Tammy Broccas January 6, 2019
ripple payments

Ripple is an online, decentralized currency exchange, real-time gross settlement system and a remittance network Ripple is an alternative to the current troublesome and expensive banking system which works across the borders. The company was determined to get rid of the notorious money exchange rules and the huge transaction fees. Processing delays, lack of transparency and the most ridiculous of them all, higher currency exchange rates are eliminated by Ripple.

Ripple payment protocol focuses on bringing together payments providers, digital assets exchange, corporates and financial institutions such as banks. Contrasting with other popular cryptocurrencies such as Ethereum and Bitcoin, Ripple has its goals clear. A basic infrastructure aimed at optimizing the world payments process.

In addition, Ripple has partnered with partnered with high profile companies such as Google. It also works with Gateway whose mandate is to facilitate customer deposits in several currencies such as Euros and US dollars.

Unfair advantage

Unlike other cryptocurrencies and payment networks, Ripple has a very different strategy which leaves them outstanding. Ripple’s technology facilitates payments using the existing financial systems. It therefore doesn’t compete with the existing financial institutions. They both operate with a symbiosis relationship. Due to Ripple’s support of multiple digital currencies, inclusive of fiat currencies, the members are not required to convert their local currencies into Ripples.

Sitting on top of the already existing bank technology, Ripple complies with privacy, risk and regulatory requirements. Payments via Ripple either go through or fail (Settlement Risk). This competitive advantage makes Ripple an efficient and effective payment network amidst the many payment platforms.

What is Ripple capable of?

There are no restrictions from a central authority since Ripple protocol is open source and its network’s shared ledger is open to the public. Any user can create a wallet or monitor network behavior; thus anyone can become a market maker. With this possible, there is reduced competition and increased uptake of the services which makes the network useful to everyone.

The concept behind Ripple Payments

a. A sender specifies an amount and a currency that the recipient should receive.

b. Ripple converts the sender’s currencies automatically. A user may have support of various currencies and thus Ripple will only convert the available currencies at the time of the payment. This is made possible by the integration of the distributed order books into the Ripple protocol.

c. Independent third parties provide liquidity in the order books because they act as market makers. Through the use of a pathfinding algorithm, Ripple’s users enjoy the lowest…
 

Discover more on this website

5 things you might not know about owning an RV Nothing beats hitting the road with an RV. Without a doubt, a road trip won’t be complete without a vehicle to help you explore and spend some quality time with your family. Before you visit an RV dealer, there are important ...
What happens to your credit card debt when you die... Have you ever wondered what would happen to credit card debt if you die? Do your spouse, kids or relatives inherit your debt? Or does your debt die with you? According to Credit Cards NZ, a New Zealand credit card comparis...
Classical vs acoustic guitars – which is rig... There are many people interested to learn guitar, but cannot decide the one to learn – Classical or Acoustic! Both the instruments tend to appear the same and it is quite obvious that same songs can be played on both of them....
5 DIY generators for running small appliances There are many reasons why someone would want to build their own DIY generator. Maybe they think that modern society is about to crumble and they want to be ready with a contingency plan for producing power. Maybe they live s...

Leave a comment.

Your email address will not be published. Required fields are marked*

Pin It on Pinterest

Share This