Ripple’s Intriguing Origins and Its Evolution
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An unexpected revelation has altered the historical narrative of Ripple. Emails from 2014 suggest that the foundations of Ripple trace back to 2004, predating even the conceptualization of Bitcoin by Satoshi Nakamoto, who released the Bitcoin whitepaper in 2008. These emails, disseminated by notable XRP community member SMOQE, feature insights from tech writer Reutzel Bailey and industry insider Jeffrey Cliff. They imply that the seeds for Ripple were sown well before the first Bitcoin block was mined in January 2009.
Email Exchange Challenges the Timeline
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In a 2014 email discussion, Bailey highlights that Ryan Fugger first envisioned a payment system in 2004. This early concept, termed RipplePay, was not designed as a public, mined cryptocurrency. Instead, it facilitated value transfers outside the traditional banking system. Bailey notes that Chris Larsen later adapted Ripple to align with the emerging cryptocurrency trend following Bitcoin’s rise to prominence. Cliff emphasizes that Ripple’s inception occurred independently of Bitcoin, distinguishing it from other digital currencies that followed Bitcoin’s framework.
RipplePay’s Pioneering Concept
According to various reports, Fugger’s 2004 project was centered on expediting payments between trusted participants. It relied on digital trust rather than mining, with transactions being validated by a select group rather than through public mining. This approach ensured swift and private transactions. It wasn’t until 2011 that discussions began around developing an open network accessible to anyone for transaction validation.
The Emergence of the XRP Ledger in 2012
In 2011, Jed McCaleb collaborated with Arthur Britto and David Schwartz to develop what became known as the XRP Ledger. Their goal was to create an alternative to Bitcoin that didn’t rely on proof-of-work. By 2012, Fugger had transferred his project to McCaleb, Larsen, and others, who launched NewCoin. This initiative was rebranded as OpenCoin in 2013, eventually becoming known as Ripple in 2015. The XRP token was introduced in 2012, marking a significant milestone in the project’s evolution.
Token Distribution and Leadership Dynamics
Upon XRP’s introduction, its founders allocated 80 billion tokens to the company. McCaleb received 9.5 billion XRP, agreeing to a gradual sale to prevent market disruption. He completed his XRP sales in 2022 and subsequently co-founded Stellar. Larsen remained with Ripple and currently serves as its chairman. While Bitcoin is often credited as the pioneer cryptocurrency, these documents reveal that Ripple’s foundational concept of value transfer without intermediaries was envisioned much earlier.
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