Review on XRP by Fanuel PORPORTY
Ripple (or more precisely XRP) is the cryptocurrency of banks
Ripple’s goal is to lower costs, but also the speed of international transactions. Currently international bank transfers take around 3 to 6 days and there remains a real lack of transparency on transaction fees and the status of the transfer.
The Ripple token is a simple exchange medium on the Ripplenet platform. Ripple competes with Swift, which manages the communication of standardized financial exchanges from more than 11,000 organizations. Swift does not carry out transactions, but positions itself as a trusted third party to facilitate and maintain a register of financial flows. In addition to the slowness of its network, it is close to a lack of security, which was worth the loss of $ 80 million to the FED in 2016. Ripple is positioned as a very serious alternative to Swift, with many advantages: the solution is faster, more secure, and more flexible, while being cheaper. The network now has more than a hundred customers, including several very influential banks (Santander, UBS, Crédit Agricole, or American Express). You do not have to have XRP to use the Ripple network. However, using the token helps to further reduce transaction costs, and is therefore encouraged.
Ripple ends 2019 on a high note with a $ 200 million fundraiser. Talking about these investors, there is the New York investment firm Tetagron, there is also the participation of the Japanese SBI Holdings and the venture capital company Route 66 Ventures.
Pros
- Brad Garlinghouse, Managing Director of Ripple. Said “We are in a solid financial position to realize our vision. While others in the blockchain space have slowed down or even closed, we have accelerated our momentum and industry leadership throughout 2019, ”
- Ripple offers a very effective solution to accelerate interbank transactions, which can now be completed in 2 to 5 seconds.
- Ripple est plus sécurisé que Swift et permet de réduire considérablement les commissions des transactions internationales.
- Right now, very few of us are content to just trade in cryptocurrencies. We are still banked and we all have an interest in seeing Ripple gain ground with the banks to take advantage of this solution.
- Ripple is a currency that is not very volatile because it is centralized.
Cons
- Ripple is strengthening the position of banks, providing them with efficient blockchain technology in response to the decentralized cryptocurrency ecosystem. Tokens are pre-mined, so there is no possible reward mechanism for those who wish to participate in network security.
- Ripple is fully centralized, since its foundation controls the marketing of tokens and owns most of it. Its mode of governance departs completely from the libertarian ideal of cryptocurrency.
- The XRP token is still very little used, despite the development of the Ripplenet. It is therefore complicated to envisage a significant increase in its value as long as priority continues to be given to exchanges in fiat currency.
