Any person who has transferred money through international bank has felt the frustration of having to wait for as a minimum a day and paying huge sums for something that can be done with a click of a button. RippleNet is being used by Ripple to link that opening which offers SMEs a competitive advantage for international payments.
The blockchain firm based at San Francisco has placed on its blog to state that “the world’s payments infrastructure hasn’t changed since the heady days of disco, nearly four decades ago.” Business operations are unreasonably stalled by today’s ancient banking system built upon decades old frame.
Recent days businesses need to have a proposal for days of delays while banks and payment providers personally fund multi-currency accounts and pass the costs and over inflated foreign exchange rates and transaction fees onto their customers. A weighty percentage of the money can be lost sending it from one country to another as it goes through a series of different currencies, making the banks the only ones profiting from each transaction made.
RippleNet fasten transactions, decreases costs, and introduces a level of certainty to global payments according to the company;
“Using RippleNet, banks and payment providers can reimagine a payment from invoice to confirmed settlement for their clients. Just one small change, like the ability to drag-and-drop invoices as part of a RippleNet powered transaction, can have many benefits: it saves time with pre-populated fields, automatically confirms recipients for accuracy, and obtains real-time quotes.”
Developing markets such as Brazil, India, and China where lesser transactions take place will profit more from an international cross-border payments platform that takes less time to complete or cost a heavy percentage of the payment. According to the World Bank global transfer of funds payments will develop by 3.4% or roughly $466 billion this year.
Presently Ripple is at the front position of the industry and has joined with over a hundred banks and payments providers across the globe. It claims that it “connects all parties in a global transaction through a single seamless, frictionless experience. Built for the Internet age, Ripple delivers access, speed, certainty and savings.”
Crypto aficionados and cypherpunks argue that Ripple is as centralized as a bank and will still profit from these transactions. The company, on the other hand, debates the contradictory claiming that the XRP Ledger ‘is based on an inherently decentralized, democratic, consensus mechanism’.
The main point to take note here is that Ripple is the company with products such as RippleNet, xRapid and xCurrent whereas XRP is the ledger at work on blockchain philosophies used by other cryptocurrencies. The greater thing to note here is that the company, or its executives, have a huge amount of these tokens which can enter or leave the market as and when they want to and as a result have an enormous effect on price.
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