Home News BlockChain news Ripple is Becoming a Direct Competitor of SWIFT in Global Payments

Ripple is Becoming a Direct Competitor of SWIFT in Global Payments

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Although the cryptocurrency ecosystem is pretty innovative, there are few groundbreaking innovations. Ripple has come up with a rather bold plan in a bid to keep wooing investors. The company itself focuses on being a bridge between fiat currency and digital currency. Their Ripple Transaction Protocol is bringing some much-needed competition to Bitcoin and Ethereum. Whether or not XRP will succeed, remains to be seen.
There is no denying this company makes a valid point. Replacing established solutions such as SWIFT will not be easy. Especially not when considering how this network works in 200 countries and has support from thousands of financial institutions. That doesn’t make it a perfect system by any stretch of the imagination, though Ripple plans to offer a more than viable alternative and is working together with financial service providers to do exactly that.
One of its selling points is the improved transaction throughput. The Ripple ledger can process 1,500 transactions per second with relative ease. That may not sound like a lot, but it will do so at reduced costs and improved speed. That in itself makes it a contender to any entrenched system used by financial institutions around the globe today. This doesn’t mean XRP will suddenly become the currency of banks either, though. However, it never hurts to have more options at one’s disposal in this regard.
Ripple CTO Stefan Thomas sums up the project as follows:
Ripple provides one frictionless experience to send money globally using the power of blockchain. With RippleNet, financial institutions can process their customers’ payments anywhere in the world, instantly, reliably and cost effectively using just one API.
Which brings us to the RippleNet in question, which will have some interesting consequences. Although this project will not make XRP surpass Bitcoin in value anytime soon, it is still a pretty interesting concept. Using just one API for global payments at lower costs and improved efficiency will bring some much-needed changes to the financial sector. The future’s looking bright, that much is certain.

Source: goo.gl/YUdhd8

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