- Ripple CTO David Schwartz explained on Twitter that On-Demand Liquidity (ODL) can work without the XRP infrastructure.
- According to Schwartz, an individual analysis is carried out for each customer to determine which Ripple payment solution is most suitable
Ripple offers various payment solutions for companies, payment service providers and financial institutions, primarily to enable them to process cross-border transfers at favourable conditions. Online transfers with a traditional bank often entail disproportionately high costs and long waiting times. With On-Demand Liquidity (ODL), transactions can be carried out within a few seconds. According to Ripple CTO David Schwartz, under certain conditions transactions can be processed without the use of XRP.
RippleNet and ODL offer comprehensive solutions
The founder and chief developer of utility-scan.com asked Schwartz on Twitter whether ODL can work without the corresponding infrastructure of XRP. The main question was whether the technology could be used by companies without buying and selling XRP:
Hey David Schwartz regarding the ODL implementation: is a DT necessarily attached to a single customer? Are DTs borrowed from a pool and can they change customers? Can ODL work in certain cases without buying/selling XRP, for example, if the customer has a large reserve of XRP
Schwartz explains that users will be able to choose from a variety of options depending on the infrastructure already in place. Normally Ripple works with a Fiat-to-Fiat gateway, but the payment system also works without XRP:
We chose to do fiat-to-fiat first for a few reasons, but the biggest one is that it can work with no XRP infrastructure at all, so could be deployed fastest. Then we could use XRP where it could provide the most impact with a ready supply of customers and payments to tap into.
Ripple’s CTO further describes that an individual analysis is carried out for each customer to find out which infrastructure can be used and installed most cost effectively. The Twitter user “AG” aptly summarized that Ripple customers can join the RippleNet in the first step, which also works without a corresponding XRP infrastructure.
Normally, costs and time can already be saved by using the RippleNet. If the conditions for using ODL are met, the company can also switch to ODL and also benefit from the advantages. Recently, the Monetary Authority of Saudi Arabia announced that the partnership with Ripple could save $400 billion annually.
Cloud solution facilitates deployment and use
At the end of May, Ripple launched a cloud solution that allows customers to get started 5 weeks faster than with a previous on-site solution. By integrating a Ripple Payment Object (RPO), the RippleNet cloud enables companies to send and receive payments using a standardized procedure.
As Crypto News Flash reported last week, Brazilian bank Banco Rendimento is the first bank in the world to successfully migrate to the RippleNet cloud. The RippleNet Cloud enables a faster setup of Ripple’s payment solutions, especially in times of the corona virus.