Will Ripple be the Future of Banking?

With the advent of Bitcoin came different opportunities, and in no time more cryptocurrencies and altcoins were created, all in a bid to take the stress off people as a result of using traditional banking methods of transacting and doing business. The traditional has a lot of lapses, and customers only use these traditional banking systems because there are no better options. However, cryptocurrency has come, and it is a much better option than traditional banking and may go into the mainstream in the near future and end up being the people’s preferred choice of transacting business.

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One of such cryptocurrencies doing all it can to outdo the traditional banking system is the Ripple. Ripple is a cryptocurrency and also functions as an open payment network where currency transfers take place. Banks and financial institutions know how important Ripple is, and as such have begun to adopt the cryptocurrency into their banking transaction models. Ripple has a lot of prospects to make it the future of banking, and these prospects are based on these amazing Ripple features:

• Specifically Created for Financial Institutions and Payment Providers: A lot of cryptocurrencies do not have clear and concrete reasons why they were created, other than being created to drive their platforms. Perhaps they were created for hedging, transactions by users, or to pay for goods and services, howbeit they were not created with a definite application. Ripple (XRP) is a digital asset with a clear definition, including its being created for value transfers and enterprises.

• Cheaper and Faster: With Ripple, there is the possibility banks and financial institutions getting provided with liquidity on cross-border payments. Transferring of huge sums of money between countries via a traditional bank usually takes days to process and deliver, and does not guarantee a successful transfer. Ripple makes cross-border transfers very easy, fast and at very cheap costs.

• Faster Scaling: Bitcoin transactions usually take hours to process, and this is because it processes 7 transactions per second while Ripple processes 1,500 transactions per second. For a transaction to be settled when using Bitcoin, it will take approximately 4 hours, while Ripple takes just 3.6 seconds.

• Security: Ripple transactions take place in the Ripple Ledger. This open-source code system enjoys the backing of some trustworthy validators and members of the engineering team whose duty is to maintain its functionality while developing the ledger further. From its launch, the Ripple has enjoyed decentralization by making it both resistant and resilient to failure and attacks.

• Link between Fiat Currencies: Ripple works with fiat currencies across different digital exchanges due to there its efficient and quick values transfer across borders. For example, a US company who wants to pay a supplier in the U.K. will have to go through a forex provider or the user can also pre-fund an account in the U.K. The two options are usually slow and very expensive. Ripple will make it possible for transfers to be made and foreign exchange fees will be excluded, and pre-funding accounts too.

• Other features include: Easy to purchase, Sustainability, Faster Cross-border Payments, etc.

Ripple has everything it takes to take over the future of banking, it just needs the right support in the right direction.