In one of the recent developments surrounding the Ripple, they have opened a shop in the financial capital of India, Mumbai. And, those of you who don't know this is a very strategic move from Ripple since India is the world's largest remittance receiver.
India is the largest recipient of corporate and retail remittances worldwide, totaling close to $71 billion…Ripple’s instant, cost-effective blockchain-powered payments can be a transformative component of India’s economy, helping bring the many who have limited access to payments services into the fold. - Navin Gupta
What is really nice is that stars are finally aligning for Ripple, and not only I am relatively optimistic on its fundamentals but I also believe Ripple can turn out to be an awesome investment idea that could really pay off in the long run.
“Given its status as the fastest-growing major economy in the world and the top market for remittances, India is a very important market that is ripe for payments innovation,” Brad Garlinghouse (Ripple CEO)
If we look at the market cap Ripple is standing at the fourth most valued cryptocurrency in the world and I can see why. Not only has it been adopted for quite some time but it's definitely being adopted by corporations as well and not just being simply in existence for a long time.
If we look at the current market cap Ripple is sitting at almost 8 billion in valuation. We can see the volume is nice and consistent and the circulating supply is a little over one-third of its max supply of 100 billion.
What is Ripple's Objective?
In the world of banks and huge lending institutions, money transfers happen day by day and it's a global network of the transaction which tends to be tedious, slow and expensive one at that. Finance industry transacts billions of dollars between different channels around the globe and it can take days upon days to get the settlement through. And not only that there's a lot of high fees, it's unreliable and it's inefficient. It's a market that needs to be fixed.
Because of the depleting bottom line, banks have no option but to cut down cost, they are trying to cut down their transaction fees, they are also trying to cut down the transaction time. This is what Ripple is trying to fix.
“With businesses sending more than $155 trillion of cross-border payments annually, it is crucial that we continue to innovate to make international payments easier and faster not just for our clients but also for the future of the payments industry.” - Gautam Jain, global head, digitization and client access, transaction banking at Standard Chartered
If you guys still didn't get what Ripple is from the above explanation I recommend watching the below video to get a really good visual representation of what technology Ripple has and its objective.
Technology
To make a breakthrough in the existing financial system Ripple has a very modern system in place which is known as RippleNet. So this what they use in the sense of blockchain technology to make fast, quick and easy transactions at a cheap cost. In terms of access, they make sure that you can access the technology on multiple platforms from multiple banks and on across electronic platforms like your phone, tablet or computer. Along with that, the speed is quick guys, they have stated that it takes around five to ten seconds to send a transaction and they can do thousands of transactions any given second. That I believe is really immense and it's definitely enough to meet the need for global markets.
There's certainty in the transactions that are made which means which means a transaction will not say it's confirmed unless it is confirmed on the blockchain. They have check and balances system on the blockchain like most other cryptocurrencies to certify transactions. And last but not the least the biggest selling point that is going to attract business partners into this is the reliability of the cost. The cost is much lower than any normal bank transfer transaction
One of the good thing about Ripple is that the above-mentioned points aren't the only bits of technology that Ripple is offering through its blockchain technology. Some of the other key features of Ripple are mentioned below:
xCurrent is more focused on the finance side and it facilitates instant settlement of cross-border payments and end-to-end tracking of the transaction.
xRapid is mainly for financial institutions with sole purpose to minimize liquidity costs and at the same time improve customer experience
xVia facilitates sending payments across various networks using a simple API and it can be used by corporates or banks.
Conclusion
Ripple has already got a lot of support from some of the financial giants and with how early this is it is really amazing to see big names taking it on and it shows that Ripple already has use cases for it. Ripple is backed by good leading industry professionals who have a done a great job so far to make Ripple stand out and have made rapid advancements as far as adoption is concerned.
Ripple is trying to cut down costs, reduce time wastage and at the same time, it cut downs the middleman who used to make profits in this whole transaction process. It is bringing the one-to-one connection between users and corporate finance individuals through the blockchain.
I hope you guys found this post useful. Please comment below and share your thoughts about Ripple or any other blockchain technology you think can do better than what Ripple is trying to achieve.