Ripple Explains RippleNet’s Offerings
In a recent blog on RIpple Insights, Ripple talked about how RippleNet works and also how it is “realizing the internet of value”.
The network has four important aspects—access, certainty, speed, and savings—which makes it perfect. Starting with the first aspect, speed, this is what the blog had to say:
“Today, banks and providers overcome a fragmented global payments system by building multiple, custom transaction relationships with individual networks. By joining RippleNet’s single worldwide network of institutions, organizations gain a single point of access to a standardized, decentralized infrastructure for consistency across all global connections.”
Next up, the blog talked about certainty, which is again an important aspect of the network:
“Legacy international payments cannot provide clarity around transaction timing or costs, and many transactions ultimately end in failure. RippleNet’s atomic pass-fail processing ensures greater certainty in delivery, and its bi-directional messaging capability provides unprecedented end-to-end transaction visibility for fees, delivery time and status.”
The third aspect, speed, is something very important for both the banks as well as the customers of those banks. As per the blog:
“Disparate networks and rules create friction and bottlenecks that slow down a transaction. RippleNet’s pathfinding capabilities cut through the clutter by identifying optimal routes for transactions that then settle instantly. With RippleNet, banks and providers can reduce transaction times from days to mere seconds.”
About the last aspect, savings, this is what the blog had to say:
“Existing payment networks have high processing and liquidity provisioning costs that result in fees as high as $25 or $35 per transaction. RippleNet’s standardized rules and network-wide connectivity significantly lower processing costs. RippleNet also lowers liquidity provisioning costs or can eliminate the need for expensive nostro accounts altogether through the use its digital asset XRP for on-demand liquidity. The end result is a dramatically lower cost of transactions for providers and their customers.”
Since everyone expects things to move fast, the people and businesses look for ways to make things faster in their lives. Thanks to smartphones and apps in which you can find almost everything at the press of a button, people have gotten used to “instant” and when they don’t find it in their experiences with money and financial service providers, they have a hard time dealing with it. This makes RippleNet a very attractive option.
Ripple talks about how inefficient the existing system is by saying:
“Not only are payments limited by inherent infrastructure challenges, but they must navigate a patchwork quilt of individual country and provider networks stitched together for cross-border transactions. This network of networks effectively stops and starts a transaction every time it encounters a new country, currency or provider network – adding even more costs and delays.”
It then talks about how Ripple is fixing the system by saying:
“As a global payments network, RippleNet creates a modern payments experience operating on standardized rules and processes for real time settlement, more affordable costs, and end-to-end transaction visibility. It allows banks to better compete with FinTechs that are siphoning off customers disappointed by traditional transaction banking services.”
Further expanding that point, the company says:
“RippleNet brings together a robust ecosystem of players for the purposes of powering the Internet of Value. This network is generally made up of banks and payment providers that source liquidity and process payments, as well as corporates and FinTechs that use RippleNet to send payments.”
RippleNet is making the payment systems throughout the world with a single, global network. Having partnered with over 100 banks already, the platform is as promising as it gets.