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Ripple’s InterLedger Protocol (ILP) is What the Internet of Value Needs to Thrive

Ripple

The Internet of Value (IoV) needs
interoperability in order to thrive. As such, open standards like Ripple’s InterLedger
Protocol could help it achieve just that.

InterLedger Protocol and Interoperability

InterLedger Protocol (ILP) was designed to solve a pressing
issue in the blockchain space; the ability of a decentralized app to purchase
resources without being restricted to a particular blockchain network. The InterLedger
Protocol aims at creating a universal network for sending value, and it would
be independent of any company or currency.

The network is composed of
independent operators that serve as decentralized exchanges. The protocol makes
it possible for users to carry out transactions natively on any blockchain of
their choice, without having to transfer their assets to a centralized platform
or a specific network for trading. With InterLedger, users can be able to send
BTC, and the recipient would automatically receive XRP or any other
cryptocurrency of their choice.

It is no brainer that for the
internet of value to achieve its primary objective and thrive, it will need interoperability ,and InterLedger Protocol just does that. The protocol is
beneficial because it helps users connect to any network or payment system in
the world without having to switch from their current networks or change the
ways the systems work.

Read: Ripple Expands Partnership With
Bill & Melinda Gates Foundation

The technology has been used to carry
out transactions by the Bank of England while the Bill & Melinda Gates
Foundation used it to power new open-source software MojaLoop. The InterLedger Protocol helped this software connect to
various payment systems and help people in the underbanked and unbanked areas
of the world have access to financial services.

Ripple’s ILP Could Help the Internet of Value Thrive

No doubt, Ripple is one of the
leading and most creative payment systems. In June 2017, the company
open-sourced the first BTC plugin for its ILP, which would help users carry out transactions across
multiple ledgers, not just the XRP ledger.

Also Read: How InterLedger Plans on
Connecting All Blockchains Belonging to XRP, ETH, BTC and More

Following the activation of the
plug-in on its ILP, Ripple proceeded to carry out a single transaction on seven
different ledgers. This singular transaction passed through private
blockchains, public networks, a traditional payment channel, and a centralized
ledger. While transactions might not pass through so many ledgers, Ripple
insisted that the test was carried out to show that their ILP can work
excellently with distributed ledgers.

Back then, Ripple CTO Stefan Thomas gave
his opinion saying “that’s where the
future is going. We think that in the future all different ledgers will be tied
together and transactions will be very seamless. So, we want to make sure that
our customers are going to be set up for success in that world.”

Ripple has banking applications that
rely on XRP, and with the interoperability feature of its ILP, the crypto
company would play a crucial role in the advent and growth of the internet of
value over the coming year. A Twitter user, seems to agree with this fact, as
he believes that money would move fast with Ripple ILP.

Ripple’s technologies are getting
adopted by banks and financial institutions all over the world, and with this
vast network at its disposal, Ripple is best placed to lead the advent of the
internet of value.

Gradually, ILP as part of Ripple’s
software, will become the standard protocol for connecting banks’ cash ledgers.
It will be an exciting journey towards that end.

The post Ripple’s InterLedger Protocol (ILP) is What the Internet of Value Needs to Thrive appeared first on Ethereum World News.

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Ripple’s XRP Global Financial System Transformation and Its Initiative Catalyst

The third largest cryptocurrency by market capitalization – XRP was initiated as an idea from its team by elaborating on what is one of the main issues that the financial-verse of the globe handles. By looking at regions and countries as they are today, there are great ways to transfer money within the location. However, no real international or cross-border platform exists that does it very speedy and efficiently.

Ripple’s XRP Comencing

As highlighted by Daniel Aranda – xSprings’ managing director during CryptoCompare MJAC Summit, that during the brain-storming on matter should be taken at hands first the team came to a conclusion that the financial industry architecture is primarily made out of banks. Additionally, that a decentralized platform would be of great help for the cross-border transaction ecosystem.

“As we were thinking about different use cases… around payments… the highest friction and pain point that we found was around cross-border. So, if you think about here in the UK, you have services like the Faster Payments Service, CHAPS, and BACSRTGS from the Bank of England, you have great payment systems that already exist on a domestic or regional level… so there is SEPA in the EU as well… but because there is no global central bank, you don’t really have a global consolidated payments system… you have layers that maybe simulate that, things like Visa and MasterCard or even SWIFT as a messaging service… And we thought that a decentralized architecture, blockchain technology, and these public ledgers could really help kind of interoperate a lot of these different systems. So, with that thesis in mind, we just started looking at markets [to see] who would be the first users, who is the right first customer to focus work.”

Keeping the above in mind, Mr. Aranda continued:

“So our software solutions, our enterprise solutions, right now, are sold to around 120 financial institutions around the world.”

When the token made its debut into the crypto-verse along with all its developments over the years, it reached very impressive stats for a digital currency. Bitcoin’s and many other’s speed cannot even get close to its confirmation time which is around 3.0 sec and a transaction’s cost of 0.1 cent.

Even that many criticize the blockchain for being centralized, less of the nodes are run from the San Francisco based firm Ripple than the other 52%. As noted out by Ripple Labs CTO David Schwartz, Bitcoin and Ethereum are considered very decentralized with the PoW protocol and idea which truly is great to start the project. However, as time goes by a few miners can control the network and the system.

The XRP Ledger uses a consensus protocol that relies on a majority of validators to record and verify transactions without incentivizing any one party (this is one of the main reasons why I began working on XRP Ledger more than six years ago). Validators are different from miners because they aren’t paid when they order and validate transactions.

Going back to Mr. Aranda and how he took the time during the Summit to speak about the Internet of Value which the team behind XRP and the other solution the company offers are trying to achieve. He added that very similar to the internet today which transfers packages of data, in IoV’s case money/value will be handled around.

  • “We think that lot of internet of value is going to operate in the same way, where you’re having servers, like validators and miners, actually being able to communicate with each other, and they are really confirming kind of the movement and creation of value and of money.”
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Ripple’s (XRP) Internet Of Value Vision And The $1 Question

The past week has been an exciting one for our dear Ripple (XRP) in the crypto markets. We saw XRP trading at $0.65 on Monday and an exciting $0.93 by Saturday, April 21st. This is a wonderful leap of 43% in less than a week. XRP is currently trading at $0.86. But this is normal for trading on Sunday is usually slow. Ethereum World News had pointed this out only 2 days ago.

The theory goes that on Sunday’s less traders are on the online exchanges than the usual weekdays and hence a notable reduction in trade volume as many opt to cash out at the end of the week. This is because Sunday has been traditionally viewed as a day of rest for many people across the globe.

Therefore, if the weekly patterns are to go by, tomorrow – Monday – will be the day Ripple sets its pace for the week. It is highly possible for us to see $1 per XRP the coming week and around Thursday, 26th April. However, the markets have ways of shocking us with news announcements that are released every minute of everyday. Sometimes the news is good and causes a pump in the markets: and sometimes the news is drastic enough to cause a market crash.

One of these good news announcements, is the recent revelation of Ripple’s vision of the Internet of Value. The vision highlights and is summaries in the following quote:

“The emerging Internet of Value is beginning to radically improve our payments experience. The financial counterpart to the Internet of Information, the Internet of Value is the ability for value to be exchanged as easily as information. Just as speed and access to information on the Web have expanded knowledge, so will an Internet of Value bring down the cost of financial services, speed up money transfer, and deliver access to the furthest reaches of the world. This Internet of Value will effectively democratize finance.”

This means that in the current digital and electronic age, you could be sitting in Costa Rica and doing business with a farmer in Malawi. Payments on the blockchain and smart contracts guaranteeing that your transactions are frictionless, fast (XRP transaction speed – 3.3 seconds) and secure. This means that we will be continually connected on a peer to peer level, and the cost of goods, services and transactions, will drastically reduce.

This vision will only be made possible if crypto and blockchain adoption continues with the current momentum. This will transfer the control of financial transactions, back to the users through decentralization and as envision by Satoshi Nakamoto.