Ripple, the company behind the blockchain-based XRP token and the XRapid liquidity service, has announced that three of the top five money transfer services will incorporate the token this year. They did not state which one. Prior to this, the Mexican fiscal services firm Cualix announced their use of it so far (not necessarily one of the three mentioned).
3 of the top 5 global money transfer companies plan to use XRP in payment flows in 2018. Even more in the pipeline. https://t.co/5JOlxe20Ur
— Ripple (@Ripple) January 5, 2018
Ripple is a financial solution provider that provides the XRP-powered XRapid liquidity service, which is designed to facilitate faster global transactions between banks and other financial institutions. It also claims to lower transaction costs via the help of their network RippleNet. XRP is a cryptocurrency-like token, but isn’t used as a standalone currency.
Cryptocurrencies like Bitcoin have long been proof of the concept that blockchain-based currencies can make international transfers extremely fast and cheap. Ripple is a relatively new player, and it differs starkly from Bitcoin because it is more centralized in nature and is designed for banks, rather than as a replacement for banks.
RippleNet now has at least 100 member companies.
Also Read: The How Bitcoin Works article explains the basics of how Bitcoin works, and the decentralized nature of its design.
XRP is also owned and operated by a corporation (Ripple), rather than by a global network of independent miners. The other cryptocurrencies on the market, including the big players Bitcoin, Ethereum, Litecoin, among many others operate entirely without banks due to the fact that they store wallet information on the blockchain.
Bitcoin-like and Ethereum-based cryptocurrencies are digital and have no physical representation, making it easier to transfer funds around the globe without engaging in foreign currency exchanges such as USD to AUD, Yen to Euros, etc (unless you want to convert them to a national fiat currency such as the US dollar).
There are no Chinese Bitcoins or XRP tokens, or British tokens, all Bitcoins and XRP tokens are the same, regardless of country, providing a level of convenience and freedom that society is just not accustomed to. The complexity of overseas transactions is a long-standing issue that affects everyone, and will continue to if improvements continue at a snail’s pace.
What would be interesting is if Ripple’s newfound fame and highly efficient technology convinced the world that blockchain-based cryptocurrencies are a suitable replacement for banking. Banks are adopting a technology that may bring about an end to their business model. Either way, the world will benefit from cheaper global transactions!
Ripple is now competing with Ethereum to become the second largest token (by market cap), as cryptocurrency investors have been buying the XRP tokens. Some Ripple investors have seen gains even greater than they could have with Bitcoin over the course of last year, making it the best-performing cryptocurrency of 2017. However, it has been highly volatile.
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