According to the chief cryptographer Ripple, David Schwartz, banks are unlikely to use blocking technology for cross-border transfers in the foreseeable future.
In his opinion, banks are aware of the potential for blockage, which can reduce costs and reduce the time for the implementation of transactions. However, the level of scalability of technology is still low, which prevents the widespread introduction of blockage on a global scale.
The representative of Ripple claims that the Interledger protocol and, in particular, the xCurrent solution provide the ability to conduct instant payments. This, in his opinion, gives Ripple significant competitive advantages compared to other payment networks.
At the same time, Schwarz calls the xCurrent solution “unallocated registry”. So, in the case of xCurrent, network nodes do not have access to the common registry, which is the basis for block-network networks like Ethereum (ETH).
“From many of our customers, we hear about the need to ensure privacy and the ability to process thousands of transactions per second,” Schwartz said.
According to another representative of Ripple Markus Tremacher, the company presented a project in which banks can carry out “classic” payments on the block. However, the financial institutions were skeptical of the new initiative, citing the fact that “it is not so easy to transfer the whole world to a blockade.”
Recall, in May, Ripple presented the results of the first pilot testing of xRapid technology, which uses the XRP token.