Ripple, how to become one of the top three digital currencies in the world!

ChrisLarsen 2025-9-29 14:57 91839人围观 XRP

Affected by factors such as market demand, investor trends, etc., it is normal for the global market value rankings of major digital cryptocurrencies to rise and fall. But no matter how they change, Bitcoin, Ethereum, and Ripple will always remain at a high level. Some people say that Ripple has too many issuances and cannot rise. But the fact is that this so-called coin with a large circulation volume that cannot rise is firmly ranked among the top three in the world's market capitalization rankings. It is also the only currency among the top five virtual currencies in the world that has not exceeded one dollar in market capitalization.

However, at this stage, compared with Bitcoin and Ethereum, which have recently shown a surge in price, Ripple seems to have always been "stable". Even if the price fluctuates, it is still hovering within one dollar. From this point of view, in front of Ethereum and Bitcoin, which cost hundreds or thousands of dollars each, Ripple (XRP), which costs only a few tenths of a dollar, seems out of place. So what is the reason that allows it to become one of the top five digital cryptocurrencies in the world?

A digital currency focused on building a global open payment network

Although Bitcoin, Ethereum, and Ripple are all based on blockchain technology, they take different paths. Bitcoin is a decentralized peer-to-peer payment system that lives outside the government system ； Ethereum is the open source platform that wants to become the world’s computer ； Ripple is an open global payment network designed for the banking industry and payment providers.

In fact, the predecessor of Ripple is Ripplepay, a decentralized currency payment protocol developed in 2004 by network engineer Ryan Fugger. Ryan's original idea was to innovate the traditional transaction model and build a system that can provide safe and fast payment services to community users through the global network. By 2012, with the addition of Chris Larsen, founder of Internet bank E-Loan and P2P credit company Prosper, and Jed McCaleb, developer of Bitcoin trading platform Mt. Gox, the digital currency system Ripple (XRP), which followed the concept of Ripplepay, was also born.

The so-called decentralized global open payment system refers to an instant transfer platform between two parties that is not restricted by currency types. Figuratively speaking, it is like SMTP (Simple Mail Transfer Protocol), which breaks the previous situation where emails can only be exchanged in specific networks (that is, Gmail cannot send emails to Yahoo Mail), allowing instant email transmission between @gmail, @yahoo, @xxxx, @yyyy, etc. The Ripple network is like an email protocol that can transmit various currencies, enabling free transfers between U.S. dollars, euros, RMB, Japanese yen and other currency systems.

Relatively stable characteristics convince the market

Unlike Bitcoin, which is independent of the government system, Ripple is built on the basis of the original currency system and solves the circulation problems between digital currency and legal currency, legal currency and legal currency, etc. In the circulation process, it plays more of a bridge role to facilitate the exchange between various types of assets. Theoretically, Ripple does not have a store of value like Bitcoin. People hold it only at the moment when the two currencies are exchanged.

With the recent rise of digital cryptocurrencies and the influx of investors, there are also many people buying, selling, and investing in Ripple, and the price of XRP was once driven high. However, due to its specific mission and essential attributes, the price of Ripple can only remain within a relatively stable fluctuation range for the time being. Rather than increasing profits for individual users, Ripple is more focused on providing cross-border payment solutions for businesses, financial institutions, etc. This can be seen from the fact that one of its founders, Chris Larsen, calls the Ripple protocol "SWIFT 2.0" (SWIFT is an association that provides fast and reliable inter-currency settlement solutions for major banks around the world).

Ripple's blockchain has been successfully trialed and commercially implemented in banks around the world. Recently, a blockchain-based remittance service was launched between Japan and Thailand, which can complete transfers in 2-5 seconds by using Ripple’s technical equipment. A pilot by Spanish banking giant BVVA successfully completed transfers between Spain and Mexico in seconds. In February this year, Abu Dhabi’s largest bank began providing blockchain-based cross-border payment services to its business users. Additionally, in March this year, a consortium of 47 Japanese banks completed a fund transfer trial on cloud infrastructure using the company’s blockchain.

Relatively stable, relatively safe, instant transfers, coupled with its lack of anonymity, resistance to supervision, etc., have led many regulatory agencies to call on the banking industry to adopt Ripple's payment technology. Moreover, there are currently more than 90 banks registered with Ripple and using XRP for related transfer transactions, of which 15 partners including Standard Chartered Bank, UBS, etc. are members of the top 50 banks in the world. Japan's largest bank, Bank of Tokyo-Mitsubishi UFJ (BTMU), has started payments through ripple technology. For this reason, some experts even believe that Ripple will replace the business of SWIFT (Society for Worldwide Interbank Financial Telecommunication), because compared with the transfer efficiency of SWIFT, the transfer service provided by Ripple is like a sports car racing against a horse.

The charm of instant transfer between two parties is extraordinary

In order to achieve instant transfer, Ripple Coin assumes the responsibility of the measurement unit or transmission medium in the system - based on blockchain technology (Ripple Consensus Ledger RCL), Ripple Coin can conduct point-to-point value transmission in the network, and realize instant currency conversion through the system's automatic exchange rate conversion function. Because of this, the Ripple network is able to bypass the complex and time-consuming settlement process of traditional agent banks, reducing the processing time of cross-border transfers that used to take days to achievable seconds.

Therefore, what is more important than the rise and fall of the price of Ripple on the surface is the underlying technology behind it - compared with the transfer time in days, the high efficiency and market demand brought by the processing speed in seconds are considerable (the transaction speed of Bitcoin and Ethereum can only reach the hour and minute level).

Take the Ripple blockchain instant remittance service jointly launched by Thailand's Siam Commercial Bank and Japan's SBI Remit in the middle of this year. It has a potential market of hundreds of millions of dollars. It is reported that there are more than 40,000 Thais living in Japan, and the annual transfer amount through the Thai-Japan remittance channel exceeds 200 million US dollars. Recently, Ripple announced that it will enter the Chinese market within five years. The cross-border online transactions between enterprises alone are as high as US$5 trillion per year.

In addition, in June this year, Ripple made new progress in the Interledger Protocol (ILP, cross-ledger protocol) released in October 2015 - a single transaction can be seamlessly connected and quickly transferred in seven independent "ledgers" including public chains, private chains, centralized ledgers and traditional payment channels.； Let its future application scope become more extensive - not only instant transfers between various currencies, but also mutual instant transactions of legal currencies, bonds, digital currencies, gold and other assets.

In general, it is supported by the technical realization of high transfer efficiency and transfer speed, huge market demand, recognition by the government and banking industry, and other factors. It is not impossible for Ripple to counterattack higher-ranked cryptocurrencies in the future.

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