Posted on

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.”
Girl in a jacket

loading…

Posted on

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.