Ripple is known for its contributions and constant effort towards their vision for the Internet of Value. Their products and cryptocurrencies reflect their drive towards realizing this vision.
With the level of involvement they have, it is natural for the question to arise as to why Ripple would support this venture in the first place. Ripple’s Chief Cryptographer, David Schwartz, clarified this while speaking at MoneyConf. When asked about why Ripple is supporting the Internet of Value, Schwartz said that Ripple is ready to play on a level playing field with other competitors.
He also said that the XRP token will win on a level playing field with other cryptos. XRP is faster, cheaper and perfectly fit for the use-case, said Schwartz. He stated that the Internet of Value was not a winner-take-all scenario, as different cryptos will be utilized in different use cases.
He said that assets would be more valuable if all of them can interoperate. This would allow for the specialization of specific use-case scenario tokens. An open system will be beneficial for all participants, according to David.
On the 20-year vision for the Internet of Value, Schwartz spoke about the transactions conducted. He said:
“Payments should be so seamless, so fast, and so cheap that we don’t think about it. 20 years is a good time when payments will be like that.”
When asked on how to prevent disruptive competition in the IoV space, Schwartz stated that different cryptocurrencies have different use-cases. The stratification of cryptos by use-case has already been observed in the market, said David.
He quoted the established use-cases of the top 3 cryptocurrencies, saying Bitcoin [BTC] is used as a store of value, Ethereum [ETH] is used for smart contracts and Ripple’s XRP as liquidity for cross-border payments. He also said that if we could move value across blockchains that would be the “best outcome”.
Even as individuals begin to see the different use-cases, Schwartz stated that the market itself was speculative. He also stated that real users will settle out volatility in the market saying:“The market does not care about use-cases. I think people should focus on technology. Part of the reason marketplaces are volatile is because of market makers and speculators. We will see bizarre behaviours until real use.”
His words may provide little comfort to investors, as the market recently experienced a crash at the beginning of this week. Will speculation and prediction give way to so-called ‘smart’ investing? Only time will tell.