Ripple Makes Waves
While people get in a froth about the future price of bitcoin, there are many other interesting developments occurring in the digital currency world. iCE3X implemented Ripple into its exchange system because of the belief that Ripple may end up causing an even more explosive change on society’s relationship to money than bitcoin.
In October, Ripple became the second largest cryptocoin by market cap ($143,238,505), overtaking Litecoin whose market cap is $129,049,953. The immediate explanation for this runaway success is that two US banks, namely Cross River Bank and CBW Bank have each announced that they will implement the Ripple transaction infrastructure in early 2015.
Perhaps, even more significantly, the deeply conservative German banking community, gave their thumbs up to the Ripple protocol last May. This is momentous, equivalent to the Pope suddenly declaring that henceforth priests can marry. Fidor Bank saw its stock price increase more than 60% after the news.
Of course, what all these banks have in common is the burgeoning recognition that the risks and costs of international transactions can – using the Ripple protocol – be cut to a minimal. Not only this it In contrast to the existing system, the Ripple ledger operates 24/7 and provides for real-time, bilateral settlement, eliminating the need
for a third party clearing agent.
Behind the emergence of ripple is a larger story. Ripple is a vast ledger system that will enable people to deal direct with one another, with the cast-iron assurance that they no longer need an escrow system when handling high denomination assets; as a result the process of purchasing real estate and doing major business deals could be transformed. A ledger transaction is a lot less costly than the service charges of lawyers and accountants!
In other words it is a paradigm shift that signals profound changes lie ahead of us all. It also means that anyone who is already familiar with the concepts and philosophy of alternative coins has a head start on the rest of the population