What Does The ripple Currency Do?
As you may have heard by now, the ripple currency is a new technology that aims to revolutionize the way people trade the money we already have in the global market. It uses a technology called XRipple Currency. The goal of the developers is to provide an online method that will allow individuals all around the world to trade with one another and create liquidity that will go unmatched anywhere else in the financial markets. But how does it work?
XRipple Currency was developed by a group of financial institutions, including the Reserve Bank of India and the Central banks of Australia, New Zealand and Singapore. All these international banks realized that they could make the money markets run more smoothly by using the same currency. In doing so, they can also be the ones to control the supply and demand of this virtual currency. In other words, by making their customers use this method of payment when they make transactions, they can increase their own profits and decrease the costs and risks of their activities in the financial markets. What makes XRipple Currency so special is that it can make real-time trades, settlements between individual users without having to involve any third parties.
However, there are several types of currencies and they include the traditional ones as well as the newer ones. The most popular ones in the market today include the Euro Xchange, the Swiss National Bank franc, the Australian Dollar, the Canadian dollar and the New Zealand Dollar. Since they are not centralized in any way, each of them still has their own disadvantages and strengths. The developers of the ripple cryptocurrency therefore decided to combine these currencies into a single platform, which they call the ripple protocol.
Even though some might disagree, it is important to note that this system actually makes more sense than the current system of cross-border transactions. The problem with the traditional system is that it is based on physical money transactions between banks. While this method has become highly efficient, it is prone to fraud and has been the cause of many scandals. This is because all transactions are recorded in the ledger of the banks, which are totally separate from each other.
With the ripple protocol, however, this type of transaction becomes possible and this means that there will be no need for physical currency exchanges. In fact, the cryptologist behind the project, Brian Keelan, has pointed out that it is impossible for two parties to have direct dealings with each other if the currencies being exchanged are not of the same type. Therefore, the only thing left for the currencies to do is cross Border transactions through the use of the XRipple Cryptocurrency.
This means that there is no need for banks to be involved in any way, since all the work would be done by the users themselves. The biggest advantage that the XRipple Cryptocurrency has over the traditional form of cytotechnology is that there is no cap on the amount of money that one can transfer. If the amount is too small though, the person could end up spending most of the money he has transferred, since there would be no mechanism that would allow him to check if his transaction was a success or not. On the other hand, with the traditional currency system, failure of a transaction could result in a major loss for the investor. Since the ripple protocol is not limited in any way, this would not be a problem in the slightest.
However, there are also some problems that the XRipple Cryptocurrency has to face, which are very much similar to other forms of Cryptocurrency in the sense that they also need to have a strong network in order to gain the necessary traction that is needed in the market. It is for this reason that the banks are not promoting the use of the ripple protocol by the general public. This is because they feel that it will take away from their business interests. Even though the ripple network is not that big in scale compared to the total market cap of the different currencies, it still has a lot of power and it can easily surpass the top three financial institutions, which is the NYSE, NASDAQ, and the London Stock Exchange. But having a high market cap does not necessarily mean that it will be able to dominate the entire market, especially with the growing number of small businesses that are constantly coming up.
One way that the ripple protocol can possibly impact the future of the XRipple Cryptocurrency is if the banks somehow manage to corner the market, and force people to use the XRipple Cryptocurrency. If this happens, there would be no other option but for the public to switch from their current currencies to those of the banks, since they would have lost all their money in the process. Although it is entirely possible that the ripple network will not have the power to completely take over the financial market, it is also true that the protocol has the potential to dominate all other currencies in the future as long as it continues to gain more momentum. In the end, this would spell the end of the existing global currency systems and the birth of a new XRipple Cryptocurrency system.