The use-case for cryptocurrencies as methods of payment and money was one of the primary reasons it was invented.
Coil, a company started by the co-creator of the InterLedger Protocol and former CTO of Ripple, Stefan Thomas, has successfully implemented streaming XRP micropayments to prominent sites such as YouTube and Twitch. This means that the content creators on the website will be able to receive payments for just as long as the users are on the page.
This represents a move forward in payments, as actual value is being transacted to the handlers of the website in real time. To understand what this truly means, it is important to focus on what streaming payments are.
STREAM is a protocol on the ILP for the Streaming Transport for the Realtime Exchange of Assets and Messages, and is similar to the TCP seen on the Internet today. Money can be sent over the protocol, whether it be a small series of quick payments or one large payment. It will be sent using a constant ‘stream’ of micropayments.
Coil functions on the ILP and utilizes STREAM to provide content creators with the opportunity to integrate the service into their website for payments. Once the software is integrated, users who pay Coil’s flat $5 fee a month can stream payments in XRP directly to the contributor.
As David Schwartz, the CTO of Ripple stated:
“Content providers don’t need any agreement with Coil. If they provide value in exchange for funds, coil (and others) will pay them to get that value. If not, not. Universal and painless for creators.”
If Coil does reach prominence as a main method of payment, the Internet of the future will be a more organic place to produce content. For every second a user is on an article, a small amount of XRP will be sent to them. As soon as the user stops, the stream of payments also ends.
This can be extrapolated to include other services such as streaming music, video or generally contributing to content. For example, a user could watch a YouTube video for 30 seconds and be charged only for those 30 seconds.
Other uses for streaming payments include being able to pay for a certain measure of a good. For example, users of ILP could pay for just how much beer down to the milliliter they consume in a bar, as opposed to buying an established amount.
Enthusiasts who are familiar with Ripple’s vision for the Internet of Value will recognize that this effectively marks the next step in the pursuit of that future. Value is now moving as quickly as the data that websites harvest from their users, thus allowing a general movement of the economy away from data-mining for targeted advertising to a cheap, unseen alternative that works in the background for a fair economy.
For the XRP enthusiasts, this not only represents a movement in the way value is transacted but also more bullish news. This is the beginning of the movement of the XRP Ledger away from only Ripple developing applications for it, as Coil was created by Thomas after he left the company.
Binance’s CZ: If XRP is ruled as a security, it would seriously hurt US users
In a Twitter thread between Joseph Young, analyst and investor and Changpeng Zhao, the founder and CEO of Binance, the two engaged in a conversation regarding the Ripple combined class-action lawsuit. The case has been going on for a long time and has been bouncing back and forth between the State and Federal Court, pleading a decision on whether XRP is a security or not.
Young, in his tweet, connected the case with the leading cryptocurrency platform, Coinbase, not adding XRP as a trading asset on its exchange. He stated that the lawsuit might be playing a role in the platform’s decision to resist the listing of XRP. In his words:
“Coinbase has been listing everything in crypto apart from XRP. It says it may add every asset above a certain level like the stock market but still no XRP. Savage.
On a serious note, it’s likely the pending federal court case against Ripple is holding them back for now.”
Here, Changpeng Zhao aka CZ, propagated his view on the matter, stating that the case could go on for years. Furthermore, if the plaintiffs win and XRP is tagged as security, then a lot of US users would face consequences, he implied. The whole tweet read:
“The court case may take years. But if XRP is ruled as a security, it would seriously hurt a lot of US users, and to a certain extent, other users around the world too. It certainly doesn’t look like a security to me, but that’s just one person’s opinion.”
To this, Young reverted and mentioned Ripple’s legal team’s decision to remove the legal suit to the apex court. He also pushed it as a point that clearly displays the company’s confidence in winning the case.
At present, the financial regulatory body of the US Securities and Commission Exchange [SEC] does not rule in favor of XRP being a security. Earlier this year, a former employee of the SEC claimed that the digital asset does not pass the four criteria of the Howey Test, hence, certainly does not qualify to be registered under securities.
Ripple official claims that in time banks will adopt cryptocurrencies but before that it will be small companies
In the recently concluded Impact Fintech 2018, Ross D’Arcy, the Sales Director of Ripple, spoke about Ripple’s upcoming developments and the organization’s aim to solve use cases. D’Arcy stated that Ripple aspires to get utility out of the software with the single focus of making cross-border transactions simple and effective. According to him:
“We are not doing any POC’s or science experiments but rather solving real use cases.”
D’Arcy went on to say that Ripple aims to solve the connectivity issues with banks using xVia,xRapid and xCurrent. He also opined that the payment networks of today cannot be trusted and are opaque. His statement also covered the fact that the current networks require for a lot of conditions to be fulfilled, which are done away with the use of digital assets. The Ripple official added:
“ Imagine a person in Nigeria wants to send money to someone in Mexico. This process has to carry through a process that has governed banking for over 400 years. With Ripple’s products there are no restrictions and you don’t even need to hold the destination currency. “
The discussion also informed users of Ripple’s plan to establish the Internet of Value that is aimed to transfer value across the world just like data. D’Arcy added that digital assets will solve the liquidity problems in banks by freeing up a lot of capital. This can be done by XRP’s promise of fund settlement in just seconds.
He was frank enough to admit that banks will take some time to adopt this technology and that small companies will be the first adopters of the technology. In his words:
“Once cryptocurrency is slightly more regulated and a calm approach is taken then banks will realize that digital assets can be used to tackle specific use cases and reap benefits from it. I suggest that banks shold embrace the technology.”
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