What is Ripple and why it will be huge?steemCreated with Sketch.

in #bitcoin7 years ago

Today Apple has introduced the Payment Request API for payments in the Apple Pay mobile payment system using the Interpedger protocol from Ripple. Payment request API supports various payment methods in a variety of browsers using a standard API. According to Apple technology will enhance the usage of cryptocurrencies. After that news Ripple has grown for more than 9% according to Coinmarketcap.com (source: https://cryptocrimson.com/news/apple-payment-request-api-ripple-interledger-protocol).

So what is Ripple and why does it costs 1,5 billion dollars? Technically Ripple is a cryptocurrency but it’s very different from the typical cryptocurrency. Ripple is an open payment network within which that currency is transferred. Like other cryptocurrencies, Ripple is built atop the idea of a distributed ledger network which requires various parties to participate in validating transactions, rather than any singular centralized authority. Unlike other cryptocurrencies, XRP transfers are effectively immediate, requiring no typical confirmation time (source: https://www.digitaltrends.com/computing/what-is-ripple/).

The company building the Ripple protocol, OpenCoin, was co-founded by CEO Chris Larsen and CTO Jed McCaleb. McCaleb is well-grounded in digital currency, coming from Mt. Gox, which currently handles the majority of the world's bitcoin (source: https://www.coindesk.com/10-things-you-need-to-know-about-ripple/).

The a real nice example how Ripple works that. Consider this scenario: Alice and Bob need to send some money to each other. Alice uses Jamaican dollars (JMD) to conduct her business, while Bob operates in Bangladeshi taka (BDT).

While it might not be evident to end users, the process behind Alice sending Bob money involves converting the JMD to a common currency like USD, then transferring the money between Alice’s bank and Bob’s. Finally, the USD in Bob’s bank is converted back to BDT.

This incurs a lot of fees at every exchange and wastes a lot of time. The Ripple network and currency aim to fix this problem.

The alternative Ripple proposes is the use of XRP as a common currency underlying all money transfers between different currencies (USD is currently the most common currency). Not only are transaction fees much lower to convert from one currency to XRP and back, but transfers take a maximum of 4 seconds to execute and verify.

Quite a few global banks have already started embracing Ripple as it saves them a lot of money in the long run by avoiding exchange fees (source: https://www.finder.com/ripple).

So Ripple helps companies’ safe money on transactions and enhances the efficiency of transactions. The future is after Ripple.

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