Ripple has long been hated in the cryptocurrency community for using the technology to work with banks and supplement existing financial institutions and regulations. They recently elaborated on this form of approach, with Dilip Rao, their Global Head for Infrastructure Innovation, speaking at the Global Islamic Economic Summit in Dubai.
Rao revealed how blockchain and Distributed Ledger Technology were said to be the “solution to all of our problems”. He then went on to speak about a “source of truth that does not have a central authority”, an innovation in the blockchain space, and then looked at how they could use that to solve “real-world problems”. He stated:
“Ripple has been working with banks rather than against them for the last five years to develop a solution that will be acceptable to them meet the compliance requirements of regulators around the world to then deliver a high-speed real-time cross-border payment platform.”
He spoke about the “friction” between networks in the current time frame, and stated that expecting one blockchain to cover the whole world is like sticking to one service provider on the Internet. This led to Rao speaking about interoperability in the blockchain space, which Ripple has aimed to do through the InterLedger Protocol. He said:
“This is an open protocol invented by Ripple but now being run as an open standard by more than 300 organizations that participate in the W3C Committee for it. The idea here is that a bunch of people who have an interest in making the movement of value frictionless will collaborate to build a new protocol to enable ledgers to connect with each other.”
This was drawn through parallels of the development of the Internet upon standard protocols such as TCP/IP, with the InterLedger Protocol allowing for communication with various different ledgers. This is also coupled with Ripple’s ongoing development in Codius, their dedicated smart contract platform, revealed Rao.
Rao then spoke about the XRP Ledger, calling it the “fastest on the planet” at about “1,500 transactions per second”. He went on to say:
“[XRP] can be utilized wherever public ledgers are fit for purpose. A lot of our products do not use public ledgers because banks want secrecy and privacy in their transactions but they will have the opportunity to use a crypto-asset…to solve for liquidity. While technology can give you interoperability through connections, XRP as a digital token can solve for the lack of liquidity in many corridors as a bridging asset to convert from one to the other.”
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Facebook’s entry a positive signal to blockchain & crypto markets, claims Ripple’s Brad Garlinghouse
As the influx of new players into the crypto-ecosystem grows, the industry has come a long way from its inception a decade ago. The industry has forced mainstream institutions such as Facebook and JP Morgan to join the race. While the world speculates on Facebook’s next move as a global power, in-house competitor Ripple is on a partnership spree to ensure a comfortable XRP market.
To clear out the FUD, Ripple CEO Brad Garlinghouse discussed the intent and roadmap behind the recent MoneyGram-Ripple partnership. While enabling XRP-powered money transfer services, Ripple’s $30 million investment seems to be part of a game plan for increased adoption.
Garlinghouse shared his optimism for the move after his company’s beta network recently matched Western Union’s performance for cross-border payments. Further, he is certain about Ripple’s ability to improve MoneyGram’s infrastructure by eliminating the traditional pre-funding process. Garlinghouse added,
“Our (Ripple’s) product allows companies to avoid pre-funds and just shoot the payments in real time. That’s a massive savings in terms of efficiency and capital costs.”
As a result of this partnership, Ripple will hold a 6% – 10% share in MoneyGram, helping the crypto giant’s vision to enable mass adoption. Further, the CEO correlated the development with the company’s ultimate roadmap. He said,
“We will continue to build out and expand the number of corridors. We work with over 200 banks and financial institutions today.”
Garlinghouse also shared Ripple’s contributions toward enabling liquidity in the Mexican and Philippines market. Although the XRP market stands as one of the biggest disruptors in the cryptospace, Garlinghouse applauded Facebook’s recent Libra initiative. He commented,
“It’s incredibly positive signal to the overall blockchain and crypto market to have a player like Facebook leaning in.”
While a positive sign for the crypto-market, it will be interesting to see the direction Facebook’s crypto-initiative takes, which is currently speculated to be pointing toward a consumer-oriented payment system.
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