Ripple’s Comment on the Present Scenario of the Crypto Ecosystem

Ripple’s  Comment on the Present Scenario of the Crypto Ecosystem

  • The platform has the capacity to support tokens representing cryptocurrency, fiat currency, commodities, etc.
  • During a fiat transaction, volatility risk is attached to the price along with the duration of the transaction.
  • Millions of Dollars are transacted over On-Demand Liquidity, which are at scale and which are being processed successfully.

Ripple is a U.S based technology company and currency exchange platform established by Ripple Labs Inc… The platform was built, in 2012, upon a distributed open-source protocol. The platform has the capacity to support tokens representing cryptocurrency, fiat currency, commodities, etc.

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Apart from that, Ripple utilizes blockchain technologies to facilitate transactions in order to increase its efficiency. The company employs the decentralized cryptocurrency called XRP, which by market capitalization is the second largest of its kind.

A General Note

During an interview conducted, by Jay Kim from the Jay Kim Show, in the Swell Conference conducted by Ripple, Garlinghouse, CEO of Ripple opined about the idea of an ‘Internet of Value,’ according to which value moves the same way information does.

He also underlined the huge amount of money, prefunded in accounts around the world that runs the banking sector which amounted to around 10 Tr. Dollars. He added that our economy is also overwhelmed by the advancements we have made in a short amount of time.

Garlinghouse emphasized on how confusion limits success, and how technology is being utilized behind a firewall when the economy goes to and employ integration engineers to aid with such deployments.

Transactions using fiat currencies, a low volatility asset, over a continuous period of time can lead to higher volatility risk, and for these reasons individuals dealing with cross-border transactions confronted with the fear of such volatility with respect to the difference in value transferred.

During a fiat transaction, volatility risk is attached to the price along with the duration of the transaction. However, he added that when observed one can come to the conclusion that XRP transactions have lesser volatility risk than fiat transactions over a short period of time.

This, in turn, might affect the Bitcoins due to their slow transaction rate compared to that of XRP. Although, ultimately, a product like credit default swap can be made to avoid such risks, by an individual.

Additionally, the faster phase of our economy does not necessitate such instances at present. Millions of Dollars are transacted over On-Demand Liquidity, which are at scale and which are being processed successfully, thus transgressing the experimenting phase.

He also accentuated the importance of a neutral system in the crypto market. He believes concepts like tribalism and religiousness still exist within the system which in turn will have a negative impact on the success of the crypto ecosystem which primarily depends on avoiding such aspects.

Apart from that, he opined the necessity for XRP to be public in order to develop liquidity organically before dealing with private institutions, the very reason why XRP was not made a private corporate digital asset, initially.

He added the significance of such projects, in its experimental phase, and its impacts on platforms like XRP, Bitcoin and Ethereum. The company ensured to maintain high liquidity and tight spreads but also underlined the entrance difficulty to a new market under the conditions of zero liquidity.

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Akhilesh Agnihotrihttp://www.thecoinrepublic.com
Akhilesh is an engineer and research subordinate working with thecoinrepublic.com as a part of the research team and do research work on Cryptocurrency and Blockchain. His curiosity in research and writing brings him to thecoinrepublic.com, He believes writing is all about expressing the thoughts with words and spread information backed by well-researched work.

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