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. If this is your first time here and you want to learn all about Cryptocurrencies start now by subscribing and clicking on the bell so you don’t miss anything. 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!