Ripple is a business that operates a payment network RippleNet and uses a cyber currency called XRP and it is one of the biggest cyber currencies in the world.
This cyber currency is designed for enterprise use rather than for the public.
It claims to offer banks and payment providers a reliable, on-demand option to source liquidity for cross-border payments.
There’s also the claim that It’s the fastest and most scalable digital asset, enabling real-time global payments anywhere in the world.
How does Ripple work?
RippleNet makes it easy to transfer almost any currency to almost any other currency in the world. Ripple claim this can be done in 4 seconds which is much faster than Ethereum and Bitcoin.
Using Ripple, if you wanted to transfer currency directly from China to the USA, you could trade CNY to XRP and then send XRP to the recipient who will have an online Ripple wallet or a bank in the USA. From there, they can trade the XRP into USD.
Ripple claims banks can save an average of $3.76 per payment using their network.
XRP has risen in price from under $0.01 to over $1 a coin in under a year, with it valued on December 29, 2017 at a high of $1.50.
XRP’s increase in value may be connected to the astonishing rise in price of Bitcoin. XRP also has a new partnership with credit card company American Express, who are looking to offer instant block-chain based payments and this contributes to market confidence.
The global market is currently valued at around $488billion, Bitcoin accounts for about 40 per cent of the daily turnover and Ripple accounts for 4 per cent. But some experts believe it will enjoy a larger boost in value in 2018.
Ripple does have serious investors working with it, including Santander InnoVentures, Andreessen Horowitz, Accenture, Google Ventures and Standard Chartered.
Cyber currencies are risky as the price is volatile but the future does seem to increasingly likely to be cyber currency.
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