✔️ Information reviewed and updated in April 2024 by Pedro Martínez González

One of the most common success formulas in the business world, and especially in technology, is the union of the traditional with the new as Ripple did. The operation is simple, it is about taking something that already exists, incorporating technology, innovation and improving it, while maintaining its essence.

Among all the cryptocurrencies that we can find in the market, we have Ripple, one of the virtual currencies that has surprised the most in terms of its value offer. Here we find the union of the traditional with the digital, that is why here we will tell you what all that is about.

➡The concept of Ripple✨

If it comes in the beginning Ripple was born as a software focused on solving problems of transactions or money transfers between banks. Today Ripple has become a platform that mixes the ability to make traditional bank transfers with the world of cryptocurrencies.

For this, Ripple has its own cryptocurrency known by its abbreviation as XRP. Through the use of cryptocurrency technology Ripple allows transactions with lower operating and service costs, greater speed and also, better capital management, making processes more efficient.

This decentralized system operates through different protocols and algorithms along with Blockchain technology to support it. This makes operations here not only simpler, it also makes them safe. You will not have to worry about hacking issues or security breaches.

One of the great advantages that Ripple has over other competitors is the fact that this platform has experience in two sectors. On the one hand, you have the knowledge of having collaborated with the traditional banking system. On the other hand, you have your own cryptocurrency and you know how the virtual world operates.

➡Differences between Ripple and Bitcoin✨

• Bank acceptance: While banks are not very fond of cryptocurrencies, at Ripple we find the exception to the rule. And it is that this cryptocurrency has a generalized acceptance among banks, which gives it much more support and also value.
• Interbank payment system: Another great advantage is that, due to this acceptance, Ripple has created an interbank payment system. This platform called Global Payments Steering Group (GPSG) allows making payments between users of multiple banks such as Bank of America Merrill Lynch, Santander, Standard Chartered, Westpac Banking Corporation, Royal Bank of Canada or CIBC.
• Services for banks: Ripple enjoys great prestige because this platform offers different technological solutions to banks. More and more institutions rely on this ecosystem to reduce the time it takes for their transactions to be carried out. This does not happen with Bitcoin or Ethereum.
• Number of transactions: Bitcoin only allows a maximum of 6 operations to be carried out every second, on the other hand Ripple has the capacity to carry out up to 1,500 transactions. This means that it is equal in capacity to other payment processors such as Visa in transaction volume.
• Mined: Another clear difference that we see is that Ripple does not accept the mining of its cryptocurrency XRP, this because the platform controls their issuance. To avoid a flood and imbalance, Ripple is responsible for releasing a certain amount of tokens to the market each month.
• Alliances: Finally, you should know that Ripple maintains alliances with banks and financial institutions. This causes the value of the currency, at least indirectly, to increase. In the same way, you have the backing of knowing that this platform has the Ok of many international banks.

➡The operation✨

Like most cryptocurrencies, Ripple works with a chain of blocks or Blockchain. Each transaction becomes a block which records all the information of the movements. After each transaction is confirmed, it joins a chain of blocks. The difference is that the Ripple Blockchain is exclusive to this platform.

Instead of operating with securities, here we find that the operation of the Blockchain is carried out through IOUs, a kind of crypto promissory notes. A system known as payment gateways is used to transmit the actual values ​​behind these promissory notes.

Another feature to take into account is that Ripple operates under an algorithm known as Ripple (called SHA-512) which works through a consensus system which is based on a decision tree. This system makes the approval of transactions faster by favoring the Ripple coin in its transaction with other currencies.

Within the structure of the Blockchain, it is worth noting that each of the users forms a node. Each of the nodes join the network, their main task being to act as a kind of local exchange system.

➡How can we use them? ✨

As we already told you, Ripple has alliances with major banking institutions around the world. Visa and American Express are a perfect example, since these companies have begun to develop payment methods based on the Ripple Blockchain to be able to use these tokens.

Little by little Ripple becomes one of the most accepted virtual currencies when making payments and transactions. The inclusion of a hybrid banking system between traditional and digital currencies helps Ripple to be much more used every day. Similarly, every year we find new banking alliances.

➡Is it worth it? ✨

Due to the great potential that Ripple has, without a doubt this is one of the best options on the market. We have a cryptocurrency which operates with its own Blockchain and the latest in banking integration technology and transaction improvement.

Its volume of transactions equal to Visa, as well as it has important alliances with banks such as American Express. All this gives us an overview of the promising future that Ripple may have if it manages to integrate the traditional banking system with the future of cryptocurrencies and payments in a virtual way based on Blockchain.

About the Author: Pedro Martinez Gonzalez

I'll tell you a little about myself! I am a financial analyst and economist with a master's degree in finance.
About my studies: I studied at the University of Salamanca for a Degree in Economics and then did a Master's in Finance in Madrid.
Do you want more information? You can read more about me here in my biography.

You can read more about me here.