The beauty of social media is that you get brilliant ideas from the fans of our favorite digital assets. In this case, twitter user @WillyWonkaXRP highlighted a summarized plan of how the Ripple company intended on making XRP and its other Ripple products great, back in 2017. Although the Ripple game plan is over a year old, the basics are still there and can be seen in how the company is conducting its current business. The tweet can be seen below:
— Willy Wonka (@WillyWonkaXRP) August 6, 2018
Carrying out further investigations @WillyWonkaXRP was referring to a post by David Schwartz (Ripple CTO) back on April 27th, 2017 in a discussion on XRPchat.com. Mr. Schwartz had stated the following with regards to how Ripple products and XRP will become mainstream and be used by banks:
The abridged model is this:
1) Ripple gets banks to use its payment technology.
2) Banks integrate Ripple’s payment system into their system.
3) This helps to eliminate all the technical obstacles to banks routing payments through a crypto-currency. (Regulatory, compliance, business rules, integration effort, etcetera.)
4) Banks use the system to clear payments with each other, probably using mostly ILP. (ILP is a protocol that permits atomic, cross-ledger payments. Most importantly, it allows a “connector” to facilitate the payment even if that connector is not trusted by either the sender, the recipient, or the source and destination financial institutions.)
5) Ripple tries to make XRP the premium connector by targeting inefficient corridors.
6) If XRP can efficiently bridge X% of payments between banks that use Ripple, it will.
7) This will increase the demand for XRP as connectors need XRP to buy the destination currency for their trades.
8) If XRP is cheap to trade with other currencies, people who don’t know what currency they’ll need next may hold XRP.
9) If XRP is cheap to trade with other currencies, people who are willing to buy any currency they can get cheaply may hold XRP.
10) This can lead to a cycle of increasing demand.
Ripple may or may not succeed. Ripple’s strategy may change. But that’s Ripple’s plan, in summary.
Or, even shorter, build a massive, level playing field in which assets can compete to bridge payments, then try to make XRP a winner on that playing field.
This is an ambitious, maybe even crazy, plan. But Ripple has raised tens of millions of dollars, has over a hundred full time employees, and our successes to date speak for themselves. That is, of course, no guarantee of success.
As earlier stated, the Ripple game plan might have changed with time due to emerging technologies as well as other blockchain projects. There is also the pending lawsuits and SEC scrutiny that perhaps has led the company to look globally to expand its reach. Ripple has since opened offices in Mumbai, India, as well as SBI Holdings expanding XRP visibility through its VCTRADE crypto trading platform.
Disclaimer: This article is not meant to give financial advice. Any opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.