Ripple is a distributed finance technology that enables banks to send cross-border payments in real time across global networks. Ripple was developed in San Francisco by a cryptography team led by Brad Garlinghouse.
How does Ripple work?
Ripple is classified as a crypto-money. It can be used to transfer funds anywhere in the world to those using a global settlement network. Unlike Bitcoin and Ethereum, who rely on the PCs of a typical average consumer for peer-to-peer transaction confirmation, Ripple works with banks to provide them with a cheaper, safer and less regulated way to send money around the world.
This process makes existing systems with SWIFT and other money transfer payment systems such as Western Union and Moneygram look like Cold War relics. It also eliminates the costly and time-consuming currency exchange that sometimes has to be done if the money has to be sent to countries whose currency is not easily convertible.
For example, it is not possible under the existing banking conditions for the money transfer from Brazil (shipping country currency: Brazilian Real) to Zambia (recipient country currency: Kwacha), without a financial intermediary to transfer. The Brazilian Real (BRL) must be exchanged for the US Dollar and then for the US Dollar in Zambian Kwacha. This process is expensive for the sender and sometimes for the receiver, due to exchange rate fluctuations or extra costs that may be incurred for the money transfer and could reduce the expected amount. Also, the associated administrative burden increases the cost of shipping. With ripple as an exchange, a transfer can be carried out seamlessly and without exchange rate fluctuations, since ripple currency (XRP) would indeed be an acceptable medium of exchange for both sides. The sender can easily switch BRL to XRP and the receiver could simply receive XRP in his ripple wallet and swap it for Kwacha.
Banks are taking over this technology quite slowly, for obvious reasons: the central banks and the regulators that regulate the banks are not all that worried about the loss of their regulatory stranglehold on the banks and the loss of their control over the monetary system based on fiat money excited. However, there is no doubt that fiat money, like companies like Kodak, which became obsolete by the mobile phone camera revolution, will soon make room for digital currencies like XRP, or even disappear completely.
It is already possible to trade ripple and other cryptocurrencies, such as fiat currencies, in the Forex market. So what can slow down the acquisition of XRP and others, such as Bitcoin and Litecoin, as a means of exchanging goods and services? Just the time. In addition, nobody wants to wait several days for a transfer, or expect extra waiting time for weekends and holidays. If ordinary mail paves the way for emails, traditional bank transfers can also pave the way for instant bank transfers via the ripple platform.
Ripple Trading for Money: The Basics
The price of Ripple had to be tied to some basic factors, one of which is probably the general correlation of ripple to the prices of Bitcoin and Ethereum. However, this may not be the only significant factor influencing the ripple price.
Ripple is intended for the use of banks, any message of its adoption into a new major bank, a recognition from a major bank or central bank, or extended use of existing bank customers, could be a trigger for
Price movements will be. The ripple platform is already being used by some of the world's largest banks, such as Banco Santander and UBS. According to Ripple, a cost savings of $ 3.76 per payment can be achieved by using the XRP platform unlike traditional transactions. For the banks, which handle up to ten million transactions per year, this represents a considerable cost-saving potential. Reducing costs and increasing revenue are two areas banks are focusing on to improve their revenue base. Ripple is thus a great opportunity for the banks.
