XRapid is likely the most important product coming from the Ripple company. Much of the cause for the enormous interest surrounding Ripple is centered on xRapid’s eventual integration into the financial framework of several important institutions which have recently announced their partnership with the blockchain startup company.
Even more importantly, the xRapid system could eventually lead to the institutional adoption of a variety of different cryptocurrency-based payment platforms, which would have a massively positive influence on the cryptocurrency trading markets.
But so far, xRapid has been in its first round of official beta testing. Several companies have been working with Ripple on the development and integration of xRapid, which uses the Ripple currency (XRP) as an intermediate bridge in order to add liquidity to financial transactions.
According to Ripple’s Chief Technical Officer David Schwartz spoke out on the issue in a recent interview, saying that the xRapid system has shown savings of around 40% to 70%, when compared to the typical foreign exchange rates paid by major financial institutions.
xRapid Technical Details
Schwartz also fielded a variety of questions in a recent Q&A regarding the release of the official xRapid platform for development and implementation.
In particular, he responded to questions regarding the internal logic used to source liquidity. Though he stated that it would be unlikely for any institution to build the complex infrastructure needed to constantly source payments from a variety of different sources, he was firm in his belief that a strategy of emphasizing the stream of payments from the most cost-effective sources is an effective way to mitigate costs and inefficiency.
The executive did also outline, however, that larger payments create problems on the current system, and that occasionally a payment will not be made in full using their working model. To fix this problem, he stated that researchers are working hard to find a way to remedy higher-level problems without losing functionality and efficiency in the original system.
xRapid Long-Term Development and Release
For those who have consistently followed the xRapid saga, it is clear that Ripple is slow to follow-though on predictions and dates for finishing their products. The lasting promise to pull xRapid out of the beta phase this year, however has remained relatively steadfast over the past few months. Schwartz again mentioned this likelihood, expounding that Ripple hopes to release xRapid from its beta constraints before 2018 is over.
Its release is an incredibly anticipated event for many within the cryptocurrency community. Its release is likely to lead to a stark increase to trade volume for XRP, the coin being used to facilitate transactions in the complex xRapid liquidity network. Though it is still unclear how this might affect the price of the currency, predictions are generally positive, noting the use of the cryptocurrency in the parent system and the complex network of institutional backers as reasons that the coin may move up the ranks.
But for now, xRapid still remains in its beta and development phase as the community of investors eagerly awaits its release to institutional hands.