Bitcoin was the first cryptocurrency introduced to investors. After Bitcoin, many cryptocurrencies evolved; among all, Bitcoin, Ethereum, and Ripple are the top three currencies according to the market cap. Ripple offers a blockchain technology that allows creating and transferring global payments using XRP. The system is so efficiently designed that it breaks all the hurdles that come with currency exchanges, fee structure, and processing delays of the traditional financial network. Ripple enables its users to transfer the amount from different currencies in a fraction of minutes from any corner of the world. This reduces the need for an older system like SWIFT. There are a few terms that are associated with Ripple:
a. XRP – XRP is the name of the native currency of the Ripple network, which helps in a money transaction. It functions as a source of liquidity whenever needed, besides acting as a bridge among the two currencies. XRP is an open-source blockchain that operates on the interface of peer to peer servers.
b. Ripple – Ripple is a firm that designs the Open coin called Ripple Payment Protocol and network. Before Ripple, it was called Ripple Labs.
c. RippleNet – RippleNet is Ripple’s network of institutional payment providers, similar to banks and money services around the world. It unites many types of payment networks like banks, digital asset exchanges, and payment providers and accepts both fiats and cryptocurrencies.
The traditional methods of sending money to different countries are outdated. Ripple solves such a problem by collaborating with financial systems worldwide and offers the solution through blockchain. Ripple’s global network allows financial institutions to process the user’s payments from anywhere cost-effectively and reliably.
XRP has the potential to change the traditional methods of making payments so that it can be a profitable investment. Ripple is backed by many real projects and entrepreneurs, which makes increases the chance of its success in the future. So, adding Ripple to a portfolio for the long term can be a good idea for the investors.