Lets’s talk about Ripple’s plan for 2020-
While Bitcoin is the pioneering cryptocurrency, there are others that are slowly gripping the market. Ripple, Litecoin, Ethereum are some names that have received similar acceptance as Bitcoin. When we talk about the growth of cryptocurrencies, then there are various apprehensions surrounding the same. For most of us, the use of cryptocurrency is an alien concept. But, companies like Ripple are trying to bring a change. They are focusing on making them more user-friendly and free from any error.
What is Ripple?
For those who are new to Ripple, it works as a cryptocurrency and digital platform. It’s functioning similarly to Ethereum. The objective of creating this is to provide a platform for seamless global transactions. Ripple started off its journey in 2012.
Ripple is more popular as a digital payment platform than cryptocurrency, XRP. It works on an open-source and peer-to-peer decentralized platform. It allows seamless money transfer. One of the features of Ripple is that you can do money transfer as Yen, Bitcoin, USD or Bitcoin.
Similar to any other cryptocurrency transaction, Ripple also works on trust. It makes use of Gateway, which works as a link in the trust chain between the two parties. You can compare Gateway to the credit intermediary that receives the money and sends it. Anyone can register on Gateway and act as a middleman for the exchange of currencies.
Quick view on Ripple:
- Ripple is known for its digital payment platform rather than cryptocurrency.
- Its primary function is to allow a seamless flow of transactions and remittance. Its functioning is similar to SWIFT. But, Ripple is faster and cost-effective.
- Ripple relies on a consensus mechanism via a group of servers to confirm the transactions.
- XRP is the third-largest digital asset after Bitcoin and Ethereum.
- Ripple consumes lesser energy than Bitcoin, and the transactions are faster.
All these factors make Ripple become a popular digital asset. However, when we talk about cryptocurrency or transactions in digital format, then there are apprehensions surrounding the same. There are around 3000 digital assets that trade as of now, but not everyone promises to survive.
What is Ripple’s plan for 2020?
Being a popular cryptocurrency and open-source platform, Ripple plan to offer a safe and secure digital platform in 2020 that allows seamless transactions. It wants to connect with every individual. Such that the people who are unbanked can also make use of the same. Currently, the cryptocurrencies are gaining popularity, but when it comes to penetration, then it is limited. Ripple wants to reach the common man and solve common problems. Whether it is making a payment for a cab or cross-border transaction, Ripple intends to cater to all this.
Which problems will Ripple be addressing?
As per Brad Garlinghouse, CEO at Ripple, this cryptocurrency will solve a lot of problems. The current transaction systems that we are using has a lot of hurdles:
- Platforms like SWIFT takes several days for transaction completion
- There are so many cryptocurrencies, but only 1 % of them are addressing the real issues
- Penetrating the market and reaching the unbanked people. Making it useful to solve general problems
One of the biggest problems that Ripple will address is Swift’s “Nostro accounts.” It represents a correspondent bank account that consumes time and money during the exchange process, thus increasing the holding fees. All this consumes a lot of time and money. But, with Ripple, we can solve this problem easily. Using Ripple, the currency can be easily converted into XRP, sent ahead and then changed into destination currency. And, all this takes place in just a few seconds. This lesser time consumption makes the transaction faster and better. It is because of these reasons that the people who were not doing cross-border transactions are getting into it.
The future of Ripple seems to be growing. The currency has already witnessed growth. As per a blog post on Ripple, the processor already has 300 customers. There is a ten times growth in the transactions. Some of the popular customers to the list of Ripple are MoneyGram, Interbank Peru, goLance, Viamericas, etc.
XRP Price Prediction 2020
2019 had been a good year for Ripple. As per the CEO of the company, Ripple is not for short-term goals. They aim to run for long. Since we are on the verge of entering 2020, Ripple holds a lot of promises too. It is predicted that the first quarter is going to be volatile. By the end of the year 2020, XRP might be around $1.40-1.50.
The speculations are high for the growth of this currency. It might face stiff because of Libra. Facebook is also launching its cryptocurrency Libra in 2020. However, there is a bone of contention here; Libra might have to face a lack of trust because of the previous issues of Facebook. But, it is an excellent move to reach out to maximum people. Ripple also aims for the same. Compared to Libra, Ripple is trustworthy, and it is the third-largest digital asset and a popular one too.
How is XRP different from other cryptocurrencies?
The following features differentiate XRP:
- It initiates a high-speed transaction in lesser time.
- The consensus mechanism doesn’t rely on Blockchain technology; rather, it works on Gateway.
- The minimum commission while exchanging the currency.
- Greater security
- The feature of the reversibility of transactions gives it an upper edge.
- You can cancel or edit the transaction in case of an error
- Lesser chances of inflation.
The differentiating features of Ripple give it an upper edge over the other currencies.
The way ahead for Ripple and other cryptocurrencies:
Whether it is Bitcoin or Ethereum, or Ripple, the world is accepting the change and transformation towards digital currencies. Ripple is a popular digital asset. At the time of writing, its price was $ 0.20. Though the price may appear too low, but the currency is expected to grow in the future. It aims to last longer rather than maintaining just a small term goal. Ripple’s plan to resolve the current issues surrounding financial transactions in 2020 to make it a prospective currency of the future.
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