Ripple offers various payment solutions for businesses, payment service providers and financial institutions, mainly to enable them to process cross-border credit transfers on favorable terms. Online transfers with a traditional bank often lead to disproportionately high costs and long waiting times. With liquidity on demand (ODL), transactions can be completed in seconds. According to Ripple CTO David Schwartz, under certain conditions, transactions can be processed without the use of XRP.
RippleNet and ODL offer complete solutions
The founder and chief developer of utility-scan.com asked Schwartz on Twitter if ODL could work without the corresponding XRP infrastructure . The main question was whether the technology could be used by companies without buying or selling XRP :
Hey David Schwartz regarding the ODL implementation: is a DT necessarily attached to a single client? Are DTs borrowed from a pool and can they change customers? Can ODL work in some cases without buying / selling XRP , for example, if the customer has a large reserve of XRP
Schwartz explains that users will be able to choose from a variety of options depending on the infrastructure already in place. Ripple normally works with a Fiat-to-Fiat gateway, but the payment system also works without XRP :
We chose to do fiat in fiat first for several reasons, but the most important is that it can work without any XRP infrastructure , so could be deployed faster. Then we could use XRP where it could provide the most impact with a ready supply of customers and payments to work with.
Ripple's CTO further describes that an individual analysis is performed for each customer to determine which infrastructure can be used and installed in the most cost-effective manner. Twitter user "AG" aptly summed up that Ripple customers can join RippleNet in the first step, which also works without the corresponding XRP infrastructure .
Normally costs and time can already be saved by using RippleNet. If the conditions for using ODL are met, the company can also switch to ODL and also benefit from the advantages. Recently, the Saudi Arabian Monetary Authority announced that the partnership with Ripple could save $ 400 billion a year.
Cloud solution facilitates deployment and use
At the end of May, Ripple launched a cloud solution that allows customers to start 5 weeks faster than with a previous on-site solution. By integrating a Ripple Payment Object (RPO), the RippleNet cloud allows businesses to send and receive payments using a standardized procedure.
As PassionCrypto reported last week, Brazilian bank Banco Rendimento is the first bank in the world to successfully migrate to the RippleNet cloud. The RippleNet Cloud allows faster configuration of Ripple's payment solutions, especially in times of corona virus.
