Ripple is claiming to be the new Swift, but is it actually true? Let’s find out if the project is actually capable of competing. 🏆
What is Ripple?
Ripple is a blockchain project launched in 2012 and powered by the XRP Ledger network. All the internal transfers and settlements are carried out using the native cryptocurrency - XRP. The project is aimed at financial institutions and is expected to become an alternative to existing interbank transaction systems such as SWIFT.
When was Ripple created?
The initial launch of the first project iteration named RipplePay.com took place in 2005 and failed with little to no people being interested in the technology by that time. While years passed by, the project didn’t change too much until in 2012 the team was reworked completely and the OpenCoin organisation was created (Renamed to Ripple Labs in 2013). Right on time due to cryptocurrency starting to gain audacity. That same year the XRP Ledger network was introduced. ✅
What is XRP Ledger?
XRP Ledger or XPLR is a decentralised net that works as a core for the Ripple ecosystem. According to the official website, XRP Ledger is highly applicable for in-app microtransactions, NFTs and DeFi protocol deployments, as well as issuing stablecoins and CBDCs. In addition, “traditional” assets such as securities or fiat money can be tokenized using XRPL. 🪙
XRP Ledger is powered by nodes, directed by validators. As of August 16, 2022, more than 130 validators are active in the network, 35 of which are in the so-called Unique Nodes List. This group is responsible for activating the changes that are added to the protocol.
The net uses a unique consensus protocol, named XRP Ledger Consensus Protocol. The advantages of the solution are high productivity with 3-4 second block time and low transaction fees. 🏎
XRP is Ripple’s native coin. 1 XRP can be subdivided into one million units, called drops. For transfers, in addition to the user’s address, the so-called destination tag, generated in the wallet is also required. Storage and transactions XRP is supported by most of the popular multi-currency wallets. 🙌
XRP is used by large financial institution customers for payment bridge transfers and is the payment token in RippleNet interbank communication system currently developed by Ripple. 📶
Altogether, XRP Ledger and other Ripples side solutions like xCurrent (Cross-border payments procession dApp), On-Demand Liquidity (A service for providing liquidity for fiat currency transactions) and xVia (API designed specifically for the convenient use of individual components of the entire RippleNet ecosystem) create the flagship Ripple Labs product - RippleNet. 🌐
A global network for executing cross-border financial transactions, used by banks, payment services and other financial organizations. RippleNet provides users with real-time messaging, clearing and settlement of financial transactions. 💳
The implementation of blockchain into business trends is clearly visible now and RippleNet is another proof of the many companies switching to decentralised nets in the near future. 😉
Stay tuned 📻