The cryptocurrency industry is bigger than ever. The technology has come a long way in a relatively short span of time, and it continues to improve and develop as new coins, tools, assets, exchanges, and platforms hit the market.

When it comes to using crypto and blockchain tech for business purposes, the Ripple distributed ledger technology network is an increasingly popular choice. Let’s take a closer look at why this is gaining traction and discuss how it is affecting the XRP price.

What is the Ripple Network?

Ripple is a blockchain platform that was launched back in 2012.

It is an open-source, decentralized network used primarily as a payment processing protocol. XRP, Ripple’s native cryptocurrency, can be used to conduct payments and transactions on the network.

XRP is one of the most popular cryptocurrencies on the market today.

It currently ranks fifth by market cap and has over 53 billion coins in circulation.

The Ripple network acts as a hawala service. What this means is that it can be used to transfer funds across the world quickly and efficiently, using a system that allows for doing so without the direct transfer of money between parties.

This can be a tricky concept to grasp, so let’s look at an example. John needs to send Mark $50, and the two decide to use a hawala service like Ripple. Rather than sending the money to Mark directly, John would instead send it to an agent.

This agent will then contact Mark’s agent and, if Mark confirms a password previously agreed between him and John, he will be given access to the funds. This is how Ripple works, with the network acting as the agents in the above example.

The process is made extra secure through the use of blockchain verification.

Ripple for Businesses

Hawala services are very popular among businesses. They can make money transfers more efficient and more secure. This is a big reason why Ripple is being adopted by so many businesses, but there are also other factors at play.

Another reason is the versatility of Ripple and the XRP cryptocurrency. The Ripple network doesn’t use XRP exclusively; it can also be used to process payments made with other cryptocurrencies and fiat currencies.

XRP itself is flexible too; it can be easily exchanged for a number of other crypto or fiat currencies.

Businesses are always looking to cut costs. Making transactions can be expensive, particularly if these need to be made across borders. Ripple allows for low-cost transactions, perfect for business owners looking to reduce their overheads.

Transactions made on the Ripple network are also fast, as they’re free from processing and wait times seen using traditional financial platforms. In addition, the Ripple network can handle large volumes of transactions at once and is scalable to allow for increased traffic.

Finally, Ripple is an environmentally friendly blockchain network. It does not use energy-intensive consensus mechanisms to verify transactions, like the protocol used by Bitcoin, for example.

This makes it a sustainable network ideal for today’s climate-conscious world, and Ripple is being adopted by an increasing number of businesses that are looking to make their operations more sustainable.

What Businesses Use the Ripple Network?

So far, we’ve covered some of the technical aspects of the Ripple network and discussed how it functions as a platform for conducting transactions. However, if we want to understand just how popular the network is among businesses, let’s take a look at some real-world examples of businesses that are using the platform.

Major financial institutions around the world have adopted the Ripple network. These include Bank of America, Standard Chartered Bank, Santander, and Siam Commercial Bank. This impressive list of partners exemplifies Ripple’s reputation and value as a business asset.

Despite the benefits they can offer, we’ve seen some cryptocurrencies and blockchain networks struggle to achieve true mainstream acceptance. Many still view the technology with distrust; perceiving it as unreliable or unsafe.

However, Ripple has been partnering with major financial companies like those listed above, demonstrating the level of trust businesses have in the technology, and we can certainly expect to see it getting adopted by more companies in the future.

XRP Price Performance

Cryptocurrency prices are notoriously unpredictable. They can be affected by a wide range of different factors, and this volatility has long been a criticism levied on the sector.

XRP is currently trading at a value of $0.49. The asset has demonstrated steady positive growth over time. It has grown by 2.09% when compared to this time last year and by 45.02% since the beginning of 2023.

The growth of XRP is a testament to the strength of the asset and the blockchain network behind it.

Partnerships with major banks mean it is viewed with more trust than comparable cryptocurrencies, and it has the potential to become a payment processing protocol that is completely integrated into our everyday lives.

Conclusion

There are many reasons why the Ripple network is considered to be the best for businesses.

Its hawala system makes for easy, secure cross-border transactions, with the added bonus of being low-cost and high-speed. These benefits have seen Ripple secure partnerships with huge companies, including many financial firms, and it’s certainly an asset to watch for the future.

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Disclaimer

This information is of a general nature only and should not be regarded as specific to any particular situation. This should not be taken as financial advice to buy, trade, or sell cryptocurrency or use any specific exchange.

This is not intended for use as investment, financial, or legal advice as each individual’s need will vary. Binance Australia is not affiliated, associated, endorsed by, or in any way officially connected with any individual or organization mentioned in the article.

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