Even though a lot of cryptocurrency enthusiasts readily dismiss Ripple, the project has a lot of interesting traits working in its favor. A few new features have been introduced to the Ripple Consensus Ledger and Interledger protocols a little while ago. These changes improve transaction throughput for international payments. Moreover, Ripple is on par with Visa when it comes to handling network transactions.

Do Not Underestimate The Ripple Network

Putting any harmful feelings toward Ripple aside for a moment, cryptocurrency enthusiasts have to acknowledge this distribute ledger project has a lot of potential. It is the first of its kind to actively compete with established payment networks such as Visa. To be more specific, the recent Ripple network updates allow the protocol to process as many transactions as Visa in the same time span, but at much cheaper cost.

To be more precise, these new features pertain to Escrow and Payment Channels. It is now possible for the Ripple Consensus ledger to communicate with the Interledger Protocol and lock up payments. This means users can effectively hold funds transferred over the Ripple protocol in escrow until certain conditions are met.

Moreover, there are no intermediaries involved, creating a trustless system that is beneficial to all parties involved.More specifically, when the funds are kept in escrow on the Ripple network, no single institution is in charge of the funds. This is a feature a lot of clients will enjoy as more time progresses.

The Ripple team introduces a payment channel for XRP as well. This new feature allows a transaction throughput of tens of thousands per second without issues. It is evident this payment channel is designed for XRP specifically. In a recent test, the network handled close to 70,000 XRP transactions with an average time of 3.7 seconds. That is on par with what Visa can achieve.

This new XRP payment channel will provide a quick and efficient way to conduct cross-border payments. XRP is still one of the best liquidity options for emerging markets dealing with outdated banking infrastructure. It is believed Ripple will continue to expand its role in the global payments industry over the coming months and years. Moreover, these changes may result in increased XRP adoption on a global scale as well.

Header image courtesy of Shutterstock

Tags: , ,
Author's gravatar

Ripple is the best investment opportunity across all digital currencies. Ripple has over 150 employees, has signed up more than 100 banks (and I am sure that list is about to grow exponentially), is hiring ex-switft employee’s, ex-bankers, etc. They are putting all of the pieces of the puzzle together, and the high XRP volumes as of late go to show the increase in interest in Ripple and XRP. Well done Ripple!

Author's gravatar

But what about price going to 10x more then few days ago? I invest in ripple 100$ and next month I can have 1.000$ worth, but also I can be 1$ worth. Not sure that it’s not big deal for companies. You send payments to someone and that person get less or more money that they should (when you convert to USD for example). No logic for me

Author's gravatar

Transaction speed is 2-3 seconds. The price of XRP does not change much in 2-3 seconds. Besides, the larger market cap Ripple achieves the less the price will change. It changes a lot now because it’s still small (big players can move the price). When it has a market cap of 100 Billion USD price swings will be minimal even on a weekly basis.

Author's gravatar

Also, it is highly hinted at by Ripple employees on forums and other recent online articles, that Ripple will “lock-down” a large portion of their XRP as an assurance measure to investors that Ripple will not sell their tens of billions of company-held coins into the market. This move would greatly stabilize the price of XRP but not before a huge pump from speculators!

Leave a Reply

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.