Having skyrocketed into one of the top ten cryptocurrencies with relative ease, Ripple has hit the market cap by force, hitting out against what it considers outdated banking networks. The protocol was birthed out of the idea to counteract the slow end process that continues to frustrate customers of financial institutions worldwide. Ripple currently boasts the number three spot on the coinmarketcap, and the fact that more financial institutions are adopting Ripple puts them in a strong position for growth, this in-spite of their currently low unit price of $1.18.
The appeal of Ripple as opposed to Bitcoin centers around the large and heavy blockchain, the fact that Ripple depends on a distributed ledger that verifies mining community, and significantly reduces the amount of electricity needed to operate the network. Trusted validators are mandated to confirm transactions before they are processed. When a number of these validators have come to an agreement, the transaction can proceed.
How Ripple is Upgrading Banking Networks
AS previously stated, the company sees the current banking networks as outdated, unable to cater to the needs of consumers in contemporary society. They have already received the baking of several major financial institutions like Bank of America, and Merrill Lynch who have already signed up to the Global Payments Steering Group, allowing for easy payments between banks. In short, this, the Ripple payment protocol will effectively allow for faster and easier transfers, ultimately making banking more efficient.
Bridge Currency – Its Value Explained
The first advantage to consider is how easy it now is to convert to Ripple XRP to be used in a distributed ledger. This provides many advantages to the system. First, it open the door for foreign trading currency exchange. Where in many cases less prominent currencies would not be able without great effort to find a trading partner, now they simply use Ripple, making the currency easily available for future transactions. Trades also no longer have to take place at the same time. Major forex trading pairs also present no problem for the cryptocurrency, and its by far the most cost-efficient option, all this due to the nature of the XRP as what is termed a bridge currency. The protocol allows for speedy transition between fiat currencies. Larger institutions and hedge funds render liquidity for the process. Individuals who work in foreign countries will now be able to easily convert funds back into their own currencies from their country of origin, all thanks to Ripple.
The Ripple is Imminent
Earlier in January 2018, we’ve already seen the price hit highs of $3.65, despite the value dropping back somewhat (even though currently its still five times higher than what we saw in December), if cryptocurrency has taught us anything, expect the unexpected, expect the seemingly impossible. With the backing of several major banks, and growing, Ripple is clearly enjoying, currently, the most success within major financial institutions, these citing the several features and a changing world-financial-system.,some of these features include: being the speed at which these transactions can take place,security etc. Even forex jumped over the fence, as it will soon be using another trading platform in the form of Ripple.In addition to these institutions giving their backing, It will be at affordable price, allowing people to invest in smaller quantities, a major selling point.