Ripple Labs is hoping to continue to gain support for a concept that moves away from monetary incentives. What makes this protocol different from mining is that the Ripple Protocol involves gateways and move money along something that’s called validators, which establish trust within the network.
So far Ripple Labs has been able to raise $6.5 million in angel and seed funding from the likes of Andreessen Horowitzs, Google Ventures and Lightspeed Venture Partners.
If you are still having trouble understanding his concept, you can also compare the protocol to the stock market.
The company’s CTO Stefan Thomas told CoinDesk that they are more like ‘stakeholders’ in the internet, but do not directly own a piece of it. The company believes that this is a prime example of how a truly global payment protocol should operate.
For Thomas, gateways are the key to the regulatory hurdles that many within the financial technologies sphere face.
“The idea is that rather than us worrying about some global compliance strategy we provide the language, the graph for the different relationships,” Thomas said. “And then the gateway operators, they know their local jurisdiction.”
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