Ripple, called often the bank cryptocurrency because it is used by many financial institutions for remittances and across borders payments, is not very well respected among cryptocurrency circles. While it is backed up by a leading company that has been supporting the crypto asset by a long time, it has been criticized for being not mineable and centralized. But it does what it was designed to do, and it does it well.
Ripple and Its Burden
Ripple its like the pariah of the cryptocurrency world. In a field where most cryptocurrencies seek to replace the bank order by providing users with the opportunity of bypassing the established system, Ripple is focused on inserting itself on financial services.
Ripple model of business has been based on promoting itself as the best way of making remittances and cross-border payments. but they have not promoted as a cryptocurrency for users, but as a service provider for banks and financial institutions.
While many institutions do use Ripple, they mostly use it as a backend, meaning that users don’t even know that they are using cryptocurrency technology. Even Western Union has been experimenting with Ripple to examine changing its business model to include it.
Quietly Doing Its Job
But despite being hated for most of the cryptocurrency community, Ripple is known by being a very efficient and trusty cryptocurrency for making transactions, being able to process a large number of them in little time.
Also, the fees collected by the ripple network are much lower than an equivalent transaction made with bitcoin. As a matter of a fact, most transactions do not cost even a penny to make, even with great sums of money being moved around.
In an interview published recently, Michael Arrington, the CEO of Arrington XRP Capital, a cryptocurrency investment company, talked about a great feat achieved by transacting with XRP, that could not have been made with fiat money.
Less Than A Penny By Million
Michael declared in that interview that his company had been able to send $50 million in less than two seconds while paying 30 cents as a fee. That is completely amazing and teaches people about what can be done with Ripple.
We moved $50 million dollar worth of XRP into our company in 2 seconds and it costed 30 cents. There is no way to do that with fiat or Bitcoin.
— Steven Diep (@DiepSanh) October 18, 2018
An equivalent transaction by bank wire had been impossible to make with the same efficiency in the same period of time. Also, the fee was quite low, and for every million Michael only paid less than a penny.
He concluded by saying that even with the tribalism present in the crypto world, this cryptocurrency is clearly doing what it is supposed to do well. And with what he declared, he clearly showed it.