Ripple or RippleNet is an Internet-based real-time gross settlement (RTGS) system that is aiming to revolutionize our payment systems. The Ripple platform includes an open-source distributed Internet protocol, consensus ledger and a native cryptocurrency called XRP.
The main thing that sets Ripple apart from all the other cryptocurrencies is that it is not just a cryptocurrency. It is more than that!
For a generation that lives and breathes in technology, our payment systems are still something from the last century. We have hardly made any progress in the field of payment processing.
Suppose Mukesh who lives in India wants to send some money to Alice who lives in the US.
Generally, Mukesh has three choices – bank wire the money to Alice, use a person-to-person money order service like the Western Union or use a payment gateway like PayPal.
Now in all of those cases, the fees are not negligible amounts. Also, these payment solutions are not real time at all; they take anywhere between 3-10 days to process. Now you may argue that PayPal is real time. Yes, PayPal is somewhat real time.
I’m saying somewhat because, although the amount reaches the PayPal wallet instantaneously, withdrawing the money from PayPal wallet to your bank account takes time.
And this is where Ripple comes and sets itself a class apart from all the blockchain based protocols.
Solutions And Services Provided By Ripple
Launched in 2012, Ripple is not only an RTGS network but it also provides currency exchange and remittance services. RippleNet provides mainly three types of solutions right now. Banks can process cross-border payments for their customers using RippleNet’s xCurrent solution.
While traditional bank wire service uses a handful of intermediaries to process overseas payments, Ripple allows two banks to connect with each other without any intermediaries.
Using Ripple’s blockchain banks can offer competitive transaction fees as well as currency conversion fees.
Ripple uses a dynamic currency conversion technique that allows Ripple to always offer the lowest exchange rate.
Suppose I am paying with INR and the end party only accepts USD. In that case, Ripple will find the best conversion rate for INR-USD pair. It may directly convert the INR to USD, or it may convert it the INR to GBP and that GBP to USD, depending on the final exchange fees.
Currently, Ripple recognizes a few fiat currencies like USD, GBP, EUR etc, commodities like gold, silver, platinum and a handful of popular cryptocurrencies like BTC, LTC, the native cryptocurrency XRP etc.
Ripple transactions are very fast – in general, it takes only about 5 seconds for a Ripple payment to go through. You don’t have to take my word for it, try sending XRP to your friend or to an exchange, you will see.
Currently, Ripple can also process 1500 transactions per second, a number that is 500x higher than Bitcoin’s TPS. RippleNet also has the ability to scale this even further and reach as much as 50,000 transactions per second.
Partner Banks And Companies
Huge corporates and banks have realized that Ripple has a lot of potentials. So they have partnered with Ripple to become a part of this mission to revolutionize the global payment system. Popular banks like Standard Chartered, RBC, SBI, Axis have already partnered up with Ripple.
Just a few days back Axis bank revealed that their RippleNet connection with Standard Chartered and RakBank of UAE is up and running.
Not only this, corporate giants like Accenture, Deloitte, Santander, UBS, UniCredit etc are also supporting Ripple.
I have listed down all the known and active partnerships down below:
- ATB Financial
- Axis Bank
- Banco Bilbao Vizcaya Argentaria (BBVA)
- BMO Financial Group
- Cambridge Global Payments
- Canadian Imperial Bank of Commerce (CIBC)
- CBW Bank
- CGI Group
- Cross River Bank
- Davis + Henderson (D+H)
- Fidor Bank
- Mitsubishi UFJ Financial Group (MUFG)
- Mizuho Financial Group (MHFG)
- National Australia Bank (NAB)
- National Bank of Abu Dhabi (NBAD)
- Royal Bank of Canada (RBC)
- SBI Holdings
- SBI Remit
- Shanghai Huarui Bank (SHRB)
- Siam Commercial Bank (SCB)
- Skandinaviska Enskilda Banken AB (SEB)
- Standard Chartered
- Star One
- Credit Union
- Tas Group
- Temenos Group
- UniCredit Group
- Volante Technologies
- Westpac Banking Corp
- Yantra Financial Technologies
- Yes Bank
The banks and companies listed down below are also experimenting with the RippleNet:
- Aeon Bank
- Aomori Bank
- Ashikaga Bank
- Australia and New Zealand Banking Group (ANZ)
- Awa Bank
- Bank of England
- Bank of the Ryukyus
- Bank of Yokohama
- Chiba Bank
- Chugoku Bank
- Commonwealth Bank of Australia
- Daiwa Next Bank
- DBS Group Holdings
- Fukui Bank
- Gunma Bank
- Hachijuni Bank
- Hiroshima Bank
- Hokuriku Bank
- Hyakugo Bank
- Iyo Bank
- Juroku Bank
- Keiyo Bank
- Michinoku Bank
- Mizuho Financial Group
- Musashino Bank
- Nishi-Nippon City Bank
- North Pacific Bank
- Oita Bank
- Orix Bank Corporation
- Resona Bank
- Royal Bank of Scotland (RBS)
- San-in Godo Bank
- SBI Sumishin Net Bank
- Senshu Ikeda Bank
- Seven Bank
- Shimizu Bank
- Shinkin Central Bank
- Shinsei Bank
- Sikoku Bank
- Sony Bank
- Sumitomo Mitsui Trust Bank
- Suruga Bank
- The 77 Bank
- The Daishi Bank
- The Nomura Trust & Banking Co.
- Tochigi Bank
- Toho Bank
- Tokyo Star Bank
- Tsukuba Bank
- Western Union
- Yachiyo Bank
- Yamagata Bank
- Yamaguchi Bank
Future Of Ripple
In my humble opinion Ripple is the future of payment processing and overseas transactions. Banks and corporate giants are already trialing Ripple’s blockchain technology to minimize transaction costs and maintain a trustless distributed ledger.
Unlike most other cryptocurrencies, Ripple is PoS based which means it requires validators or forgers instead of miners. This list of validators includes top ISPs and even MIT. Plus, being PoS based makes operating Ripple environmental friendly too.
The native cryptocurrency of Ripple, i.e XRP is also showing very promising figures. Currently, it has a market cap of $10 billion which makes it the 4th popular cryptocurrency in terms of market cap, just after Bitcoin, Ethereum and Bitcoin Cash.
If you’d like to know more about XRP and my predictions regarding it for 2018 then check this post – Prediction of Ripple XRP.
If you would like to know more about cryptocurrencies in general and learn how to invest in them then please read this article – Fundamentals & Investments in Cryptocurrency.
And as always thanks for reading. I hope I was able to answer all your questions!