Ripple (a blockchain startup) has published the results of the first pilot test utilizing the digital currency of the startup created by its founders. According to market capitalization, Ripple is the third most valuable digital currency at $31.4 billion.
XRP is part of a greater effort in the startup backed by ventures that raised $93,000,000 from Accenture, CME Ventures, Santander, and many more to release dormant capital stored in accounts across the globe. Rather than the cumbersome and time-consuming process of storing funds in international accounts just in case it is needed, the blockchain startup hopes that users will increase the value using the digital currency and software of XRP, releasing the capital for other uses.
The Debate of Ripple’s Value
Irrespective of the relatively high valuation of the digital currency together with some high profile business deals, including American Express and other firms that are using services not related to digital currencies, the real price of Ripple to the finance industry is highly debated.
The Potential of Large-Scale Use of Ripple
While the possibility for a broader utilization of Ripple is not anywhere close to the proposed target, there is some strong evidence that the digital currency of Ripple might have a lot more applications other than buying at a low price and selling at a higher price.
The Improved Transaction Time and Reduced Transaction Fees
A report released by the blockchain startup revealed a 40 to 70 percent reduction in transaction fees compared to other exchange providers. The report also showed an average transaction time of two minutes compared to the several days it usually takes to complete typical transactions.
The aspect of the transaction that relies on the XRP of Ripple only takes a couple of seconds. The remaining processing time is spent during the cause of originating and receiving cryptocurrency exchanges by institutions.