CryptoTank (@Tank2033js), a crypto researcher and investor, recently delved into XRP’s important role within Ripple’s ecosystem on X. The community often debates XRP’s importance, particularly its necessity given the existence of services like xCurrent, xRapid, and xVia that don’t require XRP to function.
CryptoTank reveals that these services play complementary roles within the ecosystem, and he highlights the indispensable role of XRP, as these services will use and support the asset even though they do not always require it.
Ripple’s Broad Range of Services
CryptoTank noted that Ripple designed xCurrent to enhance messaging and settlement processes for banks, effectively positioning itself as a superior alternative to SWIFT. By connecting different banking ledgers through the Interledger Protocol (ILP), xCurrent facilitates seamless cross-border transactions. However, it does not directly address liquidity needs or provide liquidity for transaction settlements.
In contrast, xRapid specifically addresses the liquidity challenges faced by banks. Utilizing XRP for liquidity via On-Demand Liquidity (ODL), xRapid is a bridge asset in transactions. This service enables banks to access deep liquidity pools created on the XRP Ledger’s (XRPL) Automated Market Maker (AMM), which pairs various assets and currencies.
CryptoTank pointed out that by leveraging xRapid, banks can maintain transaction privacy while accessing necessary liquidity, a fundamental requirement in the banking industry.
xVia acts as a browser extension or API, connecting users to Ripple’s services and serving as a gateway for payment instructions and confirmations. It facilitates the use of Ripple’s network without requiring users to hold or transact directly with the token.
These services—xCurrent, xRapid, and xVia—are designed to complement the digital asset rather than replace it. CryptoTank believes anyone saying these services will replace XRP has “lost the plot.”
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
XRP’s Importance in the Ecosystem
CryptoTank pointed out that the XRPL employs an algorithm to find the most efficient path for each payment, prioritizing XRP but allowing alternative pathways when more advantageous. Notably, Ripple Chief Technology Officer (CTO) David Schwartz previously explained that each asset would be used where it works best.
It is worth noting that some services mentioned may no longer be in operation as Ripple continuously evolves its offerings to meet market demands. Nevertheless, CryptoTank’s analysis offers valuable insights into the workings of Ripple’s ecosystem and XRP’s critical role.
CryptoTank drew attention to previous statements from Ripple CEO Brad Garlinghouse. He once described the digital asset as the heart of everything Ripple does and the key to it all. In May, Garlinghouse also revealed artwork he owned suggesting that “XRP will power the world,” and showing the confidence he and the community have in this revolutionary digital asset.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
The post Why Would Banks Use XRP When Ripple Has xrapid, xcurrent? Expert Explains appeared first on Times Tabloid.
