What is RippleNet?
RippleNet is a decentralized global network of banks, payment processors, and market makers. Ripple Lab partners use the network of connected Banks and other connected companies to send money worldwide faster.
RippleNet is a global payments software solution which is built and sold by Ripple Labs. The software suite consists of three distinct software packages – xCurrent, xVia, and xRapid. RippleNet is an enterprise solution, and the network connectivity and the access to the software are only possible when the company has purchased the software from the Ripple Labs.
RippleNet allows the banks to track payment transactions end to end, which means banks have full visibility in the current state of the transaction and the parties involved in the transaction process.
RippleNet enables the banks to compete with various FinTechs, which are siphoning the disappointed customers of a traditional bank. With the help of RippleNet, participating banks can settle the transactions in a few seconds, which takes about 3-5 days in the traditional process of payments.
Benefits of XRP in Payments
The role of XRP in the Ripple ecosystem is critical. For many investors, the utility of XRP is still unknown. Current cross-border transactions happen between the technology that is not connected to each other, Ripple, which uses Interledger protocol, enables the routing of payments through interconnected ledgers to connect these systems.
The ledgers of such protocol can be the part of the financial institutions’ network, or they can be trusted nodes in the network, which spans many entries. The overall system’s technology is created to increase transaction processing speed for cross border transactions.
Ripple products use XRP for quick liquidity. xRapid is another Ripple product that uses XRP as a bridge asset which financial institutions can use as a bridge between two different fiat currencies. A financial institution can buy an equivalent amount of XRP and send it through the Ripple network, which is called ‘Third-party Liquidity Provisioning.’
XRP’s role in the transaction is similar to the role that the US dollar plays in the international market. The currency is used in various trade transactions and the conversion of currencies. It is especially useful in the conversions between currencies that are thinly traded on the international markets.