Time to slow down a little bit and review what we have got.
Ripple is engaged in the Faster Payments Task Force by the Federal Reserve and they seem to be building the Superhighway. But why?
Ripple’s vision: Building the internet of value.
In interviews with Ripple top executive members you can hear it over and over again: We wanna remove friction in the way money moves. We will fix the plumbing of how money moves.
Today’s banking system relies heavily on the correspondent banking system which includes usually quite drastic fees (around 5%) to the correspondent banks and so called Nostro accounts, by the initiating banks prefunded accounts.
Imagine you wanna deliver something to your friend, but you have no direct access to him. You need to find someone who knows someone who knows someone who can bring that thing to your friend. Each “someone” will want to be paid for the delivery to the next station.
Ripple’s vision is to make this a direct relationship. For this purpose Ripple invented ILP (Inter Ledger Protocol). ILP is similar to TCP/IP which made the internet to what it is today, and SMTP what made email ubiquitous. ILP will make the movement of money as simple as the movement of information is today. ILP is governed by the W3C consortium and is a standard protocol anyone can use within their products.
On top of ILP Ripple built several products: xCurrent, which makes payments faster as no correspondent bank is required anymore, xRapid (which will use the digital asset XRP) which makes payments cheaper as there are no more nostro accounts required on the correspondent banks, and xVia which offers a front end which can be used in mobile apps by the end user directly or by corporates initiating payments.
We have reason to believe that all these products are available under the label “RippleNet”. The only difference seems to be which license you pay for.
Indeed Ripple is offering these software products even in the cloud (RCCloud in Japan), such that banks do not need to host it on their own servers.
We have contemplated the scenery, filled our batteries and are ready to move on. Stay tuned.
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