One of the major problems with Bitcoin is executing a transaction. The Bitcoin exchanges are slow (up to an hour or more) and costly (~$30).
According to a press release, Ripple has a blockchain transaction mechanism called the XRP Ledger where transactions (according to them) will cost ” just fractions of a penny” with the average transaction time of ” 2-3 seconds”.
Ripple has now teamed up with the public company MoneyGram, an international payment processor, to test the XRP Ledger to send international cross border payments.
The current system requires “money transfer companies to use pre-funded accounts across the globe to source liquidity.
Newer blockchain technologies have the potential to revolutionize this process and optimize capital deployment.”
The Ripple token’s value surged on the news yesterday.
This may be a real life way that the blockchain can make payment transfers more efficient. Stay tuned.