Ripple: In Short
Although Ripple is considered as a cryptocurrency but it works in a different manner as compared to other cryptocurrencies out there. Ripple is much more centralized. It is a Real-time gross settlement system (RTGS), Currency exchange and remittance network. The Ripple protocol is built on a distributed open source internet protocol. The native crypto-currency is abrogated as XRP (Ripple). It was initially released in 2012. Ripple is basically based on a shared and public database. This network can also operate without the ripple company. Generally, banks are opposed to Cryptocurrencies but ripple is one cryptocurrency banks and payment networks support and are even using it.Many banks and payment services are using ripples such as American Express and Money Gram.
What does ripple CEO Brand Garlinghouse think?
On 5th June at the Money 20/20, Europe 2018 conference Ripple CEO claimed that the XRP transactions were a 1000 times faster and way cheaper than bitcoin transactions.
Garlinghouse said that ripple is more focused on making the cross-border payments more efficient. He said that they use XRP for that part as it is a thousand times faster and more effective than BTC. Garlinghouse thinks that the XRP is the most efficient digital asset. The CEO was asked about his comments on the fact which were publicly pointed out by the CNBC Africa’s show host of Crypto Trader. The show host said that ripple had very limited value at the moment as although ripple has been backed by hundreds of banks, no institution is using xRapid, the only service on ripple net which needs XRP. The
CEO countered with the statement that the first problem ripple focused on was to solve a real-world problem for banks and we have been successful in signing up hundreds of banks using a service which we call xCurrent.
Garlinghouse said that “xCurrent allows two banks to settle in fiat basically in real time.”
He further added that “Today, that takes a day, is very expensive, and has a very high error rate, as high as 6%. So that works when there are two banks that are working together that already have fiat. If we wanted to go to a third bank where we don’t have liquidity, where we don’t have a pre-funded account, that’s where a product like xRapid comes into play. xRapid uses XRP to fund real-time liquidity. So, no longer do I have to pre-fund. There are trillions of dollars parked around the world pre-funded between banks, between corporates, corporates at banks, if we could make those trillions of dollars more efficient, we make the entire global financial system more efficient.”
How is ripple better than bitcoin & other cryptocurrencies?
Ripple is better than any other crypto because firstly the Governance. Governance of all cryptocurrencies is very unstable except ripple. Ripple has proven its governance with validators like Massachusetts Institute of technology, Microsoft and hundreds of banks all over the globe.
As stated above ripple is way faster and cost-effective when it comes to transactions and settlements than bitcoin. BTC settlement takes up to 60 minutes or longer whereas ripple is able to achieve the same in 5 seconds because it relies on a consensus mechanism and not mining.