What is a ripple (XRP) ?
The ripple is a gross settlement system in real time, also called ” RTGS “, an exchange market and a network of remittances. A gross settlement system in real time is a system in which the settlement instructions for the transfer of funds or securities were held individually, that is to say, instruction by instruction. In addition, it is a system of regulation that operates in real-time. It is a system that has been launched in 2012 and which supports any monetary system, including the fiduciary currency (coins and bank notes) and the currency is cryptographic. It is a decentralized network whose operation can be ensured without any influence of Ripple, the company who founded this system, and it can not be closed.
The concept of Ripple
In the words of Ripple, his open source protocol is a ” technology of the basic infrastructure for inter-bank transactions – a neutral tool for the financial institutions and systems. “In other words, banks and financial institutions can use the service of Ripple. In fact, they can use Ripple to make money transfers in the world. For these international transfers, Ripple uses a pivot currency, the ripple, which is its own currency, crypto.
The principle of these international transfers is relatively simple. Let’s take the example of a transfer from France to the United Kingdom. The money is sent to the account of the issuer to the account of an intermediary, located also in France. This intermediary sends the equivalent of this amount on an account at another intermediary located on English soil, which keeps the ripples and sends the equivalent sum in pounds sterling to the account of the recipient. Thus, the issuer will only pay the rate for a wire local, as the money crosses the border in the form of ripples.
Make international money transfers with Ripple : what are the benefits ?
Make their international money transfers with the company Ripple has several advantages :
- as we have already seen, the amounts transferred across the border, in the form of ripples, which means that you will only pay the amounts in respect of a bank transfer local. It is therefore a very cost-effective solution for all your international money transfers ;
- the processing times are much shorter than for a bank transfer. In effect, an international transfer will usually take several days if carried out by a bank then it is instantly materialized using Ripple ;
- transfers in a currency other than his own is also facilitated. In fact, using Ripple, the recipient will receive the transfer converted to the currency of its bank account.
What you must remember
- Ripple is a service that allows you to make international transfers faster and less expensive than going through a bank.
- Before crossing the border, the money is converted into ripples, the crypto-currency Ripple, which means that you only pay for the costs of a bank transfer local.
- Using Ripple, you can make transfers in a currency other than that of your bank account.