Ripple (XRP) is a real-time gross settlement system, currency exchange, and remittance network. It has the third-largest market cap of any digital currency, and a passionate base of Twitter followers. Recently, the cryptocurrency partnered with a number of different financial organizations and institutions, including MoneyGram, FDT Corporation, Mercury FX, and Western Union. According to the Ripple website, the digital currency strives to bring payments out of the disco era and into the present world where “three billion people are connected online, cars drive themselves and appliances can communicate.” But does it live up to all of the hype? Let’s take a closer look.
How Ripple Transactions Work
Ripple connects banks, payment providers, and digital asset exchanges via RippleNet. Unlike Bitcoin, where transactions are verified through a proof of work process that typically takes about 10 minutes, Ripple transactions are confirmed with a consensus protocol that typically takes 5 seconds. If someone tries to submit the same payment through multiple gateways, distributed nodes decide by consensus which transaction was made first, thus preventing the problem of double spend. Furthermore, the transaction fee, at 0.00001 XRP, is much less expensive than that charged by banks processing cross-border payments.
Ripple has two primary products for banks: xCurrent and xRapid. xCurrent, Ripple’s settlement solution for banks, allows the originating bank, the correspondent bank and the beneficiary bank to use a messenger system to coordinate information between banks, while the ILP ledger uses the interledger protocol to coordinate funds movement.
Meanwhile, xRapid uses the XRP asset to offer on-demand liquidity. Describing xRapid’s functionality, Ripple CEO Brad Garlinghouse said: “The Bank of Andy can sell $1, buy XRP. That XRP can now be moved to an Argentinian digital asset exchange, you can sell the XRP and buy an Argentinian peso, and now you have good liquid funds in less than 10 seconds in another market.”
With the implementation of xCurrent and xRapid, Ripple is striving to transform global commerce as we know it, and a growing number of partnerships indicate that many organizations and financial institutions are on board.
Ripple’s Growing Partnerships
Over a hundred banks are currently using xCurrent, while five customers are currently testing xRapid. These notable companies and institutions include, but are not limited to: money transfer company MoneyGram, currency specialist Mercury FX, telecom provider IDT, and financial services company Western Union. Western Union CTO Sheri Rhodes expressed enthusiasm about experimenting with Ripple’s technology: “We have a strong platform and system that work well today, but we continue to explore and test whether these technologies could potentially reduce costs and improve the customer experience,” Rhodes recently said, indicating that the momentum for Ripple as both a currency and a global payments solution seems to only be increasing.
Ripple in Your IRA
As Ripple continues to establish itself as a cryptocurrency and an innovative global payments solution, it can also be viewed as a strategic choice for those looking to diversify their retirement portfolio with cryptocurrencies. XRP increased by more than 1,000 percent since the start of December 2017, and bestselling author Craig Beck predicts that the by the end of 2018, the Ripple price is expected to bisect the $2 hurdle at least.
Trevor Koverko, the CEO of securities token platform Polymath, recently told Forbes: “People feel comfortable with the name and the security of Ripple. A lot of people are beginning to realize how big of an opportunity there is between business and the blockchain, and that’s making Ripple the early winner here.”
To capitalize on this groundbreaking opportunity to invest in Ripple for your IRA or 401(k) account, give Bitcoin IRA a call today at 877-936-7175.