RippleNet, the network of financial institutions and payment providers using the Ripple ledger, has hit a milestone of 300 institutional customers from 45 different countries. On top of that, On-Demand Liquidity (ODL), which uses XRP to eradicate pre-funding capital requirements, has seen 7x growth from the end of Q1 2019 to the start of Q4, November 7, 2019.
XRP Usage Increases
The criticisms of Ripple revolve around two core factors: the constant open market dumping of escrow tokens and the perceived lack of use cases for XRP.
According to Ripple’s latest announcement, XRP is being used as a bridge currency for cross border transactions through the ODL mechanism. This means financial institutions transacting with a counterparty across the globe can seamlessly transfer value from one currency to another by using XRP as the bridge. Notable customers using ODL include Viamericas, FlashFX, and Ripple-owned MoneyGram.
RippleNet transactions have supposedly grown 10x year-on-year, and the company continues to add more customers to their network.
It’s difficult to deny that Ripple has institutional clout. They have helped financial institutions in emerging markets set up seamless cross border systems to significantly improve transactional efficiency. The main benefit of using the Ripple ledger is the cost reduction that comes into the picture.
For once, the company even paid attention to the constant calls to stop suppressing price through open market escrow dumps. They managed to reduce escrow sales, and this resulted in strong price appreciation over the last month.
Bridging Centralized to Decentralized
This may anger a lot of Ripple proponents, but the ledger mechanism is clearly centralized. Whether Ripple has allowed more third parties to become validators is a secondary factor, as the fact that not just anyone can become a validator is a testament to its lack of decentralization.
However, perceiving this as a negative may not be the right way of looking at this. Ripple can be seen as the bridge between the centralized and decentralized world, getting the financial institutions with power – who are loathed by cypherpunks – on board with crypto and blockchain.
Hopefully, Ripple does stick to their word and open up validation to the public.