InterLedger Protocol from Ripple Could Potentially Revolutionize the Global Payment System

Cryptocurrency

Despite remaining stagnant during the latest rise in the crypto market, XRP is steadily climbing up the ladder of popularity. In terms of gains, the cryptocurrency has managed to rise only 16% to $0.36 from its $0.30 monthly low level while a host of other large cryptocurrencies posted over 20% gains. However, a turnaround in XRP fortunes is looking very much evident as Ripple is going ahead with implementation of its InterLedger Protocol. In an announcement made during the 2019 InterLedger summit, Stronghold Inc. was tasked with the implementation of InterLedger Protocol. Stronghold Inc. is a service platform which is used by exchange networks for facilitating cross-border payments. This step is seen as a milestone towards the adoption of XRP in the crypto world.

InterLedger Protocol

InterLedger Protocol is special in a sense as it allows the interoperability of exchange between crypto and fiat currency. This will make the transactions faster and facilitates the wider adoption of cryptocurrency not only for XRP but for all other digital coins. Giving the demonstration of how the interoperability of the new system works, Kevin Davis who is a lead engineer at Kava Labs swapped Ethereum, XRP, and Bitcoin in a matter of seconds. Tweeting about his experience, Warren Paul Anderson, a fan of XRP said that the demonstration was magical in nature and completed in no time. Anderson was truly delighted and blown away by the speed of the transaction.

Efficiency and Interoperability

The launch of the new protocol will help the banks and financial institutions to carry out cross border transactions more efficiently, seamlessly, and in a cost-effective manner. On a broader perspective, this is going to help to stimulate the adoption of cryptocurrencies by addressing the challenge of interoperability with regard to fiat currency. In a specific comment regarding the development of the new protocol, Evan Schwartz who is an engineer and has co-inventing InterLedger said that he is expecting ILPv4 to be the latest version of the protocol which should last for a long time in future. On his Twitter handle, Evan Schwartz tweeted that the company is going to use ILPv4 for all kind of micropayments and the plug-in required for the use of Ethereum, XRP, and ERC20 should be good for work within a span of 1 to 2 weeks. The success potential of this new ledger system hinges on its ability to provide seamless interoperability between different cryptocurrencies and fiat currency. More seamless experience it will be able to provide to the user, higher will be the chances of its adoption throughout the financial sector. The fact that this ledger aims to build the market for all the cryptocurrencies rather than focusing on the on its own native digital coin makes this development even more important for the crypto world. Now how much success it will receive in the fast-changing crypto scenario, only time will tell.

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