a verifiable and permanent way.
Once recorded, the data in any given block cannot be altered retroactively, unless a majority of the validators agree to the change. If so, all subsequent blocks are changed in the same way (a very rare and extreme occurrence).

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