Ripple chief cryptographer David Schwartz (David Schwartz) argues that in the near future, banks are unlikely to use the blockchain for cross-border transfers because of the low scalability and privacy issues.
In an interview with Reuters, Schwartz stressed that the banks see the potential of the blockchain as a factor of reducing the cost of transactions and the catalyst for their processing; however, technology needs to be improved scalability and security.
Ripple itself States that “cross-registry” permanent Protocol xCurrent provides instant settlement, potentially making the product significantly more attractive than the standard payment solutions. But Schwartz emphasized that xCurrent is a distributed registry, as members of this network do not have equal access to a shared outdoor register, unlike Ethereum networks or Hyperledger. Schwartz continued:
“We hear from many of our customers, which is extremely important to respect the privacy of their transaction, to handle thousands of operations per second and to support various currencies and assets.”
Marcus tricher (Marcus Treacher), first Vice-President of Department for work with clients Ripple, created a separate project that offers banks a more traditional approach to payment systems on the basis of the block chain. The initiative was rejected, and the representatives of the banks said that “can the world be put on the blockchain”.
According to Reuters, some banks are already using xCurrent for cross-border payments with a view to transition to the full DLT.
In may, Ripple has published a report on trial testing of its products by banks; the participants noted the reduced payment costs by 40-70%, and transaction processing time to approximately two minutes instead of two to three days.
Senior management position Ripple Schwartz does not share: in an interview with CNBC, the CEO of a startup brad Garlinghouse expressed confidence that before the end of this year all major banks will use XRP.
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