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Importance of Ripple Payment Protocol

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Bitcoin is a cryptocurrency, and it is widely used in the decentralized form where a public ledger is maintained as the records. This general ledger is called blockchain that records all the account transactions. Similarly, Ripple is a cryptocurrency that holds a little different to that of Bitcoin. The Ripple Company maintains the currency exchange and other network related services. Its first initiation was in the year 2012 and since then proves to be secure in making instant and free financial transactions without any chargebacks. It also comes in the form of tokens representing cryptocurrency. Like the Bitcoin, the ripple is also based on a public ledger system which facilitates any exchange or payments easily.

The cryptocurrency is attracting more investors these days in India, and among this the best known is Bitcoin. The ripple falls in the same category. There is no necessity for any capital investment in these transactions. At present, the price of ripple is experiencing an increase in comparison to Bitcoin and dollar. In this system, foreign currency is the primary concern.

Companies using this latest technology

Companies who have adopted the ripple technology are UniCredit, UBS or Santander. This technology helps in the banking networks allowing free transfer and exchange of funds. This ripple is known to be the first functional blockchain in history. Despite too many obstructions in its way, it is one of the widely used technologies among the financial institutions. The ripple works with the aim to route every transaction at the lowest price possible in the market.

Banks using ripple

The institutions take the ripple technology as a significant advantage when the banks can use XRP. Apart from these transactions, there is a ripple application. The ripple is designed to integrate various payment systems, and it works via the ripple application programming interface.

The increase in the ripple price is due to the currency’s use by the financial institutions. With the help of this API, the bank sends the currency to another financial institution without the involvement of any intermediaries. The required software is installed in the bank’s infrastructure that shall help them to carry out the function easily. According to the present scenario, there are more than 75 banks and other financial institutions who work actively on ripple’s network.

On the contrary, it can also be said that ripple is not restricted only to the banks. This ripple program is open to individuals for their use. Other platforms that can use the ripple technology are Coinbase, Bitstamp, and Changbelly. The ripple technology also helps for stability and increased use of Bitcoin in the long run. Thus, both the technologies promise secure transactions in the future.

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Joel is an entrepreneur specialized in the international business development and project management. He graduated from Indiana University’s Kelley School of Business with a degree in Finance and International Business. He is currently working on decentralized autonomous organization (DAO) along with TechRar.

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