In Ripple, users make payments between themselves by using cryptographically signed transactions denominated in either Ripple’s internal currency named XRP or in arbitrary other assets (including real-world assets such as dollars, gold, air miles, etc.). For XRP-denominated transactions Ripple can make use of its internal ledger. For payments denominated in all other assets, the Ripple ledger only records the amounts owed by one user to another. In this way, all these assets are represented as debt. Since Ripple only keeps the records in its ledger and has no real-world enforcement power, this requires trust. Users have to specify which other users they trust and to what maximum amount. This can be specified for each asset type individually.When a non-XRP payment is made between two users that trust each other, the balance of the mutual credit line is adjusted, subject to limits set by each user. In order to send assets between users that have not directly established a trust relationship, the system tries to find a path between the two users such that each link of the path is between two users that do have a trust relationship. All balances along the path are then adjusted simultaneously and atomically. This mechanism of making payments through a network of trusted associates is named ‘rippling’. It is a digital version of the age-old hawala system and has been referred to as ‘Facebook for money’.
Well, if you want to send money between different gateways you’ll need to trust people.
The similarity is that with nubits you also have to trust that you’ll get money when you withdraw, but with nubits you just need to trust the currency. All custodians basically work together and the risk is placed on nushareholders.
"Like a traditional ledger, the Stellar ledger records a list of all the balances and transactions belonging to every single account on the network. A complete copy of the global Stellar ledger is hosted on each server that runs the Stellar software. Any entity can run a Stellar server.
These servers form a decentralized Stellar network, allowing the ledger to be distributed as widely as possible. The servers sync and validate the ledger by a mechanism known as consensus."
They to offer open source code. But the repository is a vagrant box with the code pre-installed. I don’t see an actual client and their documentation suggests that most people use them as a centralized service.
Also they say nonprofit at the top and at the bottom of the page say not-for-profit which are entirely different.
I was considering adding them at one point but they don’t make it easy to use their network without using their centralized service.
Well a global ledger replicated on several servers is exactly how bitcoins works. That is one of the primary achievements. However specification source code (example code) for the Bitcoin protocol isn’t a development VM with software preinstalled. Stellar does not provide a sufficiently secure way of implementing the software. When I’m looking for spec code, I expect to see a basic client that explains their protocol. So their entire project confuses me and but maybe there is something I’m missing.
Ripple being centralized suffers from having a single point of failure and a single point of control/surveillance.