Ripple (XRP) - a cryptocurrency created for ... banks

As a rule, cryptocurrencies are considered competition to fiat currencies and banking systems. Meanwhile, Ripple was created to give bankers new opportunities - real-time settlements in international transfers. The RippleNet network operating as part of the project combines the possibility of exchanging both cryptocurrencies and fiat currencies on one platform. And it is already enjoying great popularity.

We are continuing the Forex Club cycle in which we describe the most popular cryptocurrencies in the world. Today it's time for a technological gem - Ripple.

How does the Ripple signed network work? The equivalent of banking SWIFT is the xCurrent system, which can be integrated with all networks based on blockchainie. However, it allows not only the exchange of traditional currencies, but also real-time transactions carried out in the Ripple cryptocurrency (XRP). It is enough for banks to have an xVia terminal created for this purpose and they can make settlements in the Ripple network.

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Ripple older than Bitcoin

Bitcoin was founded in 2008, while the history of Ripple goes back even further, until 2004. Then it was the Canadian Ryan fugger programmed a system that was to be replaced on a local scale. In 2005, the system was already operational and was to be based on micro-services that offer mutual loans, also known in Poland. In fact, the system did not act as an intermediary in transferring funds, but in mutual financial obligations. This is like paying with a credit card without using cash.

This did not change until 2012, when blockchain technology was already established and it was possible to create your own unit of account for such transactions. That's when the actual work on Ripple started. They immediately focused on solutions for banking. It didn't take long to start cooperation with the first entity. In 2014, it was the German internet bank Fidor. However, a milestone was the signing of an agreement with Earthport, which provides technological solutions for dozens of banks, including global giants: HSBC and Bank of America. The vast majority of banks in Japan also use the Ripple network.

How XRP works

With Ripple you can carry out 1,5 thousand every second. transactions. Such high scalability is possible thanks to the use of the latest technological solutions. These include network gateways that act as intermediaries to speed up transaction authorization. In total, the network can accept up to 50. transactions that are pending execution, which already offers opportunities comparable to Visa. Ripple achieves these values ​​by giving up the holy grail of cryptocurrencies, i.e. decentralization, focusing on the rapid exchange of information between network gateways that act as nodes.

XRP can also not be excavated or otherwise added to the network. All 100 billion units went to the network immediately, but not all of them are in circulation so that they do not cause excessive supply. Every month since December 2017, the market automatically increases by 1 billion. XRP. Their release also depends on market demand. If there are not enough takers, the surplus goes to the pot for the first month after the distribution.

Ripple Quotes (XRP)

XRP, known as the cryptocurrency of banks, arouses extreme emotions in the market. Some believe that this is a project that will revolutionize payments, others say that it contradicts the ideals of cryptocurrencies due to the technological solutions used - mainly by abandoning decentralization.

As of 24.12.2019/1/0,19, 4 XRP costs 2018 USD. The peak of trading was on January 3,84, 43,3, when the price reached $ 8,3. The XNUMX billion units currently in circulation are therefore worth USD XNUMX billion, which places Ripple in third place among all cryptocurrencies after Bitcoin in terms of market capitalization and Ethereum.

Due to its universality, XRP can be bought on virtually all cryptocurrency exchanges in the world.