Blockchain in Financial Services Industry
Blockchain technology is a digital, decentralized, and distributed transaction ledger with a growing list of records that is linked and secured by using cryptography. Due to its recent growth in popularity, corporations are starting to understand the technical capabilities for blockchain technology and finding use cases for it, especially in the financial services industry. Currently, the third largest cryptocurrency Ripple (XRP), with a market cap of approximately $50 billion was founded in 2012. Ripple has gained a tremendous amount of popularity since its one of the most scalable cryptocurrency. XRP connects banks and payment providers through its blockchain, RippleNet, simplifying global financial transactions. It’s advantages are quicker transaction times, lower transaction costs, and tracking transactions on its network. In comparison to Bitcoin, cross-border payments could take hours that is associated with ridiculously high transaction fees while Ripple can be completed in a matter of seconds for a fraction of the price. It has locked partnerships with large organizations such as American Express, Santander, and other financial services companies in Europe, Japan, and South Korea.
In the future, do you think Ripple gain mass adoption and replace our current financial system? What are some of the risks if there was a full scale adoption of Ripple? What are some other applications can blockchain technology be used for?