Discovering the advantages Ripple can provide to companies

The Ripple enterprise relies on blockchain technology to empower global institutions. Its mission is to increase global access to innovative technologies and establish the base of a sustainable financial system. Considering the growing flaws of the traditional payment system ― high transaction processing fees, cybercrime, and the considerable number of unbanked people globally ―the use of blockchain technology can address such challenges.

The world’s financial system needs automation, interoperability, and innovation to move forward. In this case, Ripple can connect the old with the new through its digital currency, XRP, which will be a payment option for businesses. As the coin becomes more widely used and easier to introduce by companies, the XRP price prediction will match its growing popularity and increase in value.

So, let’s see what the role of this cryptocurrency-based enterprise is in the business world.

How can XRP improve business transactions?

Ripple’s digital currency efficiently solves cross-border transactions between individuals or institutions. Cost-effectiveness is the main benefit, but XRP also ensures the following:

• The support of a trusty network, where hundreds of worldwide validators work to secure the platform;
• A scalable infrastructure that can handle a high volume of transactions per second;
• Low-cost and fast transactions;
• An eco-friendly environment due to the unique Ripple Consensus Ledger mechanism;

Although it can expand, XRP has two main business use cases. First, companies can use it for cross-border payments, as XRP eliminates the need for intermediaries and settles currency fluctuations during transfers. Second, XRP provides on-demand liquidity for just-in-time treasury operations.

Examples of banks taking advantage of XRP

As cryptocurrency and blockchain become more popular worldwide, more institutions approach these technologies to manage the technological demands of the fast-paced business environment. For example, these banks work with Ripple’s XRP:

• Bank of America partners with Ripple to establish compliance standards and legal consistency.
• Standard Chartered Bank partners with Ripple to enable XRP payments across over 50 countries worldwide.
• Santander Bank has provided cross-border payment options through the One-FX service.

One of the most recent and best features Ripple worked on is its stablecoin, Ripple USD (RLUSD), whose cash equivalents are 1:1. Stablecoins are backed by real-world currencies, giving them more stability and less volatility on the market. Therefore, companies prefer them for payment method expansion and exposure to the emerging market.

What other ventures are possible with XRP?

Many other institutions besides banks can leverage the benefits of Ripple’s XRP. FinTechs, for example, can gain a competitive advantage over banks by integrating blockchain technology through innovative API integration. This allows brands to connect to the payment network and expose themselves to capital resources.

Of course, crypto businesses that want to increase in value and gain customers’ trust can use Ripple’s cross-border payments solution to access new markets and connect with fiat payout networks. In addition, they benefit from pay-in to liquid providers and can optimize their margins by reducing the number of intermediaries needed to grow.

Therefore, Ripple is best at bridging TradFi (traditional finance) and cryptocurrency by focusing on institutional DeFi (decentralized finance) that works in the current world.

On the XRP Ledger and its functionalities

The XRP Ledger is a blockchain platform revolutionizing the financial industry. A community maintains this public, decentralized blockchain built for business. In addition, its innovations offer streamlined development and high-performance transactions with low costs.

The XRPL ecosystem has often been used in industries like infrastructure, developer tooling, and NFTs, with more than 1500 apps or exchanges built on the platform. Developers leveraging its features contribute to creating solutions across various industries. For example, Cryptum is an API/SDK used to integrate the ledger with other applications, while Gatehub is an explorer for the XRP Ledger.

XRP supports a wide range of programming languages

The XRP community encourages developers to contribute to the environment by designing and employing new applications. Therefore, it supports the development process by allowing access to a vast array of client libraries and languages, such as the following:

• Python
• JavaScript/TypeScript
• C++
• Java
• PHP
• Ruby

The XRP library supports thorough documentation for developers, including code samples, dev tools, and a learning portal. In addition, developers can access project funding through CRPL grants that software developers, teams, and startups can leverage. Of course, the grant has some requirements, so developers must master coding, have knowledge of the GitHub repository, and have a project narrative or description. For more advanced devs or teams, the XRLP accelerator program is available.

Are there any challenges businesses must be wary of when using Ripple’s functionalities?

While using Ripple has many advantages, it could also pose a challenge considering the current financial ecosystem. That’s because the lack of regulation around blockchain or cryptocurrency technology makes it difficult for businesses to connect with innovation while staying compliant. As the US and EU are shaping a legal framework for businesses and individuals, more companies are attracted by the decentralization era.

The disadvantages of traditional finance are pushing companies to test blockchains as cloud solutions and cryptocurrencies as payment methods to appeal to the new generation of customers. However, this means experimenting with unsafe ecosystems and technologies. Given the lack of talent in the blockchain community due to the industry’s newness, hiring and training experts in the field will be difficult.

Finally, the use of blockchain and crypto is still complex so that the steep learning curve can hinder rapid innovation. As these tools continuously evolve, we need more teams to keep up with the fast-paced nature of decentralization.

Final thoughts

Ripple is an efficient tool for companies that want to propel their business in the blockchain industry. With its native cryptocurrency, Ripple can help companies evolve by providing low-cost and fast transactions, a stable infrastructure, and scalability. Global companies like the Bank of America have already started using it, and even FinTechs and crypto businesses use it to gain a competitive advantage. The Ripple ecosystem believes in supporting developers‘ efforts and offering them grants to contribute to the environment, which stabilizes trust and brand reliability.