AUS
NZ
UK
CA
USA
IND
Highlights
- Ripple, which is both crypto and a payment method, is much sought-after by larger financial organisations for settling their cross-border payments.
- Its transaction fees are very small when compared to banks and other cryptos, thus making it very popular among its users.
- Recently, QNB partnered with Ripple to strengthen its cross-border payment strategy across the globe.
The launch of Bitcoin in 2009 paved the way for the emergence of other cryptocurrencies into markets.
One such popular cryptocurrency which is gaining popularity among crypto users apart from Bitcoin and Ethereum is Ripple, which was created by Jed McCaleb and Chris Larsen.
Here in this article, we would understand what Ripple is and how does it work.
Source: Copyright © 2021 Kalkine Media
What is Ripple?
Ripple, which was first introduced in 2012, functions as a two-pronged technology of being a cryptocurrency as well as a digital payment method. Its native token is known as XRP.
It was designed to replace SWIFT (a popular money transfer network) and the settlement layer of middlemen between leading financial institutions dealing in currencies.
Know Ripple’s payment mechanism
Ripple’s ecosystem is designed to make transactions quicker and payment settlement easier for banks. Hence, it is very popular among large financial institutions.
RippleNet, Ripple’s blockchain system, provides a number of programmes to businesses and financial institutions to help settle cross-border payments. Some of its said programmes include xCurrent, xRapid, and xVia.
Whenever a user makes a transaction on Ripple’s network, a small amount is deducted as fees. The standard fee, which is set at 0.00001 XRP to conduct transactions, is almost negligible when compared to the large amounts of fees being charged by banks.
Related Read: XRP Tops $1-Mark, Is Ripple Back In The Game?
Also, here it must be noted that while an average Bitcoin transaction may take many minutes or hours and has high transaction costs, Ripple transactions are processed within four to five seconds and that too at a much lower cost.
Must Read: Bitcoin, Ethereum, Dogecoin & Ripple: How Are Cryptocurrencies Faring?
Ripple forges a new partnership with QNB for cross-border payments
Headquartered in Doha, QNB, i.e., Qatar National Bank is one of the Middle East’s leading financial organisations. On 4 October, the Bank revealed its partnership with Ripple for its global cross-border payment strategy.
Through this association, QNB will make use of RippleNet, i.e., Ripple’s financial technology network, and would initially rollout the same in QNB Finansbank in Turkey, with gradual plans for expansion into other corridors.
With this partnership with the blockchain solutions provider, QNB aims to enhance its product offerings to its customers, thereby scaling up QNB’s remittance service on Ripple’s blockchain to venture into additional markets.
Also Read: XRP Tops $1-Mark, Is Ripple Back In The Game?
Bottom Line
Ripple, with its faster speed and low transactions costs, clubbed with its innovative payment settlement system, is becoming hugely popular among big financial houses to settle cross-border payments, thereby making it stand out from other major cryptocurrencies.
Related Read: Is It A Good Time To Invest In Dogecoin & XRP?
