RippleNet: The first thing that needs clarity is that Ripple is both a platform and a currency. The platform is an open platform which is designed in such a way that allows fast and cheap transaction. Unlike Bitcoin which was never intended to be a simple payment machine, Ripple is definitely in future going to rule all the transaction worldwide. Nobody is aware of the future and may be and may be not, anything can happen. May be currency exchanges may cease to exist in a few years just like Blockbuster stores did. The platform has its own currency (XRP) but also allows other parties to create its own RippleNet. RippleNet is a network of institutional providers such as banks and other financial institution that use solutions developed by Ripple to provide a frictionless experience to send money around the world.
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It will be better be explained via an example: Let’s give an example: Firstly, Mr. Jones lives in New York and has a chocolate box he doesn’t need. He is very interested to watch a baseball game, but doesn’t have a ticket. Secondly, Ms. Smith lives in Los Angeles and has a rare stamp she would like to give away for a chocolate box. Lastly, we have Mr. Brown who lives in Alaska and is looking very much for a rare stamp, and he a ticket for a baseball game in New York. In the current scenario these people would probably never find each other and never would come but in the Ripple world they can fulfill their requirements and needs. Moreover the platform allows payments to happen in all the currency that includes Bitcoin and other types of Cryptocurrency. The platform only charges a minimal amount of Commission. The commission charge is only $0.000001. This is quite unbelievable but yes it is very minimal amount that the platform charges.
XRP is token that acts as a go between the traditional fiat currency and the more advanced and technologically sophisticated Cryptocurrencies. XRP is token used for representing the transfer of value across the Ripple Network. If you want to exchange or convert dollars to euros or vice versa or the same currency this can be done via using the ripple network. As mentioned above the transaction cost on Ripple is $0.00001. The protocol as a working prototype was created way back in 2004. There is a huge benefit for using Ripple. The first being it charges extraordinary low currency exchange as there are many currency that cannot be directly converted and banks and other financial institutions have to use the US Dollar as mediator. So there is a double commission: converting currency A to USD and then USD to currency B. RippleNet is also a mediator but is much cheaper than the USD.
Image Source: ripple.com
The second advantage of using the platform is the fast transaction time which is around 4 seconds which when compared cryptocurrency like Bitcoin takes hours. And when in comparison with traditional banking system which takes often takes days. The next advantage is the payment ecosystem. The users and customer of can issue their own currency for fast and cheap transaction. For example, one can create a currency to and sell their own products and services among them. There a lot of banks and financial institutions that have started accepting Ripple as a payment platform. Ripple is a good investment and going by the utopian view there is nothing called a safe and secure investment.
Source: Coin Telegraph
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