In the first chapter, we learned why the global payment system was inefficient. Let's get into the following to understand how Ripple overcomes its inefficiencies:
- Present global payment systems don't work as a system. They lack effective inter-connectivity.
- Lack of effective inter-connectivity leads to costly transaction fees and delays.
- Most data in these systems is hidden and can be easily manipulated. Hence, there's no transparency in the system.
- Lack of transparency in the system increases the chances of fraud.
- High transaction costs limits banks ability to address a large market.
- Since there's no standardization across networks, it's unreliable for people to send sensitive information with their transaction.
Ripple solves the above inefficiencies through RippleNet. It uses blockchain technologies for reliable,...
