The CEO of Ripple, Brad Garlinghouse, recently went on the Stanford Legal podcast to speak about the current state of cross-border payments and the result it has on the global financial ecosystem. He also spoke about rewiring it with blockchain, as it was built a long time ago.
When speaking about the existing correspondent banking system, Garlinghouse spoke about how base layer innovation of the system can reduce the cost associated with cross-border payments. He stated:
“I think about the novelty of blockchain technologies is it allows two parties to transact without trust. Today, if you want to have two parties transact you have to have a trusted intermediary; that’s called a central counterparty. That central counterparty then has trust on both sides and they’re effective that transitive trust is passed in between those two.”
He went on to say that “anybody in the central counterparty business” should at least pay attention to advancements in the blockchain space. Even as we live in a world that is three decades into the Internet, Garlinghouse stated that he found it “amazing” that lots of transaction-based technologies have a central counterparty. He said:
“That takes time and friction and any type of talk about friction, it’s cost. If we do it more efficiently, we can accelerate the global industries that we’re talking about.”
On the exact use of XRP by Ripple, the CEO spoke about how Ripple Labs builds technologies on top of the XRP Ledger, which in and of itself is an open-source technology. He stated:
“Some of our products are built a hundred percent using XRP, and some have nothing to do with XRP. You could use Bitcoin for some of the products we offer. The problem is, Bitcoin has some serious scalability challenges.”
He illustrated his point with an example of paying for a coffee with Bitcoin, where the transaction itself costs around $1.8. This would effectively double the price of the coffee itself, along with the transaction occurring only after 45 minutes or so. He elaborated:
“I am personally long Bitcoin. I think Bitcoin is not going to be a panacea that some people thought it would be for many different kinds of transactions and instead you’re seeing specialize in kind of use case dynamics for different kinds of transactions.”
At this point, Garlinghouse spoke about XRP as “extremely efficient for settling payment transactions”, especially in the case of cross-border transactions. He stated that a decrease of 100 basis points in bips for a transaction for over $20 trillion is “massive savings” for financial institutions and their consumers.
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XRP TipBot comes back online after a tiny downtime; Nothing to be worried about, says Wietse Wind
XRP TipBot’s website and the corresponding application suffered a downtime on June 23, 2019 for a few hours, during which the application wasn’t showing the balance of users. The website and the API for TipBot instead, displayed a “500 Internal Error.”
A Twitter user, @BlueNETGaming, tweeted Wietse Wind, inquiring the same. Wind confirmed that it was just an “infrastructure blip,” and that there was nothing to be worried about.
Oops! Sorry! Infrastructure blip. Really easy fix but I enjoyed an offline afternoon with my girls 😇 So I only found out after some time, when I checked my phone. Monitoring, messages, calls 😇 Social media tips went through during the downtime. Sorry! 😆
— Wietse Wind (@WietseWind) June 23, 2019
XRP TipBot is probably the first and most widely accepted use-case of XRP. It leverages the transaction settling time of XRP Ledger to make tipping easy among peers on Twitter, Reddit, and other platforms, and this was the brainchild of developer Wietse Wind.
After TipBot, a lot of other cryptocurrencies have tried to mimic this idea of facilitating tipping; an example being Bitcoin’s, Tippin.Me which leveraged Lightning Network for tipping users. Although successful, it isn’t as popular as Wind’s TipBot.
The reason behind the same is that XRP Ledger allows transaction settlement in under 5 seconds, which makes tipping fast and efficient, unlike Bitcoin’s transactions which take a few minutes for transactions to be confirmed.
This is same reason why XRP is being used as a liquidity provider for cross-border payments in Ripple’s proprietary product, xRapid.
XRP community is a tightly-knit community with people who are very bullish about XRP’s success. There are equally talented developers in the community who are developing apps that help create more use-cases for XRP.
SchlaubiDev is one such developer known for developing plugins for Gmail and Microsoft Office, plugins that allow a user to send XRP over e-mails.
Ripple has identified Wind and his team’s talent and inducted them into Xpring, which finances them to help develop more community-based apps for increasing XRP use-cases.
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