RIPPLE Vs. SWIFT (Global Interbank Financial Telecommunication Company)

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RIPPLE Vs. SWIFT (Global Interbank Financial Telecommunication Company)

RIPPLE Vs. SWIFT (Global Interbank Financial Telecommunication Company)

SWIFT

The Global Interbank Financial Telecommunication Company (SWIFT) based in La Hulpe, Belgium, was established in 1973. Its field of activity is the transmission of financial messages via the international SWIFTNet network. Financial messages are used to facilitate cross-border money transfers. The company currently has about 2,000 employees.

SWIFT carries financial messages but does not hold accounts for its members and does not make any form of clearing or settlement.

SWIFT does not facilitate funds transfer: rather, it sends payment orders, which must be settled by correspondent accounts that the institutions have with each other. Each financial institution, to exchange banking transactions, must have a banking relationship by either being a bank or affiliating itself with one (or more) so as to enjoy those particular business features.

Also Read: Krungsri joins RippleNet: Frictionless Cross-border transactions

SWIFT has become the industry standard for syntax in financial messages. Most international interbank messages use the SWIFT network. SWIFT now manages $150 trillion in its messaging service. In 2016, an 81 million usd theft from the Bangladesh central bank via its account at the New York Federal Reserve Bank was traced to hacker penetration of SWIFT’s Alliance Access software, according to a New York Times report. It was not the first such attempt, the society acknowledged, and the security of the transfer system was undergoing new examination accordingly.

Soon after the reports of the theft from the Bangladesh central bank, a second, apparently related, attack was reported to have occurred on a commercial bank in Vietnam. Both attacks involved malware written to both issue unauthorized SWIFT messages and to conceal that the messages had been sent.

ripple-payment-protocol RIPPLE Vs. SWIFT (Global Interbank Financial Telecommunication Company)

In response to the challenge raised by Ripple, SWIFT launched its Global Payments Innovation Initiative (GPII) initiative. Using the current SWIFT messaging system and banking correspondence, which is the backbone of the old cross-border payments, the GPII is essentially a set of rules that obliges banks to behave more rationally in cross-border payments, supported by tracking payments and data to monitor their compliance with new rules. However, as you will see in the conclusions of this article, GPII is far from being a real competitor for Ripple. GDPII remains an enhanced messaging service, and Ripple has a blockchain technology.

Ripple

The company Ripple is the creator and developer of the Ripple payment protocol and exchange network. Originally named Opencoin and renamed Ripple Labs until 2015, the company was founded in 2012 and is based in San Francisco, California. Its creators are: Ryan Fugger, Jed McCaleb and Chris Larsen.

Ripple is a privately funded company. It has closed five rounds of funding, including two rounds of angel funding, one round of seed funding, one round A and one round B round.

Date Funding
type
Investor Amount
(million $)
April 2013 Angel Andreessen Horowitz, FF Angel LLC, Lightspeed Venture PartnersPantera Capital,  Vast Ventures,  Bitcoin Opportunity Fund 2.5
May 2013 Angel Google Ventures,  IDG Capital Partners 3.0
November 2013 Seed Core Innovation Capital,  Venture51, Camp One Ventures, IDG Capital Partners 3.5
May 2015 Series A IDG Capital Partners,  Seagate Technology,  AME Cloud Ventures, ChinaRock Capital Management,  China Growth Capital,  Wicklow Capital, Bitcoin Opportunity Corp, Core Innovation Capital,  Route 66 Ventures, RRE Ventures,  Vast Ventures, Venture 51 28
October 2015 Series A Santander  Inno Ventures 4
September 2016 Series B Standard Chartered,  Accenture,  SCB Digital Ventures,  SBI Holdings,  Santander InnoVenturesCME GroupSeagate Technology 55

Ripple provides one frictionless experience to send money globally using the power of blockchain. By joining Ripple’s growing, global network, financial institutions can process their customers’ payments anywhere in the world instantly, reliably and cost-effectively. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets.

businesses connect to RippleNet to send payments.

RIPPLE Vs. SWIFT (Global Interbank Financial Telecommunication Company)

By | 2017-12-21T03:56:54-07:00 December 21st, 2017|Categories: cryptocurrency news|Tags: |0 Comments

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