Ripple is a real-time gross settlement system (RTGS), currency exchange and remittance network. It aims to enable fast cross-border payments with low transaction fees and all of the other benefits of digital currencies. We’re able to verify transactions on the system by consensus among members of RippleNet. The design is such that it can handle transactions much faster than Bitcoin and Ethereum. Ripple’s global payment transfer system is RippleNet, which aims to provide real-time messaging, clearing and settlement of transactions. Ripple plans to offer three products on RippleNet to suit different users: xCurrent, xRapid and xVia. xCurrent currently enables real-time messaging and settlement between institutions. While xRapid (which uses XRP) aims to resolve the liquidity problem over international payments. Another product, xVia is currently under development to provide a more standard and simpler interface than the other two.
What is XRP
xCurrentxCurrent is an enterprise solution for cross-border payments, connecting banks and financial institutions on RippleNet without using XRP. The design fits within the bank’s existing internal infrastructure as well as to comply with each bank’s risk, privacy, and compliance requirements. xCurrent provides four distinctive features to allow fast, low cost, and real-time payment:
- Messenger: Allows banks to exchange KYC and risk information, fees, FX rates, payment details, and expected time of funds delivery. This feature enables visibility and transparency of information between banks. As as result, this will reduce the time needed for due diligence and minimize transaction risks.
- ILP Ledger: The ILP Ledger is a subledger of each transacting bank’s general ledger. It allows instant transactions by tracking the credits, debits and liquidity across the transacting parties.
- FX Ticker: Provides real-time exchange rates between currency pairs for transactions.
- Validator: Coordinates the movement of funds across the ledgers of transacting parties using cryptographic proof. By being the single source of truth confirming the success or failure of a payment, it eliminates risk and delays in settlements due to miscommunication.