What is Ripple XRP coin – Ripple price prediction?
Ripple also denoted as XRP (Or Ripple XRP can be mentioned simultaneously) is a real-time, global settlement network that modernizes cross-border payments. It was introduced in 2012. Originally named OpenCoin, renamed to Ripple Labs in 2013 and settling on Ripple in 2015, the company behind Ripple XRP coin is one of the first five to receive a BitLicense in New York.
Note – Overall growth in Ripple XRP price has surpassed Bitcoin price growth before the start of 2018.
Ripple is headquartered in San Francisco (US) and has offices in New York, London (UK), Australia, India, and Singapore. Ripple is a privately funded company. Google Ventures, Seagate Technology, Accenture, Bitcoin Opportunity Corp & Standard Chartered are some of the major stakeholders in the company.
Just like other cryptocurrencies, Ripple XRP coin also uses the blockchain technology. However, unlike other cryptocurrencies, it is regulated and facilitates fund transfer for banks.
How does Ripple blockchain network work?
Ripple XRP blockchain network is different than other cryptocurrency blockchain network. The Ripple network offers three key solutions to customers.
xCurrent is Ripple technology which eliminates the need for disparate, centralized networks.
Instead, xCurrent offers one, connected, decentralized global payments network –built around the (ILP) open source Interledger Protocol – which enhances access, speed, certainty and lowers cost.
Access to the Ripple XRP blockchain is easy because the global network can be entered at a single point and all participating financial institutions operate on one set of rules, the same format, and standardized governance protocols.
The speed of global payment processing is revolutionized by the use of a single carrier; the Ripple network enables banks to transact in seconds instead of days.
Leverages Ripple technology for corporates, payment providers and banks who want to send payments across various networks using a standard interface.
The Ripple XRP API is a simple Application Programming Interface (API) which requires no software installation and enables users to seamlessly send payments globally -with transparency into the payment status- and with rich information, like invoices, attached.
Built for enterprise use, Ripple XRP offers banks and payment providers a highly efficient, scalable, reliable liquidity option to service cross-border payments.
Transactions using Ripple are instant – they settle in less than 4 seconds; they are scalable – the XRP Ledger using payment channels can scale to handle over 50,000 transactions per second; low cost – each XRP transaction costs $0.0004 in network fees on average
Ripple XRP coin as a global payment system network
Not only is Ripple a coin of value, but it is also a payment processing system that is meant to overthrow the current incumbent system serving banks ever since 1973, the SWIFT system.
For example, say if you have sent money abroad, you have used a SWIFT service.
SWIFT is an entity with a monopoly on border transfers. Thus Ripple XRP coin can be said as SWIFT and the Western Union competitor.
According to the Ripple CTO ( Chief Technology Officer) Stefan Thomas:
“Ripple provides one frictionless experience to send money globally using the power of blockchain. With RippleNet, financial institutions can process their customers’ payments anywhere in the world, instantly, reliably and cost effectively using just one API.
Ripple is the only blockchain network with real customer. We’ve signed deals with over 90 customers globally and over 75 customers are in various stages of deploying Ripple for commercial use”.
If we simplify it then the main goal of Ripple is to be a global settlement network, a platform to allow anyone to transfer money in any currency to any currency in a matter of seconds. This is an ambitious goal meant to eliminate the use of older systems like the Western Union or SWIFT.
Ripple is working with some of the biggest financial institutions around the world. Ripple XRP coin aims to power the whole financial sector by making instant transactions possible at a fraction of the current costs. It provides a frictionless experience for global fund transfer using the blockchain technology.
In future, it is expected to act as a liquidity solution for the cross-border transactions. Banks and Payment Providers can use Ripple XRP coin to settle multi-currency transactions to minimize the overheads and break the monopoly of SWIFT which is most prominent international fund transfer payment option hence, ultimately increase in Ripple XRP price.
Current international fund transfer system has two major flaws. Firstly, a typical remittance transaction costs $5.
Secondly, transfer needs to be planned in advance, since it will take a long two to four days to reach its destination, with many hiccups possible by the multiple third parties in between.
What Ripple coin is bringing to the table is a consensus-based ledger protocol that can exchange currency in real time. Ripple can process 1500 transactions per second, which is huge as compared to Bitcoin or other cryptocurrencies as Bitcoins can handle up to 7 transactions per second.
Indeed, VISA can handle more, about 2,000 transactions per second, but Ripple uses blockchain. Therefore, there are other added benefits, most important security. Considering banks in the US alone lose about $10 to $15 billion a year in credit card fraud. Hence, such compromise seems to be quiet reasonable.
It is for this reason that Ripple coin has been adopted by UBS Bank, Axis Bank, and more than 100 other financial institutions have signed on to Ripple’s blockchain network, and they intend to use it should blockchain technology become embraced hence Ripple XRP price will touch the sky.
For instance, last year, Ripple announced the setup of its first interbank global payments group, which included big-name banks like Bank of America Corp (NYSE: BAC), the Royal Bank of Canada (TSE: RY).
Investors like Michael Arrington have also just announced the creation of a hedge fund XRP Capital which will help to increase the credibility, ultimately ripple coin price. In fact, some eastern European countries like Belarus has accepted ripple coin as a payment currency.
Ripple XRP coin price prediction – 2020
At the time of writing this article, the single Ripple coin price is hovering around 0.70$ and 0.90$, which is TRIPLE what it was two weeks ago. With that said, there are plenty of reasons to believe that the Ripple price should keep appreciating for the near future.
Over and above, there have been rumors that Coinbase, the famous cryptocurrency exchange, is planning on adding Ripple to its list of tradable coins come mid-2018. Hence, it won’t be too optimistic if Ripple XRP price reaches 2$ at the end of 2018 and 5$ at the end of 2020.
Besides the adoption of Ripple by banking and financial institutions, it is already among the most popular cryptocurrencies and in the top 5 according to market capitalization. Considering that it is still so relatively cheap, that makes it all the more attractive to investors who may be intimidated by bitcoin’s huge price tag.
Note – Overall increase in Ripple XRP price has surpassed Bitcoin price growth of 2017-18
According to Mr. Tomas, money should be fast processed and transacted as fast as data is going around the world. This is exactly what is Ripple capable of. Mr. Thomas further adds:
“Because XRP has a clear use case. It is one of the largest digital assets by market capitalization. It is designed for use by financial institutions as an on-demand liquidity solution for cross-border payments.
For example, payments into emerging markets can require multiple currency traders — added costs — or pre-funded local currency accounts — which often results in the trapped capital. Instead, payment providers and banks can use XRP to fund these payments on demand, without intermediaries, at up to 60% less cost to settle.”
You must remember that the main use case for Ripple, as a system for global payments among banks, it may take some time. Therefore, Ripple is more suited to the long-term investor than a speculator interested in quick profits
Ripple coin has a definitive edge over current fund transfer system with both real-time transaction settlement and low fees with added security. The average exchange takes 3.5 seconds on the Ripple network today, with a current average transaction fee less than a penny.
Not only, transaction fees much lower to convert from one currency to Ripple XRP and back, but transfers take a maximum of 4 seconds to execute and verify, and on top of all Ripple uses Blockchain which provides an extra layer of security.
Given its advanced technology and reliable infrastructure, Ripple XRP price is expected to shoot past several other cryptocurrencies, and as more and more banks adopt this technology, then the sky is the limit.