Brad Garlinghouse shuts mouth of XRP doubters
Feb 03, 2018 Posted / 67395 Views
Ripple witnessed various ups and downs followed by several other downs in the month of January. It touched the peak of US$3.79 and came into limelight. And currently, the worth of XRP is mere 87 US cents.
The main objective of ripple is to serve as a mode of steady payment and become the fastest and the most cost-efficient means for financial institutes to conduct transactions globally. The market received various speculations stating that Ripple didn’t eventuate on coinbase and thus it failed to serve its main objective resulting in a huge FUD in the market.
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The following speculations have harmed the goodwill of Ripple and the members are putting efforts to gain the trust of investors again. In order to do so the CEO of Ripples, Brad Garlinghouse cleared things through a speech in a Blockchain Connect conference held at San Francisco last week.
“About 20 years ago I was the CEO of a VOIP company called DialPad and I sat in a room with Randall Stevenson, who is now the CEO of AT&T. Randall Stevenson said to me, ‘AT&T will never use IP for voice.’ I thought, ‘that’s ok, there are lots of periphery things we can solve.’ But, now, AT&T’s entire network is IP. So when I hear people say banks aren’t going to use digital assets, I [think of] Randall Stevenson saying AT&T is never going to use IP. A bank will use a product that helps them deliver a better product to their customer if it reduces their cost and it solves a real problem.”
“If you and I decide we want to [transfer] 10,000 pounds to London today, the most efficient thing to do in terms of speed is to buy an airplane ticket to San Francisco and fly it there. That’s a pretty crazy statement in a world where you can stream video from the space station, but you can’t move your own money from point A to point B. Ripple’s vision is [to ask], how do we take advantage of the technology available today to dramatically accelerate the nature of how transactions and payments happen?” - Brad Garlinghouse, Ripple CEO
Ripple uses Interledger Protocol which establishes a link between decentralized payment protocols i.e. banks. With the help of this protocol, a chain is created across multiple ledgers. In his speech, Brad also talked about the working of protocol and its validity.
“Those that say, ‘hey everything is going to be on one ledger, maybe the bitcoin blockchain,’ [well] we just don’t think that’s’ going to happen. Instead, we think about connecting ledgers in real time [and] interoperability between ledgers. So, if Cisco is building routers to TCP/IP, Ripple’s technology is building routers and connections to ILP.” - Brad Garlinghouse, Ripple CEO
Further, Brad talked about Nostro accounts and limitation accounted for them. A nostro account is held by a bank itself in another bank of some other country. Such accounts are used to pay their customers in other currency when demanded in a speedy way. Brad added to it that Ripple has a specific software for this purpose called xRapid. By opting for Ripple banks can save a lot of cash flows and hence another point in favor of using Ripple.
“There are trillions and trillions in dormant capital sitting in these pre-funded accounts around the world. When I decide to work with you, I would put pounds in your bank and you would put pesos in my bank and then we’d use a better real-time settlement system. But what if I didn’t have to pre-fund those trillions of dollars around the world. Think about how much more efficient capital could be. We think it’s a major step forward.” - Brad Garlinghouse, Ripple CEO
In the current scenario, most of the virtual currencies are facing downfall due to various factors. Ripple is one of the top three cryptocurrencies and comparatively of centralized nature is facing more criticism.
The dramatically soaring the value of Ripple to $0.73USD has disheartened many investors but the CEO managed to assure at the right stage. The investors can trust the efficient team behind Ripple and its market position which would help Ripple in turning momentum
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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