Ripple (XRP) – The Currency Transfer Solution for Global Payment Providers

XRP is one of the cryptocurrencies floating around on CoinMarketCap among a plethora of others. But there is a major difference behind the vision that it follows and the others. While bitcoin seems to be aimed at becoming a global digital currency, Ripple (XRP) wants to provide the world with a global financial money transfer framework.


RippleNet is the major framework presented forward by the company Ripple. It provides the banks and different payment providers across the world with a fast, secure and trusted fabric to transfer money globally. The target audience of Ripple largely seems to be banks, payment providers and digital asset exchanges.

In the modern world, sending money across the globe is still a very hectic procedure which often takes days to complete. Besides, the costs associated with sending money worldwide is on the upper end.  A high fee is charged by the parties in between. Ripple wants to make inter-bank communication and transfer across the globe easier.

SWIFT is the most commonly employed framework for inter-bank communication across the world right now. Ripple seems to be more than capable enough of replacing it in the future through the employment of the advanced blockchain technology.

As mentioned on the official site of Ripple, some of the most famous customers of Ripple right now include Standard Chartered, MoneyGram, MUFG bank and many more. RippleNet essentially provides these financial institutions with a smooth, fast and secure payment pathway.


The cryptocurrency that is used in the Ripple ecosystem is XRP. It essentially acts as an intermediate currency. It represents value in the Ripple ecosystem. It can be used an equivalent representation of fiat, or another cryptocurrency, in the Ripple network.

Global payment settlements that are made using XRP occur much faster rate than either BTC or ETH. Bitcoin settles payments in around an hour while ETH does so in around 2 minutes. Ripple, on the other hand, settles its transactions in 4 seconds. This provides a very fast and efficient payment method at the disposal of its customers. No need to wait 3-5 days to get the confirmation of your global payment. With Ripple, you can do that in 4 seconds.

Ripple Consensus Protocol Algorithm (RCPA)

Unlike the major cryptocurrencies like Bitcoin and Ethereum, Ripple does not use the proof-of-work (PoW) framework at its core. This eliminates the overheads of mining from the ecosystem established by Ripple. Mining costs are taken out of the picture.

Consensus is required in the Ripple network to finalize a transaction in the network. It is different from PoW or PoS. Instead of miners, the nodes involved in the Ripple network are called validators. Validators have the task of validating the transactions in the network. No competition for mining is there. Once consensus is achieved in the network, the ledger maintained by every validator node in the network is updated. It becomes the Last-Closed Ledger which maintains trust in the network. Last-Closed Ledger is the current state of the network.

Each node in the network also maintains its open ledger which contains transactions given to the server by the end users of that node. Although, these transactions are not considered final until they are processed through the network and are ratified by the consensus protocol of Ripple. More details regarding this protocol can be found here.


Some cryptocurrencies cannot be converted into one another directly. They have to be first converted into US dollars, which are then converted into the respective cryptocurrency as desired. A lot of overhead costs are associated with this whole procedure. XRP can serve as a mediator between these two cryptocurrencies at a much lower cost.

Since no mining is involved in the Ripple framework, a lot of electricity is saved. In networks which involve mining, usage of electricity is becoming a major issue. The bitcoin network right now is already using more electricity than the country of Ireland.

The transaction rate in XRP is also very high. 4 seconds are very low for global money transfers as compared to the traditional sources currently available.

Ripple surely does possess the potential to incorporate itself into the global financial framework that is in place right now. If communication between banks is made so much faster across the globe using ripple, ripple might be in for a roller coaster ride ahead.

The Team

Here’s the team behind Ripple.


SEE ALSO: Ripple XRP: A Centralized Cryptocurrency in A Very Decentralized Space

Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: or

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