David Schwartz, the CTO of Ripple explained the need for a complete restructuring of payments and how blockchain and purpose-built technology will help enforce it during ‘We are Developers’ conference in Berlin on June 8.
The way information flows in the present world is without friction and seamlessly, however, the same cannot be said for the payments; this is due to the lack of necessary developments in that sector and due to the presence of massive friction in the flow of payments, in the form of third party members, etc.
Bitcoin was brought to life for the sole purpose of improving payments and escaping the clutches of centralization, however, it has been a fairly obstacle-filled road for the king coin. Other cryptocurrencies like Bitcoin Cash or XRP are closer to achieving Bitcoin’s goal.
David Schwartz explained how Ripple is trying to solve the payments problem by improving cross-border payments via their blockchain-based products. Schwartz added that blockchains or cryptocurrencies have not solved payment problems but instead created “a newer sexier version of the same problems”, which was that the blockchains not communicating with each other.
Comparing the development of the Internet in the nascent stages and how most of it revolved around the I.L.P., Schwartz said that the same has to happen with blockchains and that no matter how many blockchains, they should be able to communicate with each other. Interledger Protocol helps blockchains do exactly that, said Schwartz.
“I don’t know what people are going to use micropayments for… you can make a $1000 payment with a large number of micropayments and there are tremendous advantages to doing things that way…So kind of the same things that we do with routing, multipath, and VPN, and you can do all of those things with money and ILP.”
In addition, Schwartz said that if his guess about micropayments was right, then there would be a massive revolution around how the money operates with software, which would open up multiple opportunities and multi-billion dollar industry around it.
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Akash is your usual Mechie with an unusual interest in cryptos and day trading, ergo, a full-time journalist at AMBCrypto. Holds XRP due to peer pressure but otherwise found day trading with what little capital that he owns.