Xpring MD Dan Aranda, in a talk with Clem Chambers, spoke about the relationship Ripple has with payment providers.
While talking about XRP as a digital asset, he spoke about the various on-ramps into the digital asset. These ramps are services such as exchanges, which allow the XRP token to be converted into dollars, euros and others. He said:
“When we’re working with MoneyGram that that’s a normal kind of very traditional like vendor relationship like we are selling them a piece of software to do cross-border payments…we’re not really offering consulting, it’s more we’re building solutions on a protocol. So think about Google on top of the Internet, you’re building software services that make the underlying protocol usable for functional economic use cases”
Aranda stated that he and Ripple are “fundamental believers in the importance of payments”. He went on to speak about how there is no existing consolidated payment system, instead, it is right now simulated through “layers” such as Visa, Mastercard and Swift. He said:
“We thought that a decentralized architecture of blockchain technology and these public ledgers could really help kind of interoperate a lot of these different systems.”
He said that Ripple has signed around 120 financial institutions around the world at the time and that they are gaining one bank per week for production contracts.
The cost savings for the bank while using Ripple’s products was also spoken about. Banks want to get past the hard cost of cross-border payments and “pass those savings on”, said Aranda. He said:
“I don’t think the real value proposition and the business case for adopting crypto based solution is going to come around cost savings. I think that’s part of it but I think there’s been a lot of focus that I think is a bit wasted on how much can these technologies really kind of remove costs or improve processes. I think it’s about growth it’s about revenue potential”
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Ripple’s initiative invests in Bolt Labs to improve secondary payment channels and expand interoperability
Ripple’s arm, Xpring which invests and incubates in companies and individuals which help improve the XRP ecosystem, invested in Bolt Labs. With the new investment, Xpring hopes to develop solutions that will help improve the security of secondary payment channels and increase the interoperability by integrating with the ILP.
Bolt is a private, off-chain scaling solution which was built on top of Z-cash, a privacy-focused cryptocurrency, has attracted more than a few well-known investors in the crypto-space and Ripple’s Xpring is one among them. In a blog, Bolt Labs said that their solution will focus not only on ZCash but also other publicly available cryptocurrencies that do not have inherent on-chain privacy features.
It also stated:
“The potential for these implementations to be networked together with technologies like Interledger opens the potential further for cross-chain interactions with these privacy guarantees baked in.”
The above statement suggests that they might have a “potential” implementation for these on Interledger Protocol [ILP]. ILP was created at Ripple developed by the Interledger W3C Community Group. ILP aims at connecting two different blockchains, to integrate two different ledgers and have seamless operations between them.
This would vastly benefit the payments industry, which is facing a revolution at the hands of a nascent technology like blockchain. Ripple, a payments provider, which is leveraging cryptocurrency and blockchain to facilitate faster payments, would benefit largely from this partnership. In addition, this could also signify a potential development on the XRP Ledger and its on-chain/off-chain privacy and the currency, XRP.
A Twitter user @XRPCentre tweeted:
“If the solutions being developed by the company are able to improve the privacy of the ILP transactions, they would also be enhancing the privacy of XRP/ILP payments, which is a very demanded feature…. It’s all about interoperability and destroying network effects. If ILP succeeds in being the best protocol for cross-protocol/ledger transactions, you’d naturally search for the best asset therein.”
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