Ripple Expands its Capabilities with New Product – RippleNet
Over the years, Ripple has grown prominently within the cryptocurrency space. In a nutshell, Ripple is a payment procedure that facilitates fast, frictionless cross-border payments with minimal fees. It operates on a series of servers regularly communicating, while maintaining a distributed ledger with an updated state of balances and transactions. The cryptocurrency giant hosts a native asset, XRP, which rebranded in late 2018 from the name Ripple. XRP acts as the chief medium for transferring value over the network.
Ripple announced the launch of a new product late last year, “RippleNet Home,” that would allow customers to connect and partner with each other. During the launch of RippleNet Home on November 7th at Ripple Swell conference held in Singapore, the company stated in a statement:
“RippleNet home will act as a hub where RippleNet members will be able to connect and partner with each other, analyze corridors, and access data analytics on their transactions.”
RippleNet gives financial institutions and business companies the chance to enhance their capabilities and expand their reach in different markets around the world by getting the latest insights about their payment flows and performances.
How RippleNet Works
RippleNet’s main idea is to connect its users and members in a network through managing and responding to the customer’s request on one platform. It also aims to find on-demand liquidity partners that offer low rates and instant settlement, and without a doubt, Ripplenet will improve the overall financial transfer market.
RippleNet also includes an option to generate liquidity and value without using the XRP asset. RippleNet hosts an On-Demand liquidity mechanism on its network that allows the transfer and exchanges across the globe.
In the real world, individuals may want to trade their goods with each other, but they are located far away from each other, let’s say in different countries. It will be nearly impossible for these individuals to find each other and trade their goods. Nevertheless, they can quickly locate each other, meet up, and trade using RippleNet Home. Besides, the network allows users to make payments in any currency, even Bitcoin, at a minimal transaction fee of $0.00001, which is mainly to prevent DDoS attacks.
Also, RippleNet features a direct understanding of the company’s payment stream through data transmitted by region in real-time. The platform will let companies estimate the size of other partners to obtain a reliable assessment of their performance and decide on the best business partner to collaborate.
RippleNet features use smart automation on its dashboard. It enables users to track all their payments and also analyze their transaction history with minimal chances of errors to optimize their company for global payments.
How XRP Works
XRP appeared in 2013 as a native token of the Ripple network. The XRP asset includes use cases like serving as a vehicle for carrying transactions by representing any asset. XRP assets also require users to pay network fees, where each transaction will erase $0.00001 from the ledger. If transfers were entirely free, this feature would serve to avoid spam transactions.
Unlike Bitcoin, XRP had a total supply of 100 billion units. Millions from those billions of units were distributed in various stages of airdrops, preliminary sales, or private placements. XRP was also distributed to banks for testing, but Ripple, Inc. remains the biggest XRP holder with 55 billion units, intending to release them gradually on the open market. However, this may take more than a decade to complete.
Why Ripple Rebranded its Asset
Ripple rebranded its asset to XRP in late 2018 when the public profile of the asset worsened. The move made its early investors question the use case for the coins they received or bought. Afterward, the US Securities and Exchange Commission started to question Ripple on the role of its assets. Both activities of Ripple, Inc. and the market price of its native token were under question. Suspicions that Ripple was selling security rose after investors realized it had been using its token to raise funds.
However, Ripple represented shares into its business, trying to deny that the performance of XRP was tied to the company. Thus, XRP altered its logo and used its ticker symbol as its name for a new impression.
What Impact Will RippleNet Home Have on The Banking Sector?
With the distribution of RippeNet’s assets to banks, the Ripple community believes it will make banks more competitive. According to Ripple, RippleNet Home aims to develop the remittance market by providing customers and investors with a new customer experience.
Based on competition, RippleNet Home will feature intelligent suggestions aimed at increasing competitive advantage, especially in the crypto sector. Here, investors and users can influence the platform to identify the growth parameters of businesses and also enhancing existing partnerships. Since RippleNet evaluates the size of other partners and gets a quick assessment of their characteristics, companies will be able to select perfect partners by using the platform.
Future use of the RippleNet Home and RippleNet payment network will be majorly by banks. According to a statement by Garlinghouse, Ripple’s corporate network has reached over 300 participants. With the new RippleNet Home service, Ripple can be an excellent opportunity for companies in different sectors.
Where is Ripple Now?
Ripple has boosted its presence with bank partnerships under the guidance of its CEO, Brad Garlinghouse.
It is ready to move onto a new form of fundraising where it would tap on financing both from the crypto world and from the world of traditional finance.
Ripple has attracted several true believers and “holders”, some of whom have acquired XRP during peak prices. Some holders are somewhat disappointed in the long period of Ripple’s prices falling. Since 2019, Ripple became a holder itself after reducing the selling of its stash.
However, Bitcoin maximalists describe Ripple’s attempt futile, claiming that Ripple is an impostor within the crypto realm, by merit of being guided by Ripple, Inc. and thus being more centralized than Bitcoin.
Nonetheless, Ripple has not been reluctant to support its growth, greeting the fact that XRP is gaining derivative markets, as well as becoming more liquid. Currently, Bitcoin has still taken the lead; hence investing in XRP is still risky.
With the debut of RippleNet Home, users will be able to gain access to data analytics on their transactions. For companies, it will provide real-time updates on their payment flows and performances, and will also enable them to identify real partnerships projected to improve the overall financial market in the long-run.
Featured image courtesy of Ripple.com