xRapid, xCurrent, xVia to Merge?
XRP Convergence – With our powers combined…
XRP Convergence? The question among XRP veterans is why most of Ripple’s partners are using its xCurrent product and not its xRapid product which utilises XRP itself.
The more xRapid is used , more is burned and the value of XRP will rise exponentially and fast.
Only a handful of financial institutions are currently using xRapid with most running viability tests of the tech.
This is also down to the product still being in beta and not having shifted to full production yet.
xCurrent relies on the system of banking that Ripple aims to make obsolete.
Currently over 110 banks use xCurrent to give a more consistent and frictionless experience on top of the symbiant banking system.
The Promise of XRP
After you have been a HODLR for a while you start to ask serious questions about your investments.
Its only natural and its vital, I remember when I suddenly realised Ripple and XRP were not the same thing.
I would see all the headlines telling me of new partnerships weekly and Ripple basically killing it out there.
Yet the price wouldn’t change…
The current system used by financial institutions locks up capital in overseas accounts known as nostro accounts to smooth cross-border transactions.
The system allows the receiver to obtain the money from the pool offered by the nostro accounts.
This is too inefficient in its current form because it forces institutions to maintain multiple accounts worldwide to provide said liquidity.
Add to all of this the fact that the existing network for international transfers has its own major setbacks.
Known as the Society for Worldwide Inter-bank Financial Telecommunication or SWIFT is fatally flawed. In its history it has been the initial start point for many hacking attempts.
XRP Convergence – A Time for Change
xCurrent directly surpasses the SWIFT system, is faster and boasts a higher security. As reported by the financial institutions who currentrly utilize it.
The funds required for cross-border payments will be sourced from xRapid using XRP as a bridge currency.
Initial results have also shown that banks get a whopping 40-70% savings when using xRapid for international payments.
Bundling all of these products into one big package would certainly boost the value of XRP but would it really work in practice?
XRP Convergence – Hearsay and Chinese Whispers?
Jim Chauncey-Kelly, Director of Talent Acquisition at Ripple seems to provide clarity on the matter.
On 9th August he spoke to Interview Now (a text message interviewing tool that helps the recruitment industry) In the statement, he said:
“Hi All – for clarity — we have 3 products – xCurrent (in production) and 2 more on the way – xVia & xRapid. They will be on a ‘convergence’ release soon. There isn’t a software actually called ‘convergence’.”
Tweet by David Schwartz CTO of Ripple, regarding the partnership of Ripple with 3 exchanges spoke about using xVia. Possibly the XRP Convergence that Kelly hinted at.
“xVia can initiate a payment that uses xRapid to settle with XRP. xVia is for payment initiation, like a browser for the internet of value. xRapid converts currencies on demand through XRP liquidity. That pipeline can settle payments initiated elsewhere.”
xVia is Ripple’s third offering. It acts as a standard interface that can be used to make payments in both xCurrent and xRapid simultaneously.
We will have to wait and see what the xrp convergence product will be. If there is one in the first place of course.
FURTHER READING –
take a look at our Guide to Buying XRP
FURTHER READING –
See XRP-3O – the Ripple Robot give you his predictions!
FURTHER READING –
Find out the difference between XRP and Ripple!