Ripple (XRP)

Feb 12, 2018 at 9:19

Ripple aims to provide a frictionless global payments scheme through a blockchain network and its own digital currency XRP.

The company was co-founded by Chris Larsen (a Stanford M.B.A. and veteran Silicon Valley operator) and Jed McCaleb (who has been with Japanese bitcoin exchange Mt. Gox) in 2012 to revolutionize international payments systems.

It claims that the current global payments system is currently marred by delays, limited transparency and high costs.

Ripple want to break this through its RippleNet, which will connect banks, payment providers, digital asset exchanges and corporates to seamlessly send money globally.

To support a decentralized global network, Ripple offers three products: xCurrent, to process real-time payments; xRapid, to give access to an on-demand liquidity pool of digital assets; and xVia, to send global payments with a single integration

It boasts of quick processing time, taking only four seconds compared with the the three to five days in traditional systems.

This is being done by having customers use XRP in inter-border trading and payments. Through XRP, Ripple introduces the interledger protocol to settle accounts across two banks differing ledgers, which translates to faster settlement times.

For example, a US bank would have to trade its USD to XRP first then convert it to the fiat currency of its partner bank, let’s say in UK.

Ripple has created 100 billion XRP, of which 80 billion was given to Ripple Labs. Ripple Labs, in turn, intends to circulate 50 billion XRP and the remainder to fund its operations.

So far, it has over 100 customer and 75 commercial deployments, including the Bank of Tokyo-Mitsubishi UFJ, RBC, Santander, Standard Chartered, Credit Agricole, Westpac, Axis Bank, UBS, SEB, SBI Remit, UniCredit, and BMO.