1. You need send money across the globe
2. So you go to your bank
3. Your bank then takes your money and converts
4. To the “ripple” currency
5. This transaction is the encrypted and sent through peer to peer network called blockchain
6. All being tracked on a ledger by trusted sources
7. Within seconds your money reaches another financial bank across the globe
8. They take the ripple and convert it to their local currency
9. And your friend collects the money
10. This all equals the concept of Ripple
Let us piece this together
You need to send money across the world to your friend, so you decide to go to your bank to complete this transaction, Your bank takes your money in the local currency and converts it into their digital currency “Ripple” (Blue dot) this transaction is encrypted through a secured peer to peer network called the Blockchain where everything is recorded on a ledger. Within seconds the bank across the world receives your Ripple and converts it into their local currency, and your friend collects the money. This all equals the concept of Ripple
At its core Ripple is a digital payment system for financial transactions that also happens to be a cryptocurrency. Also known as XRP
Ripple essentially is selling their technology to financial institutions to leverage it to make faster transactions, currently, the process to send money is slow, and costly due to fee’s that are taken for the transaction.
Ripple has built their platform on being an efficient way to transfer currency no matter what it is from the Yen to the USD and even Bitcoin.
They achieve this by using “Gateway” that is the credit intermediary that allows the currency to be converted into whatever gateway it is running through, for example, if you had USD and someone wanted to collect Bitcoin, then simply runs through the local gateway where it is converted to Bitcoin.
Why You Care
There has been a lot of news about Ripple lately and their value has been shooting up due to their adoption rate with financial markets. Their concept of making transaction faster and cheaper to send money across the world could potentially change the industry up.
But the one KEY thing to remember is unlike Bitcoin this is not something you mine for, this cryptocurrency is released and tied up to the financial intuitions that Ripple does business with.
The Good, The Bad, The Ugly
• Ripple network could change the way we send money, within seconds and at a very low cost (The Good)
• The concept is still being proven and has not been widely adopted yet (The Bad)
• The value that is being associated with Ripple can be seen as overvalued and a bubble (The Ugly)
We here at Orca believe in education and empowerment that leads you to make the right decisions, always understand before you jump into the water because there could be sharks, good things you have a killer whale with you.