23 Jun The rise of the cryptocurrency Ripple
The rise of the cryptocurrency Ripple
Quick transactions, regardless of the currencies and countries involved, and not limited by borders. Only one thousandth of a cent of transaction costs, and the possibility of up to 10 000 transactions per second without the intervention of a third party. We are talking about the spearheads of the Ripple blockchain protocol. To build a bridge between fiat currency and cryptocurrency and thus also countries and banks.
Ripple, like Bitcoin, is made to carry out transactions without the intervention of a trusted third party. Only it is not an open source project. It is managed from a central commercial organisation that has management and development in its own hands. This is also why banks are looking for cooperation with this cryptocurrency. The company behind the Ripple protocol is an partner for the bank. For the banks, a comparable partner within the Bitcoin network, for example, cannot be found.
Ripple has its own cryptocurrency called XRP. All transactions are, as with a blockchain protocol, kept in a general ledger. Because everything can be found publicly in the consensus ledger from the beginning up to the most recent transactions, a new transaction can be validated by the network. It is always possible to find out whether an address from which a transaction must take place has enough XRP to send.
Where banks were initially reluctant to engage in blockchain initiatives (and therefore cryptocurrency), they do see the value that Ripple could have. Many banks are already working with this cryptocurrency, including more than 60 Japanese banks that manage over 80% of Japanese banking assets.
For the banks, Ripple is a solution to better execute fiat currency transactions without replacing currencies. It is a bridge between classic, government-sponsored currencies.
Contact us for more information.