Ripple ($XRP) facilitates the ability to send money quickly and safely around the world via the blockchain.

Established in 2012, Ripple was designed to be a gross, blanket payment system for real-time transactions, currency exchange, and international cross-border remittance. Ripple can facilitate transactions of all currencies around the world, with much lower fees than existing systems.

The term Ripple is often confused for its native digital currency ($XRP), the open payment network that the currency is transferred through, Ripple is the holding company and Ripplenet is the network. 

$XRP is also used by banks to gain liquidity on demand and also by payment providers to expand reach into new markets once unreachable without cross-currency payments. A transaction using XRP is cleared in 4 seconds, now compare that with Ethereum at 2 mins, Bitcoins 30-60mins and the numerous days it takes using traditional banking – it’s clear to see why Ripple is gaining momentum.

Ripple in a nutshell, is essentially providing a gate-way and onramp targeting banks, credit cards, and other institutions such as PayPal as a solution in order to keep up and compete with decentralised blockchain and payment networks.





PLATFORM : Ripplenet

CONSENSUS : Proof of correctness

CEO : Brad Garlinghouse

PURPOSE :  Instant, cross-currency, world-wide payments for financial institutions with drastically increased speed at a substantially lower operating cost.

POINT OF DIFFERENCE : Bridging banks and crypto in a centralised fashion

MAJOR PARTNERS : Google, The Bank of England, The Royal Bank of Scotland, MoneyGram, Santander and many, many more

WEBSITE : Ripple Website



XRP, was created mainly to give liquidity to the Ripple network, bridging the gap between unrelated currency pairs. Allowing almost instant exchange of fiat and cryptocurrencies done through creating liquidity without increasing liquid asset holdings.

Ripple facilitate other currencies on their network, but only $XRP is free from counterparty risk –  the possibility the counterparty doesn’t fulfill their transactional obligations. This is a potential risk to insurance policies, bonds, or other contracts.




The payment network that is used to connect financial institutions, facilitating the friction-less transfer of assets through the decentralised XRP ledger.




The currency used for all transactions made within the RippleNet system. Ripple’s XRP was not designed to pay for goods and services, it was not created to be a competitor to bitcoin. In fact it is much more of a threat to the SWIFTPAY system. RippleNet can process over 1,500 transactions per second and eventually will scale up to VISA-level proportions of 50,000 transactions per second.


How does Ripple work?


The Ripple payments protocol allows users to deposit & withdraw any supported currency. This makes Ripple extremely useful for giving liquidity to global financial institutions and allowing them to communicate with each other and provides transparency regarding the networks transactions e.g who has sent and what is received. The asset class exchanged can be fiat, air miles, assets, gold, silver, and more.

Users can convert the rights to metals into digital tokens (IOU), #Gold, #Silver, #Platinum, #Palladium and #Rhodium (XAU, XAG, XPT, XPD and XRH). You can sell the metal tokens in the Ripple payment protocol, and receive dollars, euros, or pounds anywhere in the world almost instantly.

It has been estimated that Ripple could save $1.6 billion for financial institutions worldwide.


RippleNet offers 3 different types of transactions;




The most developed Ripplenet solution, it has already begun testing with banks including the Federal Reserve and the Monetary Authority of Singapore and if it continues on this path, could potentially be a replacement to the existing SWIFTPAY system by enabling banks to settle international payments with full end to end tracking, within seconds.



The liquidity source of Ripples native token XRP. Payments into new markets will often require some form of pre-funded currency in local accounts internationally, this makes liquidity costs high. xRapid massively reduces the required capital for liquidity within businesses throughout the world.



Designed for corporates who wish to make payments across multiple networks using a standard interface.

Users simply use the API to plug into existing applications/accounts, with no upgrades or software downloads necessary. This enables them to make international payments with transparency and including rich information. e.g user information or invoices etc.

What problems is Ripple looking to solve?


Ripple is a privately held company that is creating cheaper, faster, more efficient connectivity over the global network of financial institutions.  Ripple has named this global network using their software the “Internet of Value”.

There are 3 main problems with banks today that the Ripple team are working to solve;

  • Slow transaction times
  • Expensive overseas payments
  • Cross-currency liquidity

They are aiming to create a new payment system that drastically improves cross-currency transactions,  transaction speed and reliability while reducing the cost.




Ripple, unlike bitcoin, was not created to disturb the central banking industry. Instead, it was designed to work with the banks and help them make bridge the interlinking of fiat and digital currencies. An easy way to explain it is to be the ‘internet of banks’, allowing them to all communicate and transact with each other using a common language.

In traditional banking, there is a type of account called a nostro account. These are accounts held by a bank in a foreign currency in another bank. All large banks require nostro accounts in every country to give them liquidity in those countries.

With Ripple these accounts are completely unnecessary & obsolete. Instead of all these different accounts in different countries costing a lot of money banks can just hold $XRP and transact between all these different currencies with ease in a matter of seconds.


Network Fees


XRP’s protection from DDoS attacks and spam disruption is to destroy a tiny amount of the currency at each transaction. This cost was created to scale with the growth of the network load and make it incredibly expensive to disrupt the system.

Currently the min cost per transaction 0.00001 XRP. It will occasionally increase slightly if the network experiences an unusually high load.






There are 2 main competitors in the market at the moment that are trying to tackle similar issues;


StellarStellar Lumens  

Founded by Jed McCaleb, the person that started Ripple. Stellar can be argued as the direct competitor of Ripple as it is looking to handle payment solutions with Stellar’s native token.



Japanese based company Qash is similar to Ripple XRP as they are also working to resolve liquidity issues within central banking and other financial areas. Allowing users to have access to short-term finance or to liquidate assets as necessary.


Below is a map that shows the different locations of exchanges and platforms that offer XRP in red $ sign, Ripple’s blue logos represent their current partnerships.



Where can you purchase Ripple $XRP tokens?



You are able to purchase Ripple on Easy Crypto (NZ Residents) or via top volume, reputable exchanges such as Binance.


Outlook for Ripple $XRP?


Ripple has a number of strong fundamentals – team, product, use-case, adoption and partners. The team have identified a problem and a solution and current financial infrastructure would find attractive for numerous reasons. However the most important and fundamental element of blockchains is decentralistion and enabling P2P value transfer. Centralisation is the root of majority of the problems/broken models we face in business and life today, $XRP is a backwards step in regardless to this aspect.

Ripple on one hand is a innovative system facilitating cross border remittances with xRapid and the likes of  and on the other hand $XRP  goes against the major movement to what this industry is all about – decentralisation and fairness for all.

The battle for middle earth wages on…




Ripple map by Saketova

Ripple team photo and Ripplenet transaction types pictures by


Summary and Score

Ripple $XRP






Working Product







  • Instant transactions
  • Low Cost international transactions
  • Cross-currency Payments
  • Strong Team
  • Huge market cap/liquidity


  • Centralised
  • Still in testing stage with banks
  • $XRP does not need to be used in order to use their product suite

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