According to sources, Ripple is set to launch a commercial payment platform next month as xRapid. The platform is designed for speedy and real-time transnational payments and to lessen the liquidity cost caused due to cross-border transactions. The platform is backed up by XRP tokens and aims to minimize need of money for liquidity. But before proceeding, let us understand what Xrapid Ripple is.
But What Is Ripple?
Few years back, Ripple was introduced with an ambition of developing “Internet of Value” (IoV) that can address the problem of transferring money worldwide seamlessly. The developers were aiming to create a system, where money can be moved just like information and they were particularly targeting banking and enterprise use.
Ripple was meant to be a cryptocurrency that allows international payment at lower transaction cost along with the added benefits of digital currencies. These features can boost the workflow of banks and enterprises and is currently not available in any cryptocurrency.
And today, Ripple has realized its dreams by xRapid launch and is continuously growing its base in terms of global payments. They have established themselves as the finest digital platform for transactions and has overall different identity, way different from Bitcoin and Ethereum. Its customers do not suffer due to high volatility and has decent supply mechanism.
Understanding the Giant Leap
Before proceeding, first understand the difference between Ripple and XRP. Ripple is a company while XRP is the cryptocurrency developed by Ripple. The company is working with single motto of augmenting international payment at convenient rate and at faster speed by using XRP tokens. Ripple is in partnership with banks all over the world but none of them are using XRP tokens.
Now, coming to xRapid. Besides RippleNet, xCurrent and Interledger Protocol, Ripple also launched XRP tokens and is in partnership with more than 120 banks. However, no bank is using XRP token, which is a major reason for distress. To cover up and to give boost to XRP token, xRapid Ripple platform is being launched and might go live by next month.
However, those collaborated banks are using Ripple’s other services like xCurrent, devised for quick payments and easy communication. It uses Blockchain technology, but it cannot settle transactions, which falls under the domain of XRP. And therefore, second phase is launching in next month as xRapid Ripple.
What Is xRapid?
It offers a platform for settling transaction of XRP tokens at quicker rate and at lower price worldwide. Here, XRP is a bridge currency and xRapid is the platform from where transactions can be performed. Now, when you have understood the role of these terms and technologies, let us understand why they are important.
It is all about economy, which is run by banks and enterprises. Banks run on money and they need liquidity to perform their daily tasks and meet the need of their customers. Banks also engages in foreign exchanges and the present method of managing liquidity in foreign exchange is inefficient.
Let us understand with a simple storyline. Suppose, you are working in a distant nation and your friends and family are living in your hometown. Now, there is an emergency, where you are supposed to send lots of money to your family member living in other country.
What are the requirements? You must own a particular bank account necessary for transferring money to other country and of course lots of money. The money deposited is exchanged at your account before being send to your family member’s account. The complete process is costly and inefficient. But what if we switch to digital currency-based account altogether!! We no longer need any bank account, or liquidity to transfer funds
The process will become incredibly cheaper, faster, and efficient. Fortunately, the idea has been successfully implemented in real life and we can see the results by next month of this year. Banks have been testing the efficiency of xRapid and till now, the reports are positive. If everything goes well, we will enter the world of much efficient and easy money transfer mode.
So, this was all about xRapid launch and its parent company Ripple. Do share your thoughts in the comment section below.