Ripple is a real-time gross settlement system (RTGS), currency exchange and remittance network

Country: USA

Year: 2012

Concept

  • Ripple is a real-time gross settlement system (RTGS), currency exchange and remittance network built using distributed ledger technology
  • Ripple’s aim is to enable “secure, instant and nearly free global financial transactions of any size with no chargebacks”
  • Banks and other financial institutions such as UniCredit, UBS and Santander have started experimenting & integrating with Ripple’s settlement infrastructure technology
  • As of 2017, Ripple’s XRP is the third largest cryptocurrency by market capitalisation, after Bitcoin and Ethereum

Consumer Benefits

  • Real-time payments: global payments are finalised in a few seconds (and is therefore faster than Bitcoin)
  • Global reach: borderless transactions without exchange fees
  • Traceability: ledger technology keeps a trace of all payments
  • Reduced costs: of transaction settlements compared to traditional means
  • Automated: Ripple allows automated scripts (e.g. if A only receives 50% of its target amount of €1000 by the end of the month, the 50% collected will be automatically returned to the original accounts
  • Scalable: unbounded transaction volume capacity

How To Use

  • Ripple offers a couple of different solutions to FS players:
    • Interledger Protocol (ILP): all banks and payment providers can use this to transact securely across currency
    • Ripple Connect: the platform connects FS ledgers that use ILP for real-time settlement of cross-border payments. It also provides a way for banks to exchange originator and beneficiary information, fees and the estimated delivery time of the payment before it is initiated

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