Posted 10 months ago | by Catoshi Nakamoto
The SEC’s case against Ripple Labs has been dragging on for much longer than expected, but it seems that it could come to a close any day now. If you pay attention to the moves that Ripple has been making behind the scenes, you can see they are pushing along with business as usual, despite these regulatory threats. Many of the details in the case have been sealed from the view of the public, so there has been no official word about how the case is going, which means that there is no way that the market could have really priced this into XRP’s current valuation. If they are successful or manage to escape serious consequences, many people will be caught off guard, and the price will likely rally to new all-time highs and beyond.Read More
Let’s get it.
Welcome to BitBoy Crypto. Home of the Bitsquad, the largest crypto community in all the interwebs. My name is Ben. Every day on this channel I show YOU how to MAKE MONEY in Crypto. If you like money and crypto then make sure to hit that subscribe button. In this video we’re going to review some of the products offered by Ripple Labs and discuss how they can radically change the legacy banking system.
I know that many of you would like to see the traditional system entirely replaced, I feel the same way, and I think that this vision could become a reality in the next several decades, but it’s not a realistic goal in the short-term. There is going to need to be a transition phase where some blockchain startups work with the banks and bring them into our system. If an open blockchain network can provide value to these institutions, they will have no choice but to change their business models to match the standards of the crypto industry. It’s no secret that Ripple is positioned for this task better than any other project in the industry. Ripples corporate outreach goes all the way back to 2004, so the company was building relationships in the legacy system years before Bitcoin and the first crypto boom. Ripple was also experimenting with distributed ledger technology, so they were quick to recognize the potential of crypto, and launched XRP in 2012 when the industry was just getting started. Most blockchains have been developed as networks that exist outside of the traditional system, which has been a great thing and led to an incredible amount of innovation in this field, but Ripple continued to focus on strengthening its existing relationships with institutions and offering solutions to improve their payment rails. Ripple quickly began to develop a suite of products designed to make payments easier for banks and to improve their businesses with blockchain technology. Initially these products were branded separately with names like xVia and xCurrent, but they were later combined with a few other services to form what is now known as RippleNet. The name of another service, previously called XRapid, was also changed during the rebrand. This service is now known as “On Demand Liquidity,” and it is a key component in the RippleNet ecosystem. The consolidation and rebranding of these offerings has made Ripple’s network a bit easier to understand, but many industry insiders suspect that these actions were taken to protect Ripple if XRP was deemed to be a security by the SEC. Some other changes were made to XRP’s utility as a part of this process as well. The XRP asset was not always needed to use Ripple’s software, but now it is being used to provide liquidity to the network as a part of the ODL service.
Ripples On-Demand Liquidity or ODL service uses the XRP asset to provide liquidity to the network, so banks can use it as a bridge currency to streamline settlement times for international payments. One of the reasons that it takes so long to process international payments is the need to exchange between currencies. Banks on each side of the transaction need to have various currencies on hand, or they need to manually go through the process of exchanging currency every time someone makes an international transaction. With Ripple’s ODL service, banks and payment providers will be able to use XRP to send value across borders without exchanging currencies. This will also allow for nearly instant settlement times, something that is physically impossible under the current system, which usually requires a few days for processing, and sometimes it even takes much longer than that.
The company Ripple Labs has also argued that the XRP asset is not under their control because it is open source, and any other firms can freely use the blockchain if they wish. This is likely one of the arguments that will be made in Ripple’s court case against the SEC.
The evidence has been mounting that Ripple will get off with a slap on the wrist and only need to pay a small fine to keep the regulators at bay, just as we have seen with other similar cases from the ICO era. If that happens, Ripple will essentially have the regulatory permission to start working with banks, just as the banks are finally starting to warm up to this technology.
When banks actually see what RippleNet is capable of, it’s going to be hard for them to keep using the same ancient technology that they’ve been using for the past several decades. Traditional institutions will be rushing to patch together their own blockchain solutions to compete with Ripple, but their products won’t even come close because they are not as familiar with the technology and they are years behind on development.
RippleNet creates a blockchain of banks and financial institutions that are all plugged into the same network, allowing them to transfer money and information much faster and cheaper than ever before. Modern banking involves a variety of different intermediaries who need to process the payments across numerous jurisdictions and platforms, and each step along the way, the transaction is slowed down while the funds are verified, and of course every single one of these intermediaries need to get paid too. If they had things their way, it would stay like this forever, but they are now being forced to compete with fintech startups like CashApp and Venmo, along with crypto assets, which both offer a far better user experience. This is exactly how the RippleNet software is being pitched to institutions. This is the kind of network that they are going to need to use if they want to stay relevant in the new digital landscape, and Ripple Labs has been working for nearly a decade to provide products and services for this unique use-case.
Ripple will even be offering lines of credit for financial institutions, that will make it even more enticing for them to use the network. This will allow them to take advantage of Ripple’s services without a massive upfront investment, which is a very smart way for them to get their foot in the door. In the years to come, Ripple will likely expand their suite of products and offer new services as the industry evolves. As we have seen with the incoming launch of the Flare Network, Ripple continues to contribute to the blockchain industry and they are one of the few development teams working on products specifically targeted at banks and traditional finance.
But that’s all I got, be blessed. BitBoy Out!