What is Ripple and how does it work

The banking industry is old, dated,and in desperate need for an uplift. It has been many generations since last happened until now, welcome to Ripple.

Probably one of the most innovative Cryptocurrencies in the industry today. They are not just focused on disrupting the banks but actually the only platform that see a gap in the market to help the banks and to offer real time cross border payments within the banking infrastructure.

Banking transactions are usually proceed in four days, now Ripple can execute banking transactions in 5-10 seconds.

Ripple is about to disrupt the banking & payment systems!

XRP is the one that is really turning the heads of market watchers and financial institutions.

Yet, like all digital assets, XRP is often a source of confusion, mystery and speculation. So, let’s clear the picture with a few things you need to know about Ripple – XRP.

  1. XRP is the only digital asset specifically designed for financial institutions and payment providers
  2. It acts as a bridge between fiat currencies
  3. XRP enables faster, cheaper and more reliable cross-border payments
  4. It is part of an overall network solution for faster cross-border payments
  5. XRP operates at a scale and speed far greater than Bitcoin
  6. It is secure
  7. XRP is more sustainable than mined digital assets, like Bitcoin


Huffington Post Talked with Stefan Thomas, Chief Technology Officer at Ripple to get a more in depth view about the Cryptocurrency Ripple XRP.

•Ripple isn’t creating any other cryptocurrencies or proprietary coins for banks. XRP is it. That means that Ripple success directly equals XRP success.

•XRP will soon be more decentralized than even Bitcoin. Thomas recently wrote a blog post explaining how.

•Not only is there a finite amount of XRP — just as with Bitcoin — XRP is actually a deflationary cryptocurrency, which means that a tiny amount of XRP is permanently shredded after each transaction. It’s the opposite of unlimited supply. As time goes on, the supply of Bitcoin remains the same while the supply of XRP will actually shrink, making it even more valuable with each passing day.

•What about the fact Ripple owns about 60 billion of the 100 billion available XRP tokens? Ripple just announced they are putting 88% of those tokens they own into escrow smart contracts for a period of at least four-and-a-half years. The structure of it means no one has to worry about Ripple flooding the market by selling their own XRP holdings. The fact that they are putting them into smart contracts means they can’t renege on that later even if they wanted to.

The biggest news here is that Ripple is “all in” on XRP. Previously it was believed they would sideline XRP and pursue other coins with banks. Thomas says that’s not the case.

Will XRP volatility scare off banks from using it?

It’s a great question, but here’s why it doesn’t make a difference. If a Bank A buys one million XRP and it takes ten seconds to transfer to Bank B, and during those ten seconds the price of XRP goes down by just one tenth of a penny, that’s $1,000 USD that evaporated during the transfer.

The time that banks are exposed to XRP during a transaction can be quite short. It can be on the order of five to 10 seconds. So the amount of volatility during such a short time period, even for a very volatile asset, is actually not that bad,” explains Thomas. “You can also rely on third-party liquidity providers to take on that risk. And those kinds of companies are actually very interested in taking on these kinds of risk to make a profit and they’re very comfortable with that risk.” This doesn’t work with Bitcoin because with Bitcoin you might be exposed to volatility over an hour, which is very different than volatility over ten seconds with XRP.

Ripple is leaps and bounds more developed than other coins

“It took us many years to come to a compelling, real use case for XRP.” Thomas explained there’s a lot of coins out there today with very vague use cases that people are buying up all over the place. It’s clear that XRP is leaps and bounds ahead of almost all of them in direction, vision, and implementation. Nearly all coins up to this point are conceptual, where XRP already has real-world traction.

Ripple (XRP) vs. Bitcoin (BTC)

Ripple is an enterprise solution cryptocurrency. “XRP was designed for banks from day one,” says Thomas. He explains that Bitcoin isn’t really suitable for enterprise use and that Bitcoin was designed to exist despite government, rather than in harmony with government. And that harmony is another reason why Ripple could succeed in a big way.

XRP can also process much greater volume. Bitcoin can process up to seven transactions per second at the current limit, while XRP today can process over 1,000 transactions per second. That’s a huge difference in scalability as volume of transactions increase and more people start moving their money using digital currency.


XRP takes an average of 3.7 seconds to transact, while Bitcoin averages two hours. That’s on par with the maximum throughput delivered by Visa, the world’s highest volume payment processor.

Consider this if you think XRP has an over inflated market cap: the global foreign exchange market does $5.7 trillion per day in fiat transactions. The size of XRP today, despite its tremendous growth, amounts to a “rounding error” in the scope of its market potential. XRP’s current growth is big, but it’s not even a 100th of what it can become.

Ripple is moving fast and becoming more credible each day, so much so that even the Federal Reserve are backing them and are telling banks to use Ripple XRP because of their fast and innovative technology.

Ripple are also hosting a three day event in Canada in mid October called Swell, which bring Ripple together with its foremost thinkers and leaders in the banking and blockchain industry. These partners are committed to changing the way the world moves money today.

Swell is attracting a roster of payments experts and industry luminaries to discuss trends, success stories of blockchain implementations and real-world blockchain use cases to meet changing customer demands for global payments.

Ripple have invited the ex head of the Federal Reserve DR Ben Bernanke & the inventor of the World Wide Web Sir Tim Berners – Lee and best selling author of the book Blockchain Revolution Don Tapscott speak over the 3 day event in Toronto.

The seriousness of this event has had a huge build up and to have these kind of speakers confirmed tells me there is some big news coming with Ripple XRP .

Now might be a very good time for you to start researching this platform yourself in much more detail because I truly believe this will be one of the biggest players in the market place.

– Real time bank cross border settlements

– Scalability beyond any other Cryptocurrency for payments

– Instant transactions

– Any currency to any currency

– Over 90 banks signed contracts to use Ripple XRP already

– Faster transactions than any other Cryptocurrency 1000+ transactions a second

– Offers liquidity for banks

– Currency supply will get smaller so value will increase higher

You can also learn more about Ripple here in another blog I put together a couple of months ago –

What is Ripple & will it be the next big Cryptocurrency?


Please do your own research, we offer no investment advise, nor am I affiliated to Ripple in any way.

What’s your thoughts on Ripple XRP?

Please leave our comments below?

Many Thanks

The Crypto Pro’s

Author: The Crypto Pro's

We are the Crypto Pro's team educating and training people on Cryptocurrency & the Blockchain Technology. There is about to be a major shift in the world that will impact many lives. This is the biggest invention of our lifetime so far & we want to help you understand how it works and how you can benefit from this too. Cryptocurrency & the Blockchain will change the world as we know it. So take your time to go through the training's and articles we are here to help you all the way.

7 thoughts on “What is Ripple and how does it work”

  1. Really appreciate your explanation of how Ripple works. It makes a lot of sense to participate with such a coin since it opens communications with the bank systems and potentially works with the masses. Ripple will help to bridge the changes in how we use electronic/digital transactions from our present systems to the new future we are stepping into rapidly.


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