How Ripple Works – Gateways and Pathways

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How Ripple Works – Gateways and Pathways

Ripple is the first open network for money. It’s a network for financial transactions in the same way the internet is a network for information. Ripple can easily make transactions of any kind.

Here’s how it works. Ripples, also called XRPs are the native currency of the Ripple network. Ripples can be sent instantly to anyone with a Ripple account. To make transactions in other currencies, the Ripple network uses gateways and pathways.

Okay, what is a gateway? [00:30] A gateway helps you put money into a network. For example, a bank puts money into the banking network and PayPal puts money into the PayPal network. A Ripple gateway lets you put money into the Ripple network. You send one hundred dollars to a Ripple gateway and one hundred dollars goes into your Ripple account. Now you can send money within the Ripple network.

Ripple gateways have many advantages over banks, PayPal and other existing financial institutions such as lower fees and instant transfers. [01:00] And because everyone has access to the Ripple network, you can easily send money internationally.

What is a pathway? Pathways are the links between gateways, institutions and users that allows money to flow between them. Pathways are used for all online transactions. Before Ripple, pathways were slow, expensive and restrictive. With Ripple, pathways are open, faster and easier to use.

Your account is controlled only by you. This means your accounts cannot be frozen and there are no arbitrary prerequisites, penalties, limits, or terms of use. [01:30] Using Ripple will feel familiar to anyone who has used online banking, only better.

Welcome to the future of money where you are in charge!

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