10 Things You Should Know Before Investing in Ripple XRP - YouTube

While banks build walls,

Ripple continues to build bridges with the aim of

revolutionizing the financial world as we know it.

Ripple connects banks, payment providers, and digital asset exchanges while quickly becoming the standard for digital value transfer

globally.

We're going to find out exactly how Ripple are trying to solve a problem

measured in trillions of dollars by building the internet of value. Coming up.

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Technology has progressed so much that things like self-driving cars have become a reality

but one sector has really fallen behind and that's

International payment transfers. In the age of Internet where everything is instant

International transactions can take anywhere between days to weeks. All around the world, there are

180 trillion dollars worth of cross-border payments made every year with a combined cost of more than

1.7 trillion dollars a year. If you've ever made a cross-border payment

you'll know all about the costly fees, even services like PayPal are guilty of this. It costs about

2.9 percent to make an international payment using PayPal and that's before the money lost with unfavorable currency

conversions. Ripple aims to change that and make international

transfers instant and cheap for everyone.

Ripple is to banks what the internet is to the world

they call this concept "the internet of value". Unlike Bitcoin, which aims to remove banks as

intermediaries, banks are some of the largest users of Ripple. Released in 2012

Ripple is an open payment network for digital and fiat currency as well as a privately held company

that aims to lower the cost of international payments. These days

customers expect an easy and low-cost way to send and receive money instantly, yet

existing payment systems make it hard for banks to provide this service. The main problem that Ripple tries to solve is best

understood with the following example:

Imagine a person in the United

States trying to send money to Mexico. As you can see there are many stops in between

the sender and receiver each one of these stops not only slows down the transaction

but also takes a transaction fee. Ripple's distributed financial technology

aims to bypass these stops by utilizing their own more efficient payment network.

XRP is the third most valuable

cryptocurrency and one of the fastest and most scalable digital assets in the world.

Its primary use case is to act as a bridge asset for

transforming from one fiat currency to another. When XRP was created, Ripple studied bank usage of nostro accounts

they discovered that usage of a common "bridge" currency like XRP had the potential of saving banks a

significant amount of payment processing cost. If banks use Ripples interledger

solution xCurrent they are projected to save up to

33%. However, if banks choose to use XRP as a bridge currency

the levels of savings is increased to up to 60%. XRP

transactions are so inexpensive that they're barely noticeable and only a fraction of a cent. Also XRP

settles in under 4 seconds.

That's the kind of speed that will support global commerce for Ripple.

Scalability is also critical for a payment system that must support transactions on a global scale.

XRP clocks in at

1500 transactions per second.

Additionally the payment channel function allows XRP ledger to process transactions at over

70,000 transactions per second and is horizontally scalable to even higher speeds which exceeds the metrics of even

centralized payment processing networks such as VISA.

RippleNet is the name given to the ecosystem built by Ripple

This includes their three main products xCurrent, xRapid and xVia, as well as the open source

XRP Ledger.

They each solve different and unique problems

which include: global payments, on-demand liquidity, and business payments. In short RippleNet is the

combination of all of these elements. xCurrent is focused on processing payments for banks and other payment providers.

xRapid provides on-demand liquidity by sourcing XRP from crypto currency exchanges. Ripple's

pathfinding algorithm finds the fastest and cheapest path between two currencies

automatically. Once a bank is connected to both

xCurrent and xRapid it can work with xVia. xVia is a tool for businesses to

interact with the xCurrent network. It is essentially an interface (API) that enables companies to send or receive

payment requests to and from their bank using xCurrent and xRapid for payment

processing. Finally all payments travel through the RippleNet system

Which is tied together end-to-end with Ripple's interledger protocol.

Ripples interledger

protocol can connect every payment service in the world and process payments across every network and ledger. Whether it's Visa,

PayPal, Western Union, or even JP Morgan. The Ripple network can provide seamless,

borderless payments in seconds, at just fractions of a cent, but Ripple can also

connect all of these payment services with every other cryptocurrency and blockchain ledger. Ripple can in fact become the reserve

standard across multiple platforms and ledger's, making it the most dominant monetary asset in the world. This

ability to communicate with other networks provides additional liquidity to the

XRP ledger as it's extended to connect to other networks and their value. Speaking of connections

Recently JP Morgan has made waves in the crypto world by announcing the release of a JPM

banking cryptocurrency

It's no secret that banks have already been in an arms race to build the next big blockchain technology. Most

high-profile sites have jumped on the anti XRP bandwagon, claiming that this new token will be a bad thing for

XRP. It's pretty clear that it's not the case. The fact that a high-profile Wall Street bank like JPMorgan

wants to enter the crypto space with their own Fiat pegged token, is a clear sign that

cryptocurrency is one step closer to achieving universal acceptance in the banking space.

This could actually be one of the most bullish things to happen to XRP. On May 16

2017, JP Morgan and Ripple were part of an event where they did a demo with both Ripple and Quorum.

Imagine what would happen to XRP if JPM announced the use of xRapid?

Ripple has a large-scale strategy where it is partnering with banks and companies around the world on

trialing xCurrent and xRapid. Right now, Ripple is already partnered with more than 200 clients,

banks, and financial institutions. In

2016 Ripple formed an alliance with SBI

Japan's

financial services giant. The result of the alliance was a new business

unit for SBI called "SBI Ripple Asia".

The purpose of this alliance is to build and engineer a sales force across Asia to sell and install

Ripples enterprise solutions for cross-border payments at banks across the region.

Additionally, Ripple has many tools at their disposal to promote xRapid adoption and the use of XRP.

Ripple has solid, proven leadership

helping to guide its growth and adoption. These are superstars.

If you don't know who Brad Garlinghouse is you should. He used to work for Yahoo

and was the author of the now world-famous "peanut butter

manifesto". Brad Garlinghouse is a leader that believes in efficient and laser focus for an organization.

It's good have a CEO who will not stray from the core vision for XRP - to be the best digital

asset for payments. As far as other executives at Ripple, it can be said that this group is a real "who's who" of

cross-border value transfer.

Ripple has faced some heavy criticism from the crypto community due to its centralized nature.

it is important to point out that Ripple is taking steps towards higher levels of

decentralization. Ripple is in the process of expanding its blockchain nodes

which validate each transaction. This means that as more banks and businesses use the Ripple Network and

XRP not only will the network be able to handle all of the volume in just seconds with extremely low fees

but it will also be one of the most

decentralized blockchaines in the world. This is important because it will prevent any one institution,

government or person from gaining dominance or leverage over the system. Currently,

it's faster to put your money in a briefcase and fly it to a different country than it is to send it through a bank

transfer wait times and fees are archaic

Every year a major bank goes without blockchain is trillions of savings lost to the inefficiencies

of our international payment systems. It's a question of "when" not "if" banks and other financial

institutions begin using digital assets in their day-to-day business operations

XRP will succeed because it has a purpose enabling financial institutions to send money across borders quickly,

cheaply and easily. If you made it to the end of this video

let me know in the comments if you're bullish or bearish on XRP in

2019. Also, make sure you subscribe and like this video. Thanks for watching and I'll talk to you guys later!