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Mike Nard on Reddit:

Ok i thank you for TRYING to make it easier for new comers, but most of your info and even understand of what xrp and xrapid does is off. Ill Try to make it easy to explain exactly what, but theres a lot.

To the extent Ripple is used to exchange different assets (e.g. gold for euros), it relies on parties settling transaction outside of RippleNet (src). This makes this application of Ripple difficult to apply outside a network of trusted and sophisticated actors (viz. outside of the banking world).

--This is not true It does not rely on parties to settle transactions outside of ripple net, if a company is using xcurrent they have prefunded accounts, which xcurrent puts the transaction amount on hold from each end ( sending and receiving) before the transactions is made so it CANT FAIL, Therefore this whole section is invalid. https://ripple.com/files/ripple_product_overview.pdf page 7 will show how accounts are prefunded and settle within the network.

Because admission into the network that secures and powers Ripple is gated by the large organizations that currently run Ripple nodes, Ripple also faces resistance from actors within the cryptocurrency world who favor more open and more decentralized models.

--There is no admission to the network at all. The network is open source, to run a node it is permission-less,open key, and anybody can be a node instantly upon setting one up. These nodes also get to vote for changes. Here is evidence of these statements, and it is where one can begin to set up a node https://ripple.com/build/rippled-setup/ ALSO Ripple is completely decentralized( 600 nodes and counting), just as decentralized as any other crypto, and it will be the most decentralized within the next 6 months because the addition of more geographically diverse nodes. I could write the 4 paragraphs reasons and 3 ares of decentralization with sources but this article would be 25x longer. Here is node list.https://xrpcharts.ripple.co...

note that Ripple is particularly well suited to facilitate the exchange of one asset for another, e.g. USD for EUR, gold bullion for XRP, or BTC for JPY. Also note that for all such exchanges, all RippleNet does is update a balance sheet shared between two large financial institutions which describes how much of a given asset each owes the other. It is up to the financial insitutions to actually pay each other what they are owed (src) in USD, BTC, gold bullion, etc. XRP is the one exception to this. RippleNet can transfer XRP instantly.

-- This is not all ripple net does at all, that is not even the tip of the ice burg. EVEN ASSETS LIKE GOLD AND OIL COULD BE USED ON XCURRENT. Ripple net can be used as a liquidity source, an intermediary assets, a transaction facilitator, an inventory tracker, identification, healthcare. The possibilities are endless

Also They either have prefunded accounts for xcurrent( it is not up to them to settle after), or they instantly purchase xrp through xrapid, and the xrp is sold for the currencey of where they are sending to ( xrapid does all this in a 4-10 second transaction end to end SETTELED).

I think if your going to explain ripple labs and xrp in an easy way to someone, the most important part would be dicussing the difference between ripple labs, and xrp. Also the difference and purpose for xrapid and xcurrent.