Ripple is an open-source and real-time gross settlement system (RTGS), currency exchange and remittance network. It was first released in 2012, with some interesting features that make it a more attractive option than the usual cryptocurrency we see today.
In this article, we discuss the advantages of using Ripple to transfer money between individuals and businesses, mainly because the transactions take much less time compared to Bitcoin transactions, which can take over an hour before confirmation and have transaction fees that can be extremely high at times.
Ripple’s low fees and faster transaction times are ideal if you’re looking to send money overseas quickly.
Real-time gross settlement
Ripple is not only a cryptocurrency, it’s a payment protocol. The coin associated with it is actually just one of many currencies that can be exchanged using RippleNet for payments. So if someone asks about how to buy XRP or how to use XRP, you should tell them how to use the protocol as a payment gateway.
All kinds of currencies can be traded through Ripple, from USD and Euro to Bitcoin and all sorts of others. Because there are so many options available when choosing your currency, users have great flexibility in making their payments when they use any number of these gateways that accept XRP.
Low transaction costs
In addition to traditional fiat currencies, Ripple supports any asset that has a value, such as commodities (gold, silver), other cryptocurrencies and loyalty points. The transaction cost for XRP is only 0.00001 XRP or $0.00000546 at its current rate, making it one of the cheapest cryptocurrencies around.
Transaction speed: Another important feature is that each transaction takes only a few seconds to process and confirm, regardless of how large it is. This is much faster than other major cryptocurrencies, such as Bitcoin, which can take up to an hour to confirm a transaction.
Centralized systems are prone to failure and are vulnerable to hackers, so it’s not surprising that many businesses have begun migrating their transactions and data to a decentralized system. Businesses have also realized that using new technology can avoid some costs associated with traditional financial systems.
One such example is security. Businesses can reduce their vulnerability to cyberattacks by using blockchain technology while simultaneously improving efficiency.
In addition, companies can build their own applications on top of a decentralized network without needing permission from anyone else in order to do so. The distributed nature of open-source code reduces overall risk while increasing transparency and security.
Traditional payment systems rely on centralized networks and can take days to process transactions. With XRP, settlement occurs within a few seconds. This means that you can send money immediately to anyone in any currency-and it’s fast and free.
Unlike traditional currencies or assets, there are no bookkeeping fees. This saves money for banks and other financial institutions (which use XRP) as well as end-users who can send payments faster with lower costs involved in terms of transaction fees.
Since XRP is digital and instant, these features are ideal for B2B cross-border payments, especially wire transfers that often require international bank approval before they can be initiated- not to mention they still take 3–5 business days to settle.
With various institutions, corporations and individuals using XRP, it has universal appeal and global reach. This means your business will be connected to other businesses and other individuals around the world, creating opportunities for your firm to do more with less effort.
Because XRP is independent of any company or government, its value cannot be manipulated by a third party. Suppose you’re looking for financial freedom and independence while still being able to do business with anyone in any part of the world. In that case, XRP might be right for you.
And if you’re interested in using XRP as a tool for transferring money internationally, where can I buy xrp? You can purchase XRP from a variety of exchanges like Poloniex or Binance. It’s important to do your due diligence before picking an exchange.
While other cryptocurrencies may offer advantages in certain areas, Ripple is unmatched in its potential to change international commerce and banking. The more than 100 financial institutions (and growing) that have adopted Ripple’s distributed network can attest to how beneficial it is to use XRP and its accompanying platform.