Ripple. The first banking blockchain
Ripple is a system based on the blockchain. It applies in the banking sector, which significantly improved banking operations, scaling them, providing them with additional protection, reliability and reasonable cost.
The existing service was created by several banks in order to improve the executing transactions. But due to the fact that transfers outside this scheme involve intermediaries from the outside, the operations become risky. But Ripple copes well with these problems. Innovative technologies are not used by all, but such banking institutions include Santander, UniCredit, Islamic Bank, Al Rajhi Bank.
The system is relatively new, but it is already among the top ten in terms of daily volume. In a few months, its price has grown many times, and investing today $ 1000, you can get 5700.But even more you can earn on Bitcoin, buying it now, while the price is profitable. You can buy it with a 10% discount.
On the online exchange, Ripple is known as XRP. It is a payment protocol that performs the functions of a payment system. At the heart of Ripple is the formation of blocks, which makes it the first distributed exchange system. All changes in the register are due to reaching an agreement.
A bit of history ..
Ripple was created in 2004, when Ryan Fugger first developed RipplePay. This direction developed slowly but surely, due to which in 2016 the first record values were reached, which, probably, were not evaluated by the market at first.But over the past year the situation has escalated even more, and already in 2018 the changes could not go unnoticed. A huge boost to this was provided by an investment of $ 55 million from reputable enterprises, among which was Google. In summer the system was licensed for carrying out transactions using cryptocurrency. Due to this, a group of well-known world banks such as Bank of America, Uni Credit, Merill Lynch organized their group called Global Payments Steering Group. It is known that in early 2017 it was agreed to cooperate with the National Bank of Abu Dhabi, which is considered one of the most ambitious capitalization in the United Arab Emirates. This suggests that more and more financial institutions will switch to this technology, so forecasts for it remain optimistic.
Advantages and prospects
Every day an increasing number of banking institutions implement Ripple in the system. As a result, they can achieve more inexpensive payment services performed in any size. This will increase customer loyalty, gain new revenue opportunities, and reduce transaction processing costs.The advantages include high speed of operations (up to 1500 transactions per second can be performed), acceptable cost, real-time traceability of funds, and direct settlement between banks.
It is worth noting that the system has been working in the legal field for a long time, therefore all operations are performed according to the law. About 0.00001 XRP is charged for each operation in the system from the participant. This fee is the protection of the entire system from a huge number of transactions. At the same time, the work model is deflationary, despite the closed code.To summarize, we can say that in reality, the benefit of Ripple is high-quality translations that enable banks to much faster and better serve customers using innovative methods.