Ripple is quite a popular term among the investors when it comes to digital currency, but banks and financial institutions use it, even more, as an open network for transferring currencies. Ripple is a quicker and cheaper way to send or receive currency and settle transactions, as compared to the existing systems.
Ripple is segregated into three parts, Ripple Labs, RippleNet, and XRP.

Ripple Labs: Based in San Francisco, California, Ripple Labs is the parent company that was initially known by the name Opencoin. The company changed its name in September 2013. Led by CEO Brad Garlinghouse, the company has successfully raised nearly $100 million of funding.

RippleNet: RippleNet is an open-source distributed payment network that enables transactions between consumers, developers and merchants. This protocol transfers payments to work like communications and is being brought into play by some key partners like American Express.  

XRP: This settlement token of the network is the most scalable and fastest digital asset in the market. It enables real-time payments, all around the globe, in nearly 4 seconds, which makes it the best cryptocurrency to invest.

Market Cap of XRP

As per the latest resources, the market cap of XRP showed the maximum boost in the year 2017, when compared to its competitor’s Bitcoin, Litecoin and Ethereum. While Bitcoin inflated to 1500%, Litecoin to 5000% and Ethereum to 8000%, XRP experienced an upsurge of 20,000%, which has gone beyond compare. This is the reason consumers and merchants are heavily investing in Ripple coin.

XRP was never intended to be functional like digital currency, especially Bitcoin, however it came up as a utility for banks and financial institutions. This is the reason it is still called as a settlement token and not digital currency.

How does it work?

Unlike Bitcoin blockchain, Ripple does not involve mining, which means no Ripple coins are created when a miner uploads transaction data. Instead, to achieve consensus, multiple parties authenticate Ripple transactions.

Banks and financial institutions prefer Ripple because it can move large amounts of currency promptly and economically. On an average, a typical XRP transaction clears in 4 seconds, whereas a Bitcoin transaction takes roughly an hour.

Ever Increasing XRP Value

Ripple has been in the headlines for the last few years because of its expanding list of prestigious partners. Last year, Ripple publicised partnering with two renowned banks, UBS and Santander. Last month, the company joined hands with American Express, which created a lot of buzz in the market and the market cap of XRP boosted, out of the blue.   
While Bloomberg has added XRP to its terminals, many Japanese credit card companies will be using RippleNet soon, as per SBI Holdings and SBI Ripple Asia. The collaboration with high-profile partners is a significant factor that has boosted the ever-increasing XRP value.

Unlike Bitcoin, Ripple is not traded in many crypto exchanges, but only handful options allow merchants to invest in XRP.

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