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Ripple official says, “Distributed ledger technology will be the Ultimate Intel Inside”

Akash Anand

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Ripple official says, "Distributed ledger technology will be the Ultimate Intel Inside"
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In an interview with Finextra.com on 21st September, Marcus Treacher, the Global Head of Strategic Accounts at Ripple, spoke about distributed ledger technologies and its impact on the economic ecosystem. Treacher focused on the ease of payment that is provided by ledger technology and how it can be used to make people’s life easier.

Treacher stated that distributed ledger technology allows cross-border payments to be interconnected with each other much like payments within a country that does not require a lot of gateway entries. He said that the paradigm shift is huge with the potential to completely overhaul the system that is already set in place.

According to Treacher, the main advantage of the technology is how it eliminates reconciliation work, chasing of funds and the lack of clarity from the ambit of the functioning of any financial body. He also said that this power possessed by the concept of distributed ledger technology has to be fully utilized, especially when it comes to the financial infrastructure present in the ecosystem right now.

The Ripple official also added that the current infrastructure is more conducive to retail investors rather than institutional investors, making it more complicated than the S & P ecosystem. He went on to say that oversight of problems is a big issue in the cryptosphere, which does not attract institutional investors. He further added:

“It is very easy to make the case for distributed ledger technology. The theory is rock solid, only the groundwork takes some time. The technology provides a much better delivery layer, that is, a foundation upon which future applications can be built. Think of it as the ultimate Intel Inside for the payments network.”

Treacher added the analogy that using distributed ledger technology is like turbocharging a car for better performance, where the car is the entire fintech ecosystem. He also spoke about how the advent of the PSD2 will revolutionize the financial world.

The PSD2 or the Reversed Payment Service Directive is a regulatory notification released by the European Union that would open up the markets to a variety of new investors and companies. This, some reports say, will reduce the monopoly of banks in the financial space.

With the implementation of the PSD2, banks will be pressured to make transactions much faster and provide better functionalities to the users, said Treacher. He also went on to say:

“With distributed ledger technology, the likes of Ripple will make it easier for banks to run at the same pace as that of other organizations.”

Ripple

Ripple’s David Schwartz: Distributed ledger is important as everyone on it enforces the rules

Akash Anand

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Ripple's David Schwartz: The distributed ledger is important as everyone on it enforces the rules
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The cryptocurrency market has been buckling under the weight of the bear for some time now which has forced a lot of popular individuals to speak about the crash as well as assure users to HODL. In a recent talk with the Internet History Podcast, David Schwartz, the Chief Technology Officer of Ripple spoke about the early days of cryptocurrencies as well as the formation of Ripple and XRP.

Schwartz, who has been called ‘Ripple’s trillion dollar man’ spoke about his initial stint with cryptography and what directed him onto the path of digital assets. He stated that he had worked on problems plaguing the internet with the key focus being on security and crowd storage.

According to him, the pressing issue was keeping data in a cloud and also keeping them secure, a concept unheard of at that time. In his words:

“Multiplying the value of information was key. We all had technology focused on transferring data but nothing related to value as such.”

Schwartz added that Ripple and XRP’s entry into the market all began when public encryption was made available to the masses. He stated that in the early days everyone was just using symmetric encryption that was not suitable for commerce. With the advent of public encryption, people in technology realized that money was the only commodity that was left to be transferred quickly and safely.

The Ripple official also spoke about early technologies that paved the way for Bitcoin to catch the public’s eye. He spoke about how concepts like RipplePay and Hash Cash laid the foundation for Ripple and Bitcoin to build upon. The CTO stated that post the arrival of Satoshi Nakamoto, users were given an ecosystem that does not require a trusted third party. According to him:

“ Unlike traditional systems, the absence of a trusted party makes it easier and more secure for data to move around. The system was built on the idea that everybody in the ecosystem enforces the rules and it’s not just one governing body.”

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Bitcoin

Bitcoin’s divisibility and transportability make it much more flexible than digital gold

Priya

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Bitcoin's divisibility and transportability make it much more flexible than digital gold
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Andreas Antonopoulos, the author of Mastering Bitcoin and a Bitcoin proponent, spoke about Bitcoin as a digital currency and whether it would be limited to being just that, in his latest Q&A session on Youtube.

The author was asked about the possibility of Bitcoin becoming the world’s reserve currency, a digital gold and whether other cryptocurrencies would be used as a day-to-day currency. To which, he said:

“I don’t know. I think it would surprise me, actually, if Bitcoin could only fit into the niche of ‘digital gold.’ Bitcoin has characteristics of divisibility and transportability that make it… much more flexible than digital gold.”

Antonopoulos stated that gold is not a good medium of exchanges, because of the difficulty related to verifying whether it is real. He also stated that the store of value is “heavy to carry”, adding that the more one tries to make it fungible and divides it into smaller pieces, the harder it gets to verify its authenticity. According to him, verifying gold in larger amounts, which are stamped by reputable third parties, is easier.

“Then the cost of storing and securing gold is so high that it is better done in a custodial manner, where you put it in a vault and have professionals guarding it. You [are left] with a little paper certificate [of ownership], which have other problems like hypothecation. [All of this] makes it difficult to use [gold] directly as a medium of exchange.”

This was followed by the author remarking that these problems are not prevalent in Bitcoin, even though there is “greater complexity” when it comes to securing the cryptocurrency. He went on to say that this would cause some pressure towards third-party custodians, however, if that pressure is going to be lesser in comparison to the current system, it would still be a “more decentralized future”.

“The ability to transport bitcoin very quickly, in very small amounts [or very large amounts], [including] with second-layer networks that are even faster [and smaller] at the level of microtransactions”

Moreover, the Bitcoin proponent thinks that Bitcoin could be a “very effective” medium of exchange and store of value, adding that the volatility would decrease through use and volume, wherein the currency would not be witnessing a major price fluctuation making it “less speculative in nature”.

“That doesn’t mean there won’t be other coins which [are used] for everyday currency. I think there will be [others]. I don’t think Bitcoin will be just digital gold. It may become a world reserve currency, but I think the concept of a unitary world reserve currency [would] no longer be relevant.”

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