This post is going to blow your mind. Now, remember every post that we create has a source to go with it, we just don’t pull information out of our ass. We post the sources at the end of each post or throughout each post. For most of you who will not take the time to read this 5-minute post we created we will lay out the details below:
- ILP will connect the world
- ILP will use XRP
- ILP will connect central banks (ex Bank of England)
- ILP will connect 2 ledgers and everything will be settled in XRP
- Airbnb will be powered via the ILP utilizing XRP to make payments throughout the world
For those of you are have stuck around – let’s get started, shall we?
The ILP or the Inter Ledger Protocol is how Ripple is going to power the world. Interledger protocol is a protocol used for payments across payment networks. The protocol connects ledgers from two different banks, thereby removing intermediaries and central authorities from the system. It promises to reduce costs and the time required to process cross-border transactions. It is used by Ripple Labs to connect bank systems across borders in its products.
Let’s start with the most overlooked page of this wonderful InterLedger Protocol PDF. Page 2, bottom left-hand corner, what do we see? The XRP symbol…perhaps they forgot to remove this? Who knows. But we do know one thing. The ILP puts all digital assets on a level playing field. The ILP uses the fastest, cheapest and most secure digital asset. Can you guess what that happens to be? XRP.
Back in November of 2017 Andiran Hope-Baili put out a PDF going over the Interledger, in this document he went over a few key things which we will review:
- Payment method Airbnb accepts
- How the ILP works
- How SWIFT is a failure
Airbnb has a serious problem, they currently do not have a way to send payments cross-border without getting destroyed by 3rd parties such as Western Union or SWIFT.
This is a serious problem that not just Airbnb faces but any company who is trying to send money cross-border. The fees for these 3rd party systems are just outrageous….yes we are talking companies like SWIFT, Western Union, Moneygram etc. Airbnb went to payout a user of there platform $29 and the end user only received $9. This is ridiculous especially when XRP exist and money can be moved anywhere in the world for fractions of a penny.
That’s the first major problem with payment companies today. The second problem is Paypal. Paypal is great for sending money all over the world. but just because you can send money to someone doesn’t mean that they can withdraw it. What good is sending money to a friend in another country if they can not withdraw it because Paypal doesn’t support their currency? This is where XRP steps in again! Do you see the problem here? Companies like Airbnb are going to lose business if they can not handle payments across the globe.
Let’s look at how the ILP works:
Let’s review the adoption strategy and see if any of these names look familiar to you. ILP will be used for Micropayments such as Codius. Does codius ring a bell? ILP will utilize digital assets…..XRP. The ILP with use Blockchain technology – Hyperledger Quilt which has plenty of ties to XRP as well. How about Mobile Money – Mojaloop. Isnt Ripple powering Mojaloop? Damn, right they are! How about Banks? Umm you guess it Ripple again! And the icing on the cake CENTRAL BANKS – Bank of England. We all know about the relationship between Ripple and the Bank of England. So after reading all this and connecting some dots we can see that Ripple will be solving a major issue that is faced today….payments cross-border for the fraction of a penny.