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Ripple released Multi-Hop & RippleNet: take Advantage of all the partner banks XRP?

Ripple released Multi-Hop & RippleNet: take Advantage of all the partner banks XRP?

Home News Ripple published Multi-Hop & RippleNet: take Advantage of all the partner banks XRP?

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Marcus Misiak –
01.10.2018

Ripples annual Swell conference will be held from today for two days. Before Ripple has released a new, potentially ground-breaking function for banks and financial institutions of the RippleNets. The new feature is called “Multi-Hop” and perhaps, too, with a big Change to the website in connection in the context of the individual Ripple software solutions, xCurrent, xVia and xRapid are no longer listed individually.

“Multi-Hop” is to allow companies to use the Blockchain from Ripple, to settle payments on behalf of other companies. The Siam Commercial Bank (SCB) will be the first Bank to use this technology, such as Ripple said in a press release. In this it is said (freely translated):

With Multi-Hop financial institutions can establish a direct connection to SCB, to handle the entire Region, and pay out, without having to switch to several currencies and to charge high fees. The result is a seamless payment experience, in and out of the South-East Asian Nations (ASEAN) Region. For smaller financial institutions, which were not able to make payments in ASEAN, is a Multi-democratize-Hop access to these countries, and payments, facilitate, regardless of the payment amount or as to the liquidity pool of your financial institution.

What does this mean for Ripple and XRP?

The above statement from the press release, unfortunately, is very abstract and is, by far, the scope of the new function, could these have Ripples XRP-Token. A look at the website of Ripple reveals that this has been re-designed. Instead of the three software solutions, xCurrent, xVia and xRapid only a single payment solution for banks and other remittance service provider with the name “RippleNet can be found on the website”.

In various XRP forums will be discussed, therefore, is currently hot whether RippleNet could be the famous “convergence”, which in recent months has been spoken and possibly all three of the Ripple software solutions merge into a single one. RippleNet is described on the new website as a solution to On-Demand to obtain liquidity and at the same time ensuring that payments on both sides of a transaction can be sent in local currency, and receive.

The following graph on the website shows how the new RippleNet works. The focus of XRP!, which according to the “old” solution xRapid as a bridge currency is used to banks to provide liquidity.

Specifically to Multi-Hop, the Chief Technology Officer (CTO) of Ripple, David Schwartz, commented a few days ago, in a series of Tweets. In this Schwartz Multi-Hop describes as a way for xCurrent-customers to act as Hubs for incoming and outgoing payments to and from the regional banks, with whom you have a good Fiat settlement can be agreed. Other banks could use, according to Schwartz, too xRapid in the partner banks of the Hubs and to be able to pay off.

In another Tweet, David Schwartz, said that some banks might not be willing to be a xRapid-customer, and for various reasons, such as, for example, regulatory reasons or because of international payments, for you are not so important. Multi-Hop means that these banks can use other xRapid instances, your payments to be settled and yet, many of the advantages of xRapid.

The statements indicate that XRP to play in the RippleNet is a very important and Central function. However, it is not yet clear how the RippleNet fits in with the three software solutions, xCurrent, xVia and xRapid or whether the new RippleNet replaced them.

Perhaps it is already a response to the Ripple Swell conference. This officially starts at 20:00 German time, the Keynote by Bill Clinton. Ripples CEO, Brad garlinghouse will occur two hours later.

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