Ripple (XRP) and the future of Financial Transactions

23

October

2017

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Introduction

When discussing about cryptocurrencies, most people are in general familiar with Bitcoin and Ethereum due to their recent surges in price. However, there are other contenders in the cryptocurrencies industry, such as Ripple. What makes it stand out? Most cryptocurrencies fall in two categories: those who are direct competition for banks and those who try to make banks evolve and work together with them. Ripple is the exception that falls in both categories (Eha, 2017).

Basic characteristics of Ripple

Right now, Ripple is the third cryptocurrency in the world in terms of market capitalisation (Eha, 2017). Due to Ripple’s centralised characteristic the total number of coins (XRP) is pre-determined and pre-mined. There are in total 100 billion coins in existence, and Ripple owns around 61% of those, with a worth of $16 billion (Levy, 2017). The coin was created as a deflationary currency, which means that by each transfer concerning XRP, a small fraction of a coin is destroyed. Due to its centralised aspect, there were certain concerns that the supply of the coin could be artificially manipulated by the Ripple company (Bajpai, 2017). In order to diminish these concerns and to raise the confidence in the coin, Ripple decided to store set apart 55 billion XRP into a safely-encrypted escrow account.

How does Ripple help Financial Transactions?

To put it simply, Ripple enables fast-paced real-time transactions around the glob (Bajpai, 2017). Compared to the traditional way of making international transfers between banks, SWIFT, which provides one-way communication services, Ripple offers two-way exchange of information. Therefore, Ripple main asset is to reduce the processing time and the fees for international money transfers. Right now, international transfers between banks take a few working days to complete and they cost between 5$ and 50$, in addition to the foreign exchange rate that can be as high as 3% (Eha, 2017) . For Ripple, the average transaction cost is $0.0003 (three one-hundredths of a cent) and the confirmation time is less than 4 seconds with a scalability of around 1000 transactions per second (Bajpal, 2017). While the sums of international bank transfers are in total around $155 trillion (155 followed by TWELVE zeroes), Ripple could save a lot of time and money currently paid for transaction fees (Moskov, 2017). The company has already partnered with more than 90 banks around the world, including: BBVA, Westpac, Banco Santander and the National Australian Bank (Noto, 2017).

Concluding thoughts

I believe that Ripple can solve many problems in regards to money transfers around the world in the very near future. A solution like this was needed for the financial market, which was lagging behind the technological developments of our society and needed a rebirth. Please leave your opinions in the comments, I am very curious to know what do you think about this novel technology.

References:

Bajpai, P. (2017). Ripple Is Emerging as a Stable and Trusted Cryptocurrency [online] Available at: http://www.investopedia.com/news/ripple-emerging-stable-and-trusted-cryptocurrency/ [ Accessed 22 Oct. 2017]

Eha, B. P. (2017). Inside Ripple’s plan to make money move as fast as information. [online] Available at: https://www.americanbanker.com/news/inside-ripples-plan-to-make-money-move-as-fast-as-information [Accessed 22 Oct. 2017]

Levy, A. (2017). Bitcoin rival Ripple is suddenly sitting on billions of dollars worth of cryptocurrency. [online] Available at: https://www.cnbc.com/2017/05/26/bitcoin-rival-ripple-is-sitting-on-many-billions-of-dollars-of-xrp.html [Accessed 22 Oct. 2017]

Moskov, A. (2017). Is Ripple a Good Investment Target? [online] Available at: https://hacked.com/ripple-good-investment-target/ [Accessed 22 Oct. 2017]

Noto, G. (2017). Bitcoin Cash Grabs Headlines, But Ripple Has Banks’ Attention. [online] Available at: https://bankinnovation.net/2017/08/bitcoin-cash-grabs-the-headlines-but-ripple-has-the-banks-attention/ [Accessed 22 Oct. 2017]

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Flying cars: How the future of transport took off already

10

October

2017

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Flying cars have been a goal for humanity for more than a century already. Science fiction writer, William Kaempfert forecasted in 1913 that there will be flying police cars that would direct air traffic of personal flying vehicles which will be parked on households’ rooftops (Milo, 2010). In early movies flying cars were quite different than Kaempfert’s view. For example, Ian Fleming, in his his novels “Chitty Chitty Bang Bang” (1963) “The Man with The Golden Gun” (1964) envisions a future where cars a capable of both driving on the ground and flying when needed (Roberts & Milford, 2017).

In reality, things are more complex and slower-paced. Henry Ford in an interview in 1940 predicted :”Mark my words. A combination airplane and motorcar is coming. You may smile. But it will come.” (Milo, 2010). Are we getting closer to that moment? Probably, but not as fast as predicted by previous discoveries, such as the two “ancestors” of a flying car: the airplane, and the automobile (Milo, 2010). Both were developed quite quickly, since in 1900 only a few people owned an automobile and nobody flew an airplane, whereas in 1915 both were extensively used at the brink of World War 1. It took only 15 years to produce these two vehicles extensively in order to to be considered mainstream. However, the timeline for flying cars is significantly different (Singh, 2017).

The first attempt to build a functional flying vehicle was the Curtiss Autoplane, presented at an aeronautic exhibition in 1917 in New York. It wasn’t functional since it only hopped instead of properly flying. The development of this technology was unfortunately halted due to the beginning of the First World War. Today, there are at least 15 companies that aim to develop a flying personal vehicle in the near future. Many of these are in the United States, but there are also some in the Netherlands, the UK, France, Germany, Russia, among others (Singh, 2017). Besides startups, there are also giant companies involved in this industry. For example, the airplane manufacturer Airbus proposed two concept vehicles that would work on vertical take-off and landing (VTOL), an essential technology for a rapid development of flying vehicles (Markoff, 2017).

Moreover, the recent developments of flying vehicles technology are quite diverse, ranging from road-type cars that turn into a flying vehicle, to small boats that hover about water and to drone-like multicopters, either autonomous or piloted by a human (Roberts & Milford, 2017). It will be exciting to find out which type of flying vehicle will gain momentum and enter the mainstream. It must be mentioned though, that this will be possible only with the support of governments and lawmakers. A first step for this has been done by the Government of Dubai, which announced in February 2017 a new project called autonomous aerial taxi (AAT) (Ward, 2017). The AAT is an autonomous 2-seated Volcocopter with 18 motors, aimed to make the travellers safe against system failures. It is powered by electricity, thus being environmentally friendly, has a maximum flight time of half an hour at speeds of 50 km/h and a top speed of 100 km/h. The goal of AATs is to eliminate the increasing issue of traffic congestion in Dubai The first test for the AAT drone took place at the end of September 2017 (Ong, 2017).

Right now, the perspectives of near-future availability of flying vehicles are promising. Thus, the question is not if flying vehicles will be available, but when will they be available and which type of flying car will dominate the market. Obviously, there will be several hurdles needed to be overcame, such as the regulations in case of accidents, requirements of pilot licenses and so on. However, a first step would be to convince the majority of people who are afraid of this revolutionary technology that the future is happening in front of our eyes.

Markoff, J. (2017) No Longer a Dream: Silicon Valley Takes On the Flying Car. [online] NY Times. Available at: https://www.nytimes.com/2017/04/24/technology/flying-car-technology.html . Retrieved on October 9th 2017

Milo, P. (2010) Flying car Dreams Take Off Again. [online] Forbes. Available at: https://www.forbes.com/2010/05/04/flying-car-department-of-defense-autos-history-opinions-contributors-paul-milo.html . Retrieved on October 9th 2017

Milford, M., Roberts, J. (2017) The future of flying cars: science fact or science fiction? [online] The Conversation. Available at: http://theconversation.com/the-future-of-flying-cars-science-fact-or-science-fiction-76701 . Retrieved on October 9th 2017

Ong, T. (2017) Dubai starts testing crewless two-person ‘flying taxis’ [online] The Verge. Available at: https://www.theverge.com/2017/9/26/16365614/dubai-testing-uncrewed-two-person-flying-taxis-volocopter . Retrieved on October 9th 2017

Singh, S. (2017) Flying Cars are close to moving from fiction to reality. [online] Forbes. Available at: https://www.forbes.com/sites/sarwantsingh/2017/06/05/flying-cars-from-fiction-to-reality/#5c2d50f34b46 . Retrieved on October 9th 2017

Ward, T. (2017) Dubai’s Autonomous Flying Taxi Service Will Be Ready for Takeoff This Year. [online] Futurism. Available at: https://futurism.com/dubais-autonomous-flying-taxi-service-will-be-ready-for-takeoff-this-year/ . Retrieved on October 9th 2017

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