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Ripple (XRP coin) – The Future of Banking?

What is Ripple?

XRP is a cryptocurrency created by Ripple Labs INC, which was founded in 2012. The company was founded by Chris Larsen and Jed McCaleb. McCaleb is the person behind the popular Bitcoin Stock Exchange MtGox (which he later sold to Mark Karpeles). He later left Ripple to launch a new cryptocurrency called Stellar Lumens (XLM). The CEO of Ripple, Brad Garlinghouse, has previously worked as Senior Vice President of Yahoo. Chris Larsen is still on the Board, and currently works as the Executive CEO.

XRP / Ripple is aimed at banking and finance, with over 100 confirmed partnerships with financial institutions. It is important to note that many of these institutions have confirmed that they use Ripple Technology, and not XRP; It is possible to make use of Ripple’s technology without using their cryptographic XRP, and this is what SBI Holdings and American Express have confirmed that they are using.

Santander is one of the companies that originally had no intention of using the coin, yet it was recently announced that they will be utilizing Ripples Global Payment option that utilizes XRP. The main reason for this is that this alternative is significantly more cost-efficient.

The XRP coin has consistently been featured in the top 10 on coinmarketcap for a long time. The coin is currently the third most valuable cryptocurrency, with a current value of $0.51 per token, with a market cap of $20.4 billion, only two billion USD below Ethereum. In December 2017, the market cap reached $130 billion when the price went from about 25 cents to over 3 dollars.

Generally speaking, the increase in price was huge in 2017; It started the year with a price under one cent and ended the year around 3 dollars. That’s an increase of several thousand percent! The first major increase was from less than a cent to about 40 cents in the spring before it fell to about 20 cents. The second major increase was as mentioned in December when it went from 25 cents to about 3 dollars.

Simply explained, the purpose of XRP / Ripple is to increase transaction speeds for foreign transfers. Using the XRP and / or Ripple technology, it is possible to transfer any amount from, for example, Norway to Japan of approx. 5 seconds. This happens because the transactions go through Ripple’s Interledger Protocol (ILP).

As mentioned above, the entire process illustrated above only takes a few seconds, which is why this cryptocurrency is aimed at banks; It would have been possible to send money from a bank in a country to a country in another contingent within a few seconds. Something that is much faster than the current SWIFT system, where a country-to-country transaction takes a couple of days.

The actual XRP coin does the same as ILP does, but Ripple claims that it saves the banks 30% to use XRP instead of just ILP. To ensure the adoption of XRP, Ripple’s plan is primarily to first get the financial institutions to use ILP, and then tell them that they can save 30% by using XRP as well. However, big questions are asked whether this plan will succeed, or if the XRP will eventually collapse after it is not used. What is certain, however, is that Ripple Labs INC will succeed regardless of how it works with XRP.

In the cryptocurrency communities on the web, XRP is extremely controversial, for several reasons. The most important thing the coin originally was not decentralized, which goes against the basic ideology behind cryptocurrency. It should be noted that Ripple has all along claimed that it will be decentralized in the future, and in August the CTO claimed that the Ripple ledger had become fully decentralized.

Another controversial theme is that the founders of Ripple took 20% of the pre-mine for themselves; it is not possible to mine XRP in the same way as you can with, for example, Bitcoin or Ethereum. All coins were created at the same time before it was placed on the market. Of all these coins created at the same time, the owners took 20% to themselves, this has made Ripple founder Chris Larsen the world’s 5th richest man on paper, with a fortune of the size of Mark Zuckerberg’s.


• SWIFT system: As of today, this is the biggest player in the market that Ripple tries to hijack. They have more or less had a monopoly since the 1970s, although Ripple hopes to replace if optimal adoption occurs.
• Stellar Lumens, also known as XLM, is a so-called “fork” of Ripple. This is the project of Jed McCaleb, one of the founders behind Ripple. The biggest difference is that Stellar is non-profit and decentralized, while Ripple is not. Another important difference is that it will be possible to drive ICO’s at Stellar. They are currently also in the top 10, with a market value of almost 14 billion dollars.


  • Possible to send funds in seconds.
  • Cheaper for banks than today’s solution (SWIFT)
  • Possible to buy for money directly and not just through cryptocurrency pairings

Recommended Crypto Exchange Where You Can Buy XRP:

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