Ripple is a global payment network, enabling any currency anywhere in the world to be sent within seconds, with a fairly affordable transaction fee. The Platform set out to rival older model international money-sending systems such as SWIFT or Western Union.
Currently, Ripple is working with dozens of banks around the world to offer a more efficient and cost-effective way to make real-time payments. These banks are located in Akbank.
Let's continue by giving a hypothetical example. For example, you want to send money from Turkey to Nicaragua. TRY / NIO is not a common form of payment. For such a money transfer, the individual or bank must first convert the try to USD and then the USD to Nio. Sending money at every step becomes more costly and time consuming.
Using Ripple, a person or bank can convert the try to XRP and then send the XRP to the final buyer. The last recipient also converts the XRP into his own currency, and the money transfer is complete. Using a Ripple wallet, an individual or bank in Nicaragua can easily convert XRP into Nio. In other words, the XRP represents a process that allows one currency to trade easily and quickly against another currency.
In general, banks are not in much of a hurry to use the platform. Even so, there is no doubt that real-time global payments will become a standard for the current banking system in the future.
Banks that use the Ripple platform have a huge advantage over banks that do not use it, and financially Ripple focuses on “Value of the Internet” i.e. “the value of the Internet.” This means that sending money has to happen as fast as sending information in the current technological age.
With Ripple, people don't have to pay high transaction fees, and most importantly, they don't have to wait for days for international money transfers. To make the best comparison for this, we can address the email with Ripple. Why can't you send someone an e-mail that reaches them in a matter of seconds, but you can't send them money?
Ripple's basic principle is to ensure international money transfers in real time.
While large investors can invest directly in Ripple, smaller investors and speculators can only invest in XRP. The XRP is Ripple's currency and has been valued significantly over the past few years.
This enormous increase in value is due to the speculative interest of both banks and investors in Ripple. Right now, Ripple has the most valuable cryptocurrency after Ethereum. XRP is the second-largest altcoin.
As mentioned above, XRP provides seamless global trading from one currency to another at very low cost. You can see that XRP is the currency of the Ripple platform, which allows people to exchange any currency and then send it to other people around the world. The person who receives the XRP can then replace the financial institution or company with a currency of his or her choice.
XRP increases its liquidity and value due to increased demand every time it is replaced by a random currency. In other words, we can say that Ripple is trying to make the XRP a kind of global reserve currency.
Although sending XRP is the easiest and cheapest way to send money through the Ripple protocol, at some point there may be no need to convert XRP into another currency. If people and banks decide to convert fiat currencies to XRP one day and start using only XRP without ever using fiat currency any more, there will no doubt be no need to convert XRP into fiat money and its value will increase.
The goal of the platform is to make the XRP a stable currency that does not change much per day, or even hours, or even minutes. So banks can use the currency without fear of volatility. As it is now, banks have no direct interest in XRP because the cryptocurrency can experience very large fluctuations on the day.
To help banks and payment providers, Ripple is engaged in significant collaborations with companies such as BitGo to reduce these risks and increase the chances of using XRP by banks.
XRP's long-term value appreciation is an ultimate gaming strategy of Ripple, as it manages a large portion of the current XRP. This actually means that XRP is a bet and Ripple is a gamble too.
We can point out that the platform is extremely reassuring given that it provides consulting services to financial institutions and provides insurance when necessary. In other words, Ripple doesn't have a volatile place in Fintech and banking.
XRP has a number of advantages as it has in other cryptocurrencies. Ripple's main advantage is that he can work directly with banks.
While anyone who has moved away from banking cartels and monopolies would not want to invest in Ripple, it is certain that if it were to happen, Ripple would focus on smart business decisions by working with the companies that run the global banking industry.
For investors looking to take advantage of his hard work to build a Global Solutions Network in the future, it is highly likely that XRP will struggle for stable value growth, Ripple said. Put simply, you can enjoy rises such as 10x and even 100x in the long run just by buying XRP.
The Platform is extremely fast. Operations take place in under four seconds. In other words, assuming that both the buyer and seller are using Ripple, it is extremely easy and quick to use it to purchase everyday products and services.
Unlike Bitcoin, Ripple is regularly scalable (scalable) because it regularly handles more than a thousand transactions per second. There are times when Ripple handles more transactions than Visa, even when it is over 50,000 per second.
Bitcoin is a big payment method, but like Ripple it doesn't offer a quick way to send money from one person to another.
The costs of sending money in bitcoin are higher, according to Ripple, because more transactions are taking place on the Blockchain. Sending money with XRP is relatively cheap. The Ripple network also does not run more slowly due to the fact that more transactions are performed, such as in Bitcoin.
The main purpose of the platform was not to develop a platform that cost an enormous amount of electricity, such as the Bitcoin mining process. To prevent mining, the entire 100 billion XRP was removed from the beginning so that mining could not be done.
In many forums, cryptocurrency investors say they think Ripple is central. But Ripple is working hard to change that. Ripple is becoming increasingly decentralized with the variety of validator nodes on the ripple Consensus Ledger (RCL).
In fact, Ripple claims to be less central than Bitcoin at the moment. One of Ripple's biggest advantages is that he works with banks around the world, at least for investors and speculators. Let's not pass without saying that banks will probably work with the XRP cryptocurrency instead of Ripple and Bitcoin.