Interledger Protocol Aims to Create Payment Gateway Between XRP and ETH

By May 16, 2017Bitcoin Business
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Interledger Protocol Aims to Create Payment Gateway Between XRP and ETH

Interesting things continue to happen for Ripple as we speak. The XRP price and an overall market cap continues to grow, but that is only part of the bigger story. It appears the Interledger Protocol is preparing for a major test. This test involves a preview of a payment demo between XRP and Ether. An interesting concept, to say the least.

What Is Interledger Protocol Planning With XRP?

On paper, it sounds like the project will establish payment channels between XRP and ETH. Having two of the three most valuable digital assets work together for payments is an intriguing thought. In an email sent out to all members, it is evident there are four things on the agenda. One of those topics revolves around Integration of XRP-PayChan, XRP-Escrow, and Ethereum.

Albeit this sounds like a very exciting announcement, it is somewhat difficult to understand what this means. We do know the Interledger Protocol connects banks, digital wallets, and clearing houses. Moreover, it allows any coder to integrate payment solutions without requiring an agreement with a specific provider. That is quite significant, as it can reshape the future of payments altogether.

In the case of Ripple, the Interledger Protocol module can call any local ledger module to create a Ripple transaction. Said transaction has an Interledger packet attached to it and is transmitted to the Ripple Consensus ledger. If we understand it correctly, this means ETH payments can be sent over the Ripple blockchain by attaching it to XRP. More specifically, this means XRP payments and Ethereum smart contracts could create a very potent mix.

Contrary to what people believe, banks are not forced to use XRP when using Ripple. However, thanks to the Interledger Protocol, the demand may become a lot bigger. It is possible XRP will be used as a zero-risk counterparty asset for the financial sector. This demo could be quite big news for both XRP and ETH in the future, that much is evident. We will keep an eye out for any material pertaining to the demo tomorrow.

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.

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