Ripple (XRP)’s grand project continues to take shape every other day. From the desire to see faster, cheaper, and secure cross-border payments and remittances, the platform now has eyes on the potential uses of the Internet of Value.
Likened to the Internet of Information, IoV is expected to radically change the way we make payments over long distances and across currencies. It is going to open up financial transactions, practically democratizing how we proceed with such business. To exemplify, the use of XRP as an internet of value agent will considerably lower the cost of cross-border transactions.
It is also geared towards making money transfer faster, and open up remote places to these opportunities. This will, in turn, accelerate business expansion in the society. The CEO of Ripple, Brad Garlinghouse believes faster transactions are paramount for future expansion. He said:
The use of the IoV technology will make it possible to carry out transactions and payments at the speed of information in almost every aspect of our life. For instance, our phones could be able to make payments to artists when our alarms go off with our favorite band’s song. Or apps in our homes could make orders to overseas suppliers when they notice that food supplies are finished. Even our cars could be configured to make micropayments to other vehicles on the road as we seek to beat a rush.
According to Ripple, “Not only does money move as fast as information in these examples, but the Internet of Value makes it possible to instantly fund orders and send payment across currencies. These same exchanges today could take weeks for fully settled funds to arrive.”
For this to become a reality there has to be a concerted effort by all involved in the system. The Ripple article notes that and opines that:
If Ripple excels, IoV may become a reality
XRP gains on the market, but all the hard work off the trading floor is done by Ripple. That effort has to more than double for the Internet of Value to be realized. As such, people will need to understand XRP and possibly begin using it. But wait! Is there a difference between Ripple the company and XRP the coin?
“Ripple is a centralized company investing on top of a decentralized technology called the XRP ledger.”
These are not my words but those of Ripple CEO Brad Garlinghouse. He clearly makes a distinction between the two entities, the company using the technology to market its investment solutions in the banking and financial remittances industry.
Breaking down Ripple
What is Ripple?
It is a private company headquartered in San Francisco, USA. It is a profit-making institution, unlike many of the top projects that are community-funded and thus, nonprofit. It should be noted that the company was formed sometime after XRP had been created.
Many people don’t know and seem not to really worry about the differences between XRP, its ledger, and Ripple.
The XRP, the one traded on exchanges is a digital or cryptocurrency asset much like BTC or LTC. It’s what we call the native currency by which transactions are carried out.
The XRP ledger, on the other hand, is an open-source, distributed ledger on which all transactions on the Ripple network are recorded. Contrary to misconceptions, the ledger isn’t centralized. The company behind the coin doesn’t control or own the ledger. As recently as March, the company reiterated that by saying that anyone was free to use the network, including those that feel it is possible to issue tokens.
Decentralization is a very big component of cryptocurrency, especially as envisioned by Satoshi’s whitepaper. Ripple has from the beginning maintained that they intend to continuously find ways of decentralizing the system. Though the focus is on enterprise use, long-term view is that the XRP ledger will be bigger than the company. According to a post by Ripple insights:
“While Ripple contributes to the open-source code of the XRP Ledger, we don’t own, control, or administer the XRP Ledger. The XRP Ledger is decentralized. If Ripple ceased to exist, the XRP Ledger would continue to exist.”
If the XRP ledger will continue to exist, then the Internet of Value could be a possibility in the near future. And if it materializes, it’d make Ripple (XRP) unstoppable.