Why Ripple can become a “special” one?
Recently, Ripple has gained popularity in the crypto industry. The company’s ambitions and aims are serious since the cryptocurrency platform for payment systems is ready to make a revolution in the banking sector.
The system exists since 2012, but even then many skeptics did not pay enough attention. By nature, Ripple – is an alternative to the famous payment system SWIFT, however, Ripple is based on the open database, uses the alignment process, which allows making an exchange in the distributed process. The cryptocurrency in its network is XRP. Put simply, Ripple – is a basic infrastructure technology for a process of bank-to-bank transactions or a utility for financial institutions and systems.
A tidbit for investors?
Undoubtedly, the concept of Ripple has attracted the attention of many investors and most importantly – international banks or financial institutions. Nowadays, more people are eager to explore the blockchain and such interest is very logical. There is a new worldwide trend – big investors want to fund various startups, which can bring many benefits to any industry.
Ripple’s team since its launch continues to surprise and it appears on XRP’s price. In that juicy moment, when Bitcoin has reached its historical maximum, XRP’s price has inched up to $2,78. That was a good sign of Ripple’s potential. Moreover, XRP has appeared on the famous crypto exchanges, launched a conference in Toronto and made successful negotiations with investors from South Korea and Japan. All these facts only increased the confidence in Ripple’s idea. Before it hit the maximum in January 2018, there were made successful tests of transactions between Japan and South Korea. It just confirmed the fact that a system has a great chance to replace SWIFT in the banking sector, but not all are ready to accept this idea completely.
Already in 2018, 160 banks successfully testing Ripple’s system – xRapid, giving positive feedback.
Promising investment or temporary hype?
As it was mentioned above, XRP price has an interesting history. Since its launch, the cryptocurrency price was $0.06 and remained unchanged for a long time. When a famous “surge” in the cryptocurrency world took place, XRP has gained to $2,78. For the first time, many experts and analytics were on the subject of Ripple’s potential in a serious way. The only important thing, which discourages many crypto-enthusiasts to invest in XRP – is the fact that the company holds 60% of all XRP. Naturally, it is disturbing. However you must understand, Ripple has a good policy in negotiations with top banks and once financial institutions will make a move, XRP holders will notice the serious movement. And as you know, in the cryptocurrency the sky is a limit.
Some Nuances of the Ripple network
In this regard, the scandal around Ripple co-founder Jed McCaleb should be mentioned. This situation has shown a “thin” detail of the Ripple network. Apparently, a company can freeze any accounts, which contain XRPs. There are two ways: they can freeze an account of a concrete user or make global freezing. At one time, a company has mentioned this opportunity and later described a full process.
The future of the banking sector in Ripple’s hands
Today, Ripple’s prospects have some serious grounds for investors to consider a partnership. At least, the technology of a company, mainly xRapid. The main feature of this technology is the usage of XRP. Such technology can allow many companies to make international payments and transactions with increased speed and minimum risks. Those who tested this technology has proved that the transaction costs are decreased for 50-70% and the overall speed is only a few minutes. Such improvements may decrease the volatility risks of many futures. On the annual Swell conference, Brad Garlinghouse has announced that some payment systems already use Ripple’s technology. Among them are Mercury FX, Catalyst Corporate Federal Credit Union, and Cuallix. The latter make transactions from the US to Mexico by using XRP as a liquidity resource.
Time will give answers to all questions. Now, we can endlessly analyze and discuss this topic, but a key factor will be the adoption of this technology by any major bank. Will it launch XRP to the moon, we will see it in 2020