An Introduction: What is Ripple?
Ripple is a pre-Bitcoin effort that began in 2004, created by Ryan Fugger, whereas Satoshi Nakamoto’s Bitcoin came in 2009. Jed McCaleb was aware of the upcoming cryptocurrency industry; he developed a verification system for the virtual currency instead of getting into the mining process and its proof-of-work. The network members had to give their approval to verify a transaction. Jed McCaleb hired Chris Larsen, and they met Ryan Fugger, who approved their idea and gave them the project. They developed and released the OpenCoin in September of 2012 to develop RTXP Ripple Transaction Protocol and exchange network. OpenCoin in September of 2013 came to be known as Ripple Labs after some fund-raising efforts, and finally, Ripple in two years hence. XRP is the third most capitalized cryptocurrencies since then.
Ripple is a combined settlement system performed in real-time, besides a foreign exchange market and payment network. People often confuse Ripple Labs, Ripple, and XRP. Ripple Labs company made and further developed Ripple and now is known as Ripple only. It signifies the Blockchain system, and XRP is the token it uses on its network. Unlike Bitcoin, it is a centralized system. In this article, Ripple will signify the payment system. The Ripple system, like Bitcoin, is a secure blockchain. Its approval system relies on RTXP that is built on a few known servers. Ripple exercises more than 50% of voting power for validation of the transaction. Ripple owns more than 75% of 100 billion XRP tokens gifted by the creators of the company. Ripple is on its way to replace SWIFT, operating as the middleman since the 1970s in cross-border financial transactions.
Reasons Why Ripple’s Future is Bright
Ripple stands apart from other cryptocurrencies because it addresses real-life issues. In November 2019, Brad Garlinghouse, the CEO of Ripple, said on Bloomberg that most probably ninety-nine percent of the cryptocurrencies would finish pointing out that they are not addressing the real-life issues. On the other hand, Ripple helps in transactions that are not only fast, but also secure and, above all, inexpensive, the globe over. Ripple aims in the banking sector of the world economy. It is challenging SWIFT, which came into the business in 1970, which has not upgraded its speed to today’s world requirement. It takes two to six days for transfers, and on top of it, it has high transfer charges. The banks are searching for better alternatives. Ripple can cater to the need of the day.
Ripple is a Secure, Fast, and Reliable Technology
Ripple is a secure technology and equally fast and reliable and has many advantages over SWIFT that it wants to replace. Ripple has a promising four-second transaction time due to the centralized network. It costs only $0.004 per transaction. The transactions maintain the transparency that users can consult if required. Thanks to the network centralization, the Blockchain Ripple transactions are unalterable and guarantee network security. They assure banks and better speed and security.
Ripple has Already Attracted More than 100 Banks
Ripple is ambitious to become the center in interbank exchanges. SWIFT has been there for a long time, and it is not possible to replace it. However, Ripple is already partnering with over a hundred banks, like Bank of America, Standard Chartered, UBS, JP Morgan, Barclays, American Express, and Santander. These partnerships are based on trying out the Ripple network in a real situation and exchanges between different agencies in different countries. These banks have chosen Ripple’s services to that of SWIFTS with these facilities and lower transaction fees. These are productive enough reasons for banks to prefer Ripple. Even money transfer companies have been preferring Ripple since 2019 like Ria Money Transfer, and now MoneyGram. Ripple has invested more than USD 50 million.
Ripple Aims to Replace SWIFT and Targets Banks
Ripple is looking into replacing SWIFT and targeting banks. The banking institutions do not trust Bitcoin, and its decentralization aspect that much and varied that there is no leader to Bitcoin. Ripple meets the requirement of banks that own a network and reassures centralization because they are aware of this operating method. Ripple is not fathomless like Bitcoin to the centralized world as it is perfect for banks. It’s extremely low fees are too appealing to banks.
Ripple Can Also Be Used by Individuals
Ripple is focusing on the banks. Shortly, it will provide fund transfer services to individuals, also. For instance, A friend living in the US can send money to his mate in Australia with minimal transaction fees speedily. They can exchange the XRP for US dollars or Euros. Ripple is developing a mobile-based banking platform to store fiat currency and XRP tokens directly. Similar to Stellar – Blockchain will provide banks in time to come to the unbanked.
The Future of Ripple
Ripple’s potential is not limited to the banking sector but extends to money transfers, and now it is aiming at individuals. RippleNet has made it possible to run a high-performing payment business providing the most advanced blockchain technology. It is aiding global payments that allow the financial institutions to reach new markets globally and get rid of pre-funding with its XRP using RippleNet’s On-Demand Liquidity facility. Ripple is building an inclusive financial system providing more services to individuals and SMEs.
Ripple seems to be the future of banking services for global needs as far as money transactions go. It is a better choice for money transfer companies and individuals with its unparalleled speed, extremely-low transaction fees, and its reliability on being a centralized system. Already more than a hundred banks are in association with Ripple. It has a great future, and it will not be a surprise if it replaces SWIFT. Therefore, go through XRP Predictions to learn the future price updates of this coin properly to invest in it at the right time and further get huge returns.