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Today, we have got you insights on Ripple, what it is and how does ripple payment work.
The launch of Bitcoin in 2009 paved the way for the emergence of other cryptocurrencies
into markets.
One such popular cryptocurrency which is gaining popularity among crypto users apart from Bitcoin
and Ethereum is Ripple, which was created by Jed McCaleb and Chris Larsen.
Firstly, let us understand what is Ripple?
Ripple, which was first introduced in 2012, functions as a two-pronged technology of being
a cryptocurrency as well as a digital payment method.
Its native token is known as XRP.
It was designed to replace SWIFT which is a popular money transfer network and the settlement
layer of middlemen between leading financial institutions dealing in currencies.
Let us now understand Ripple’s payment mechanism?
Ripple’s ecosystem is designed to make transactions quicker and payment settlement easier for
banks.
Hence, it is very popular among large financial institutions.
Ripple’s blockchain system - RippleNet, provides a number of programmes to businesses
and financial institutions to help settle cross-border payments.
Some of its said programmes include xCurrent, xRapid, and xVia.
Whenever a user makes a transaction on Ripple’s network, a small amount is deducted as fees.
The standard fee is almost negligible when compared to the
large amounts of fees being charged by banks.
Also, here it must be noted that while an average Bitcoin transaction may take many
minutes or hours and has high transaction costs, Ripple transactions are processed within
four to five seconds and that too at a much lower cost.
Ripple has forged a new partnership with QNB or Qatar National Bank for cross-border payments.
On 4th October, the Bank revealed its partnership with Ripple for its global cross-border payment
strategy.
Through this association, QNB will make use of RippleNet, i.e., Ripple’s financial technology
network, and would initially rollout the same in QNB Finansbank in Turkey, with gradual
plans for expansion into other corridors.
With this partnership with the blockchain solutions provider, QNB aims to enhance its
product offerings to its customers, thereby scaling up QNB’s remittance service on Ripple’s
blockchain to venture into additional markets.
That is all for now, hope you found the video informative.
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