Ripple (XRP): The world of technology has experienced much progress since the internet’s development in the 90’s. It is the reason why today the world can communicate through fast channels like the email or social media platforms. This was inspired by the innovation of Internet Protocol which basically facilitates the connection of different servers. In addition to the IP protocol, other protocols such as the HTTP and SMTP came up as a result.
This brings us back to the ongoing blockchain developments which are a hot topic in this decade. Ripple (XRP), the 3rd largest cryptocurrency in market cap recently integrated the Internetledger Protocol (ILP) into their network. Just like the IP, ILP will serve as a connector to the world but with an aim to facilitate payments. The ILP is an open protocol suite that enables payments to be sent to different ledgers across various jurisdictions at low costs and fast speeds.
ILP Protocol in Banking
Ripple has become a favorite within the financial services arena. This has been a good stepping stone for the coin although challenges have been inevitable. It is this reason that has made ILP an important feature for Ripple’s end game since privacy, tps and scalability in currency pairs are addressed.
ILP was integrated into xCurrent in order to enhance the rate at which transactions were being processed as well as execute request across multiple ledgers. The blockchain networks that the protocol can efficiently operate include the XRP ledger. Ripple has proven that it is quite ahead of other coins who are still working on prototypes to improve their blockchain capabilities. Once banks are on board with integrating their ledgers with the ILP, the XRP innovation will make a huge difference in the current world of global payments.
XRP & Liquidity
The current structure of banking relationships in the global payments industry is quite unbalanced. Smaller banks have found themselves paying higher costs for services due inefficient liquidity hence a decrease in the number of collaborations. However, Ripple (XRP) innovation is a possible solution for this emerging void as banks strategize on long term plans especially in the demand side of this ecosystem.
After banks have connected their ledgers to the ILP protocol, they are set to access liquidity of an open digital currency for settling purposes. Ideally, this improves their liquidity capability in addition to foreign exchange costs reduction. Ripple’s technology pools liquidity to the XRP currency which can be used to serve any contributor to the network who wishes to use xRapid for their transactions.
XRP Prospects in the Global Payments Services
Ripple prides itself in understanding long term needs of the financial services arena. The team is hopeful that the project will still be making a difference in the next five decades. First the innovation has launched tech that is right for the crypto market ‘xCurrent’. Users are able to use cryptography in securing transactions and integrate various ledgers with the XRP network.
The project which is currently gaining traction within the crypto space anticipates connecting the world of global payments fully using blockchain. Features like the xRapid tech are meant to facilitate the exchange of fiat for crypto at low costs and faster speeds than ever before.