According to a recent report by Global Market Insights, the blockchain market in the Asian Pacific region has seen significant progressed, thanks to the upsurge in the number of investments in blockchain-based firms. The report also made revelations that the market is expected to hit over 16 billion US dollars in the next few years, likely by 2025.
Back in 2016, the number of investments that were made in blockchain-based startups (including Ripple as it got in the game in 2013) was approximately over 130 deals. At the time, those deals brought over 545 million US dollars to the market, laying a good foundation for the market to grow by over 50 percent the following year, which saw the market gaining over 1 billion US dollars from such deals.
The increase in funds is a sign of the acceptance and continuous development of new technologies, that strive to retain and grow the number of investors in the blockchain. As a result of this, blockchain technology continues to witness a significant increase in adoption, even from traditional industries. Take the fruity relationships of Ripple (XRP) with giant financial institutions such as Banco Santander, for example.
One of the products that are keen not to be left behind in the front of innovation is the Digital Ledger Technology, which has been experiencing large growths in adoption levels. This does include not only large firms but also some of the upcoming SMEs in the world of business. Some of the giant companies that are embracing digital ledger technology into their operations include IBM, Amazon, Abra, Microsoft, Earthport, Blockstream, Asta Salotions, Bacoor, Coinbase, Blockstream, Bloq, Digital Asset Holding, BTL Group, Chain, SAP, BitSE, R3, and Ripple among many other companies.
Invoice financing is a well-known business function in both small and medium companies that are in burning need of cash. For those who might not be aware, invoice financing is the process that involves businesses trading off their invoices to third-party financers in exchange for instant funds. These invoices are traded off to financers at discounted figures which allows them to later cash with the debtors to get the full amount. It has been a different idea from Ripple blockchain as of now, but a good one, we must agree.
For example, a person who is running their business is supposed to be paid 15,000 US dollars from its debtors, but the date of payment is about a month away, but the person urgently needs cash to purchase a new machine. The person can sell off the 15,000 US dollars’ worth of invoices to a financer to get an instant 10,000 US dollars in cash. The financer can later claim the entire sum of 15,000 US dollars from the debtor creating a win-win situation for both parties. Invoice financing is big in the European Union and the US but is steadily growing in the Asian Pacific region.
Singapore Authorities Considering Ripple Blockchain-based Invoice Trading Platform
Throughout the world, blockchain technology is making data management more efficient while ensuring security and interoperability is core in their operations. Governments of countries such as Singapore are making headways in adopting this new technology by making numerous policy changes and initiatives to gain a better understanding of blockchain technology and to benefit from it maximally.
In Singapore, DBS Bank, Infocomm Development Authority of Singapore (IDA), and Standard Chartered Bank developed a proof of concept for their blockchain-based invoice trading platform. The platform uses distributed ledger technology of Ripple (XRP) to support the project for tracking invoices, reducing invoice duplication risks, backing loans to suppliers while maintaining the confidentiality of their customers.
Subsequently, the authority intends to develop a platform that will allow banks and financial institutions to convert invoices into virtual assets on a distributed ledger (of course on Ripple blockchain). Considering that participants are allocated a cryptographic identity, privacy is maintained, while the information concerning the status of the invoices seeking funds is accessible to all concerned users.
The Ripple-based project by Singapore authorities, which is yet to be given a name is predicted to be an open ecosystem that is going to allow neutral third parties to participate and verify the legitimacy of a trade document being financed.
Ripple (XRP/USD) forecast and analysis on October 23, 2018
Cryptocurrency Ripple (XRP/USD) is trading at 0.4516. Cryptocurrency quotes are trading above the moving average with a period of 55, which indicates the presence of a bullish trend for Ripple. At the moment, cryptocurrency quotes are moving near the middle border of the Bollinger Bands indicator. The test is expected to be at a level of 0.4410, from which one can expect an attempt to continue growth and further development of an upward trend with a target near the level of 0.4950.
Ripple (XRP/USD) forecast and analysis on October 23, 2018
The conservative buying area is near the lower border of the Bollinger Bands indicator strip at 0.4400. Cancellation of the option of continuing Ripple growth will be a breakdown of the lower boundaries of the Bollinger Bands indicator strip, as well as the moving average with a period of 55 and closing of the pair quotes below 0.4100, indicating a change in trend in favor of the bearish for XRP/USD. In case of a breakdown of the upper border of the Bollinger Bands indicator bands, one should expect an acceleration of growth.
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Ripple CTO David Schwartz: XRP and Ethereum Have Never Had an Outage, Have Been More Reliable This Year Than YouTube
Ripple CTO David Schwartz just made a passionate case for crypto and blockchain technology at the Money20/20 conference in Las Vegas.
At a debate on whether blockchain will take over the traditional payments industry, Schwartz said companies that adopt new technologies like blockchain will thrive, and those that don’t will disappear.
“What will happen is the companies that will provide those high-speed, low-cost payments will get the business. And those that don’t, will have to adapt or die, just like in any technological revolution.”
According to Schwartz, three factors will place the blockchain on top: security, reliability and governance.
“When you ask your bank for your balance, your bank tells you what your balance is. And you have to trust them. And if they screw up, you have to go to the bank to get them to fix it. Blockchain systems don’t work that way. Blockchain systems allow every participant to verify, personally, every system rule.”
“It’s kind of a cheap shot, but the median blockchain has been more reliable this year than YouTube. I know – a cheap shot, right? YouTube had a two-hour outage a couple of days ago…
The last Bitcoin system outage was in 2013. It was due to a bug. They fixed the bug and haven’t had an outage in something like five years. The XRP ledger, the Ethereum ledger – these systems have never had outages. They’re very, very fundamentally reliable.”
“Blockchains are governed simply by having every participant enforce all the rules. So if you get a bunch of people together or a bunch of companies together, they can start a blockchain just by agreeing on a set of rules. And anyone who also agrees with those rules can use that blockchain. And those rules can include how you transfer funds and whatever the requirements of the systems are. And all that has to happen is if you don’t follow the rules, my system will ignore you because my system enforces the rules.”
You can check out the full debate here.
Highlights From Ripple CTO’s Debate at the Money 20/20 USA 2018 Conference
On Monday (22 October 2018), at this year’s Money 20/20 USA conference (held 21–24 October 2018 in Las Vegas, Nevada), David Schwartz, the Chief Technology Officer (CTO) at Ripple, took part in an “Oxford-style debate”with Ester Pigg, SVP of Product Strategy (FIS Payments), at FinTech solution provider FIS, where he argued “in favor of blockchain’s merits, citing the design of distributed ledger technology as superior to legacy architectures,” and she defended “the industry’s current approach, noting its scale, security, broad adoption and efficiency.”
These were the main elements of David’s argument:
- “New corporates like Amazon, Uber, Facebook… they have hundreds of people who work for them just integrating their payment systems. How are small companies going to compete? How are we going to have this explosion of global commerce?”
- “You need three things for global commerce to work. You need to move goods. Check! … We have a great international shipping and transport system. You need to move data. Check! We have the internet. But if you can’t move money, you are missing a very very critical piece, and what we have is a fragmented system.”
- “We are currently in the transition phase now, where we are putting bandages on top of a system that dates back to the dial-up era, and predates public key encryption, predates the internet.”
- “Banks have web interfaces, mobile interfaces, we have technology like ApplePay, we have GPI from Swift, we have companies like Transferwise that sort of paper over the problems with the underlying payment systems, but those problems are still there, and they are not going to be fixed unless we replace those systems.”
- “Band-Aids are not going to work in emerging markets. Band-Aids don’t work for small businesses. And Band-Aids don’t work for banks and payment companies that want the business of new corporates, and who doesn’t?”
- “I have three key reasons why blockchain is the right technology for building new payment systems.”
- “One of them is security. Blockchains are secure because every participant on the blockchain can enforce all system rules. When you ask your bank for your balance, your bank tells you what your balance is, and you have to trust them, and if they screw up, you have to go to the bank to get them to fix it. Blockchain systems don’t work that way. Blockchain systems allow every participant to verify personally every system rule.”
- “They are very very reliable… People will you ‘Centralized databases are a solved problem, [and that] we can get ”five 9s’ [i.e. 99.999%] of reliability’. Anyone here run a centralized database? Anyone here get five 9s of reliability? I sure don’t! We don’t. It’s not like we don’t know what we are doing, it’s not because we are not smart, it’s not because we don’t have enough money. It’s because these systems are complicated, and they have complicated failure modes. Blockchains are fundamentally very very simple, and they have simple failure modes… The last Bitcoin system outage was in 2013. It was due to a bug. Fixed the bug. Haven’t had an outage in something like five years. The XRP ledger, the Ethereum ledger, these systems have never had outages. They are fundamentally reliable, and that’s extremely important if you don’t have a single centralized party who can untangle a mess.”
- “And the last one is governance… Blockchains are governed simply by having every participant enforce all the rules. So, if you get a bunch of people together or a bunch of companies together, they can start a blockchain just by agreeing on a set of rules. And anyone who also agrees with those rules could use that blockchain. And those rules can include how you transfer funds, whatever the requirements of the system are, and all that has to happen is ‘if you don’t follow the rules, my system will ignore you because my system enforces the rules. They don’t require centralized operators. They don’t require any kind of consortium except to set the rules in the first place or to change rules, but they don’t have to run the system or run the rules as the system is running.”
- “So, what will the transition look like? It will look like what email did to postal mail. It will look like what digital music did to CDs. It’s not about how much of the current market you can capture. It’s about micro-payments… it’s about new internet business models… the developing world is going to skip these old-fashioned centralized business systems.”
- “What we need is a light interoperability protocol. We have that for the internet; it’s IP. We have that for blockchains and payments; it’s ILP. Blockchains are going to replace the world’s payment systems.”