Asheesh Birla, Senior VP of Product at Ripple, published the results of the first xRapid pilot today. He spoke about how this move was in line with Ripple’s vision for the Internet of Value. xRapid is an important step in realizing the goal of improving the speed and cost of cross-border payments, which could provide ‘trillions’ to the global economy.
xRapid utilizes the XRP token to act as a bridge currency to make cross-border payments instantaneous through the Ripple blockchain. The efficiency of xRapid is seen in the aggregated results of the several pilots conducted for xRapid.
For payments in a so-called ‘critical remittance corridor’ between the United States and Mexico, financial institutions that utilized the xRapid solution saw a savings of 40-70% compared to what they normally pay ForEx brokers. The average xRapid payment took over two minutes, which is leaps and bounds faster than what we see today, which, on an average, is around two to three days.
Birla explained the speedy transaction speed, saying:
“The portion of the transfer that relies on the XRP Ledger takes two to three seconds, with the additional processing time attributed to movement across the intermediary digital asset exchanges and local payment rails.”
He then goes on to explain how exactly xRapid functions. It has three stages, with a financial institution connecting directly to the digital asset exchanges in the originating and destination corridors. The currency from the originating corridor is liquidated into XRP, which is then exchanged into the destination currency on the destination side. After this transaction, the funds are ‘sent out on the local rails of the destination country for payout’. The transaction also features end-to-end tracking, resulting in a cheaper and faster cross-border payment.
He ends by saying:
“This is the realization of the vision for an Internet of Value — allowing for a new fluid movement of money that will benefit the entire global economy, from families that rely on remittance payments, to corporations looking to expand and scale into markets in new countries.”
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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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