Advertisement

Ripple: Overview and Outlook

  • Frederik Armknecht
  • Ghassan O. Karame
  • Avikarsha Mandal
  • Franck Youssef
  • Erik Zenner
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 9229)

Abstract

Ripple is a payment system and a digital currency which evolved completely independently of Bitcoin. Although Ripple holds the second highest market cap after Bitcoin, there are surprisingly no studies which analyze the provisions of Ripple.

In this paper, we study the current deployment of the Ripple payment system. For that purpose, we overview the Ripple protocol and outline its security and privacy provisions in relation to the Bitcoin system. We also discuss the consensus protocol of Ripple. Contrary to the statement of the Ripple designers, we show that the current choice of parameters does not prevent the occurrence of forks in the system. To remedy this problem, we give a necessary and sufficient condition to prevent any fork in the system. Finally, we analyze the current usage patterns and trade dynamics in Ripple by extracting information from the Ripple global ledger. As far as we are aware, this is the first contribution which sheds light on the current deployment of the Ripple system.

Keywords

Ripple Bitcoin Security Forks 

Notes

Acknowledgements

The authors would like to thank Ludovic Barman for the help in extracting the relevant statistics from the Ripple ledgers.

References

  1. 1.
    Litecoin: Open source P2P internet currency. https://litecoin.org/
  2. 2.
    Namecoin: A trust anchor for the internet. https://namecoin.info/
  3. 3.
    Project tyrus. https://tyrus.java.net/
  4. 4.
  5. 5.
  6. 6.
    Ripple: Opening access to finance. https://ripple.com/
  7. 7.
    Ripple validating servers. https://ripple.com/ripple.txt
  8. 8.
    Snapswap Ripple gateway. https://snapswap.us/#/
  9. 9.
    US banks announce Ripple protocol integration. http://www.coindesk.com/us-banks-announce-ripple-protocol-integration/
  10. 10.
    Androulaki, E., Karame, G.O.: Hiding transaction amounts and balances in Bitcoin. In: Trust and Trustworthy Computing - 7th International Conference, TRUST 2014, Heraklion, Crete, Greece, 30 June – 2 July, 2014. Proceedings, pp. 161–178 (2014)Google Scholar
  11. 11.
    Androulaki, E., Karame, G.O., Roeschlin, M., Scherer, T., Capkun, S.: Evaluating user privacy in bitcoin. In: Sadeghi, A.-R. (ed.) FC 2013. LNCS, vol. 7859, pp. 34–51. Springer, Heidelberg (2013) CrossRefGoogle Scholar
  12. 12.
    Bonneau, J., Miller, A., Clark, J., Narayanan, A., Kroll, J.A., Felten, E.W.: Research perspectives and challenges for Bitcoin and cryptocurrencies. In: 2015 IEEE Symposium on Security and Privacy, May 2015Google Scholar
  13. 13.
    Buterin, V.: Bitcoin network shaken by blockchain fork. https://bitcoinmagazine.com/3668/bitcoin-network-shaken-by-blockchain-fork/
  14. 14.
    Coinist Inc., Ripple gateways. https://coinist.co/ripple/gateways
  15. 15.
    Dingledine, R., Mathewson, N., Syverson, P.: Tor: The second-generation onion router. In: Proceedings of the 13th Conference on USENIX Security Symposium, SSYM 2004, Berkeley, CA, USA, vol. 13, p. 21. USENIX Association (2004)Google Scholar
  16. 16.
    Elias, M.: Bitcoin: Tempering the digital ring of gyges or implausible pecuniary privacy (2011). http://ssrn.com/abstract=1937769
  17. 17.
    Gervais, A., Capkun, S., Karame, G.O., Gruber, D.: On the privacy provisions of bloom filters in lightweight bitcoin clients. In: Proceedings of the 30th Annual Computer Security Applications Conference, ACSAC 2014, 8–12 December, 2014, New Orleans, LA, USA, pp. 326–335 (2014)Google Scholar
  18. 18.
    Gervais, A., Karame, G.O., Capkun, V., Capkun, S.: Is Bitcoin a decentralized currency? IEEE Secur. Priv. 12(3), 54–60 (2014)CrossRefGoogle Scholar
  19. 19.
    Ghosh, A., Mahdian, M., Reeves, D.M., Pennock, D.M., Fugger, R.: Mechanism design on trust networks. In: Deng, X., Graham, F.C. (eds.) WINE 2007. LNCS, vol. 4858, pp. 257–268. Springer, Heidelberg (2007) CrossRefGoogle Scholar
  20. 20.
    International Ripple Business Association. Listed businesses. http://www.xrpga.org/listed-businesses.html
  21. 21.
    International Ripple Business Association. Ripple exchangers. http://www.xrpga.org/exchangers.html
  22. 22.
    International Ripple Business Association. Ripple gateways. http://www.xrpga.org/gateways.html
  23. 23.
    International Ripple Business Association. Ripple market makers. http://www.xrpga.org/market-makers.html
  24. 24.
    International Ripple Business Association. Ripple merchants. http://www.xrpga.org/merchants.html
  25. 25.
    Joyes, K.: Safety, liveness and fault tolerance - the consensus choices. https://www.stellar.org/blog/safety_liveness_and_fault_tolerance_consensus_choice/
  26. 26.
    Karame, G.O., Androulaki, E., Capkun, S.: Double-spending fast payments in Bitcoin. In: Proceedings of the 2012 ACM Conference on Computer and Communications Security, CCS 2012, New York, NY, USA, pp. 906–917. ACM (2012)Google Scholar
  27. 27.
    Karame, G.O., Androulaki, E., Roeschlin, M., Gervais, A., Čapkun, S.: Misbehavior in Bitcoin: a study of double-spending and accountability. ACM Trans. Inf. Syst. Secur., 18(1), 2:1–2:32 (2015)Google Scholar
  28. 28.
    Miers, I., Garman, C., Green, M., Rubin, A.D.: Zerocoin: anonymous distributed e-cash from Bitcoin. In: Proceedings of the 2013 IEEE Symposium on Security and Privacy, SP 2013, Washington, DC, USA, pp. 397–411. IEEE Computer Society (2013)Google Scholar
  29. 29.
    Moreno-Sanchez, P., Kate, A., Maffei, M., Pecina, K.: Privacy preserving payments in credit networks: Enabling trust with privacy in online marketplaces. In: Network and Distributed System Security (NDSS) Symposium (2015)Google Scholar
  30. 30.
    Nakamoto, S.: Bitcoin: A peer-to-peer electronic cash system (2009). http://bitcoin.org/bitcoin.pdf
  31. 31.
    Ober, M., Katzenbeisser, S., Hamacher, K.: Structure and anonymity of the Bitcoin transaction graph. Future Internet 5(2), 237–250 (2013)CrossRefGoogle Scholar
  32. 32.
    Ripple Labs Inc., Giveaways - XRPtalk. https://xrptalk.org/forum/105-giveaways/
  33. 33.
    Ripple Labs Inc., Ripple charts. https://www.ripplecharts.com
  34. 34.
    Ripple Labs Inc., Setup a validating server. https://wiki.ripple.com/Setup_a_validating_server
  35. 35.
    Ripple Labs Inc., Transactions. https://ripple.com/build/transactions/
  36. 36.
    Ripple Labs Inc., Why is Ripple not vulnerable to Bitcoin’s 51% attack?Google Scholar
  37. 37.
    Ron, D., Shamir, A.: Quantitative analysis of the full bitcoin transaction graph. In: Sadeghi, A.-R. (ed.) FC 2013. LNCS, vol. 7859, pp. 6–24. Springer, Heidelberg (2013) CrossRefGoogle Scholar
  38. 38.
    Schwartz, D., Youngs, N., Britto, A.: The Ripple protocol consensus algorithm (2014). https://ripple.com/files/ripple_consensus_whitepaper.pdf

Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  • Frederik Armknecht
    • 1
  • Ghassan O. Karame
    • 2
  • Avikarsha Mandal
    • 3
  • Franck Youssef
    • 2
  • Erik Zenner
    • 3
  1. 1.University of MannheimMannheimGermany
  2. 2.NEC Laboratories EuropeHeidelbergGermany
  3. 3.University of Applied SciencesOffenburgGermany

Personalised recommendations