Calculate XRP in USD
Convert XRP (Ripple) To USD :
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What is Ripple?
Features of XRP/USD
Ripple’s technology is designed for use by large financial institutions and the nodes powering the Ripple network are hosted by large organizations such as Microsoft, MIT, and Bahnof. The existing network of entities hosting Ripple nodes decides whether to enable other, new entities to participate in the hosting of RippleNet .
Ripple facilitates the transfer of USD, fiat, cryptocurrency, and commodities between Ripple Gateways (src). A Ripple Gateway is typically a large financial instutition such as a bank, exchange, or commodities broker. Two Ripple Gateways that trust each other can use Ripple to update a shared ledger used to keep track of the amount of, e.g., USD, EUR, gold, and XRP they owe to each other (src). If two Gateways wish to transact that either do not trust each other or cannot transact directly for regulatory purposes they can transact through an intermediate Gateway that they both trust. If there is no single intermediate Gateway they both trust, they can transact through a chain of Gateways. In such a case, the value transfer associated with the transaction “ripples” through the Gateways until it ends up at its final destintation, hence the name of the platform.
Converting Ripple (XRP) to USD, BTC, JPY, EUR
Ripple is use to facilitate the exchange of one asset for another, e.g. USD for EUR, gold bullion for XRP, or BTC for JPY. Also note that for all such exchanges, Ripple essentially updates a balance sheet shared between two large financial institutions which describes how much of a given asset each owes the other.
It is up to the financial insitutions to actually pay each other what they are owed in USD, BTC, gold bullion. XRP is the one exception to this. RippleNet can transfer XRP instantly. RippleNet also provides an opt-in product called xRapid. institutions can use xrapid to make near-instant payments to each other based on the state of the XRP ledger.
Ripple’s value proposition is that, compared to contemporary systems used by large banks to transfer money, Ripple is more efficient. Ripple estimates that it can save banks ~50% on the payment processing fees they incur, saving banks anywhere from 100s of thousands to 100s of millions of dollars per year depending on their size
XRP, is used by RippleNet in two ways – To deter transaction spam. In order to create a transaction on RippleNet, users must destroy a small amount of XRP. During periods of high congestion, this amount increases . The second is as a bridge currency. For example, a Ripple transaction swapping USD for EUR might actually convert USD to XRP and XRP to EUR for liquidity purposes .