What happens if someone steals all the founders' ripples?
Won't that destroy the system?
No. It really doesn't matter. Dollars are still useful to me even though Bill Gates owns way more of them than I do. Ripples will still pay transaction fees.
Can you spend without a complete ledger?
Yes, all you need to know is what the current sequence number of your account is.
Can the same wallet be used simultaneously on different computers?
Yes. However, it is possible to attempt to overspend. Overspending will fail.
Additionally, the current client will likely lose some annotations if used in this way.
If people could use dollars all the time via Ripple where do ripples fit in?
To prevent spamming, transactions require a small transaction fee paid in ripples.
How long before a transaction is considered final?
In ordinary circumstances, a few seconds.
In extraordinary circumstances, such as a network split, until some minutes after connectivity is restored.
The client will note when a transaction occurs under extraordinary circumstances. For small transactions and dealing with trusted parties, there is no need to wait for connectivity to be restored.
How can a transaction be verified?
The sender specifies a payment address in a signed message. Every transaction has a hash which can be used to look it up via a node with sufficient ledger history. The ledger has enough information to verify that the transaction meets the payment terms.
What happens to Ripple if Ripple Labs goes away?
The Ripple network is independent of Ripple Labs and can operate on its own. Ripple Labs is just here to pay for development and promote the network. But the project can easily carry on without Ripple Labs. Ripple Labs can not control the Ripple network.
Is Ripple open source?
Yes. Both the Ripple client and server are open source.
Client source code:
Server source code:
How does Ripple handle privacy?
Anonymity is not a design goal of Ripple. However, Ripple should provide adequate privacy for most people.
- Similar to Bitcoin:
- if people don't tell anyone an address is theirs no one will know the address is theirs.
- if you send your funds to another address you control you can deny you control it.
- Proxy payments:
- Soon, accounts can be set to have their payments sent to a gateway. Payments sent this way are not traceable unless either the sender, the receiver, or the gateway reveal the transactions. This allows people to mask their total payments and disassociate their spending from the general public. Also, law enforcement will be able to subpoena the gateway if needed.
- Boxed payments:
- In future, Ripple may support boxed payments. Boxes hold funds and can be transfer anonymously wallet to wallet. However, to cash out a box, the contained funds must be removed from the box and added to a regular account.
Who will run validating nodes?
Heavy network users will probably want to run their own servers that track the network, Unless they have some agreement with someone else who runs a server, nobody has any obligation to provide them access to the Ripple network. If heavy network users keep requesting information and issuing requests but do not pull their own weight, they may find themselves stuck with a trickle of information where they want a firehose. However, if they do their part in sustaining the network, then other server operators who also want a fast path into the network will exchange information with them, server-to-server, for mutual benefit.
Running a validating node does not require running significantly more resources than running a server that tracks the network. Anyone, with a reputation, who needs to track the network will be able to also run a validating node at near-zero additional cost or effort.
Also, anyone who wants to support the network will run a validating node. Anyone who wants a direct say in how the network adopts new features will run a validating node.
- Anyone whose business relies on the network:
- Day traders
- Anyone who wants to support currency choice:
- Digital rights groups
- Libertarian groups
- Anyone who wants to support the underbanked:
- Anyone who wants to provide a public service:
- Anyone who provides hosting services for open source projects
How do people with no ripples (XRP) pay for transactions?
A person without XRP cannot pay for transactions. He must have someone send XRP to his account. If his account has been created, then they must send at least the account reserve to create the account.
Can I change my wallet password?
No, wallet passwords may not be changed. If your wallet password may have been compromised you should:
- Create a new account in a new wallet.
- Transfer your funds to your new account.
- Set all your credit limits to zero.
- Lock your wallet.
- Inform your creditors of your new account.
What are the impacts of having a bad UNL list?
To have a bad UNL list, you must intentionally choose to do so.
However, should you do this and if the majority of the validators on your UNL should decided to defraud you, they could convince you that they had made a payment to your account, when in fact they had not. In which case, you might erroneously provide something in return. For example, you might send a real payment in return in which case you would have lost the value of your payment.
What is required for a double spend to happen?
A "double spend" occurs when someone relies on the result of a transaction and that transaction is subsequently invalidated. Double spends are a concern because a merchant may irreversibly deliver a product expecting payment from a transaction and may suffer a loss if they subsequently lose the funds they relied on that transaction to deliver. Ripple provides specific confirmation of transactions that are irreversible. If this indication were to be provided and the funds later be revoked or reversed, that would consitute a double spend.
One possible cause of a double spend would be a bug in the Ripple software. The Ripple software is designed specifically to provide confirmations that guarantee the irreversibility of a transaction, but it is always possible that some bug or defect could cause it to fail to operate as intended. As the Ripple network matures this possibility becomes less likely due to continuous testing, additional auditing of the source code, and bug fixes.
In the absence of a bug, a double spend would occur when a transaction passes the server's confirmation logic but is subsequently invalidated. The server's transaction confirmation logic confirms transactions when they appear in ledgers that pass its ledger confirmation logic, so a double spend would require convincing a server to accept, as fully confirmed, a ledger that subsequently disappears from the public ledger chain.
The logic to accept a ledger as fully-confirmed has two steps. First, the ledger must arise as the result of the network's consensus process, that is, the majority of the operating, trusted validators on the network must agree on that ledger. Second, a majority of the validators on that particular server's trust list must certify that they saw a super-majority of the validators that they trust observe that same consensus process and agree on that ledger.
Double spends are prevented both at the network level and at the individual server level. Individual servers protect themselves against double spends by selecting validators which are unlikely to collude. As the Ripple network grows, the network as a whole will protect itself from double spends by maintaining a diverse set of validators operated by notable and reputable individuals, organizations, and business .
If one were the victim of a double spend, everyone would have cryptographic proof that this had happened and would know which validators, and which operators, had betrayed the trust extended to them. Even now, with few validators, the Ripple network is secure because all the validators have a collective interest in the Ripple network succeeding, and cryptographic proof of their attempted betrayal would be suicide.
How does the distributed exchange work?
At its core, Ripple is a distributed database secured by cryptography. The database is used to store the ledger which contains the current state of everyone's balances and trust limits. The ledger can also store other entries.
If someone holds 10 BTC and they are willing to sell it for $130 USD, they can place an offer entry in the ledger stating so. Then anyone who wants to can take them up on the offer. The Ripple network moderates the transactions and makes it happen.
Why have a sequence number per address?
It is the simplest way to ensure that a transaction cannot be applied more than once and to easily reject old transactions replayed to the network. Once an account has passed the sequence number for a transaction, that transaction cannot be applied to that ledger or any subsequent ledger.
How are invalid spends treated?
- Spends over balance on a transaction are ignored or delayed.
- Spends out of sequences are delayed.
Can Ripple do blinded cash like open transactions?
No. But, there are plans for something similar with contracts.
- Blinded cash can be transferred and redeemed without the issuer knowing who has the cash.
- In open transactions, blinding is used so that the issuer does not know who the intermediaries are for currency that is passed among a group of people.
- The issuer take currency, verifies it is valid and then issue a new instrument that can only be redeemed with a private key unknown to the issuer.
- Ripple and Bitcoin have this functionality built in to an extent.
- The coins can repackage currency by creating a new address.
- What open transactions does which is different is no intermediary transactions are stored.
- That is with open transactions, without collusion, there is no record of transactions to follow.
- Ripple operates the ledger publicly, so anyone can create a record. To be like open transactions, ripple would have to have an anonymizing server and a signing authority.
- Ripple has no issuers/signing authority for ripple, it has global consensus which is implied from local consensus.
- Ripple has no anonymizing servers.
- Ripple has facilities for issuers to audit anonymizing servers.
- Introduction of a trusted authority defeats ripple's decentralization goals.
Why encrypt all connections?
Can a Ripple validator block a user?
Ripple validating nodes can choose which transactions to forward and accept. They can vote no to any transactions, but they must process transactions agreed to by the consensus of the network.
If validators block specific transactions without justification, this will be obvious from the proposals they send. If people believe this action is unjustified, they can present those signed proposals along with other signed proposals for other validators to prove the behavior. That is, a validator cannot do this secretly. If others disagree with this behavior, they can, and should, stop trusting this validator.
Why is Ripple not vulnerable to Bitcoin's 51% attack?
Bitcoin relies on the distributed computational power of Bitcoin miners to protect the integrity of the Bitcoin network. Bitcoin is vulnerable to an attack by anyone who can accumulate computational power equivalent to 51% of the Bitcoin network's computational power.
In contrast, Ripple utilizes consensus to protect the integrity of the ripple network. Having excess computational power does not provide any advantage to an attacker. As such, Ripple is immune to attacks based on computational power.
An analogous attack for Ripple would be for someone to control the majority of Ripple validators for each Ripple participant. As each Ripple participant chooses their own validators, they can easily avoid this problem by simply not choosing colluding validators as the majority of their validators.
- As soon as an attack is discovered, it is easily identified along with who the colluding validators are.
- If a person discovers that a validator is colluding, they can simply remove that validator from their validator list.
- The attacker's maximum payoff for a successful attack is temporarily disabling the network.
- Since the payoff is so minimal and the difficulty is so high for each attack it is unlikely anyone would attempt this attack at scale.
What is the impact of a Bitcoin 51% attack
- Exactly what someone would need to do to execute a successful botcoin 51% attack?
- How much it would cost?
- How long would it take?
- Who could do it?