Skip to main content

XRP - A AUTOBRIDGING CURRENCY!

''One of the XRP Ledger's most powerful features is the native ability to use XRP as a bridge currency on a decentralized exchange, whether for trades or for cross-currency payments'' - David Schwartz, CTO Ripple.

A bridge currency provides a convenient means of sourcing for liquidity in other form of currency fiat or digital, and support the link for different DLTs interoperability. The ability of the XRP ledger to send value to any XRP ledger address, non XRP ledger addresses and banks without the need of a gateway or external liquidity provider makes the XRP a convenient bridge currency, and the only one in this category currently.

 The more advanced auto bridging feature how ever, deepens the level of liquidity for the XRP ledger by providing access to decentralised exchanges ''by  merging order books of two issued currencies with XRP order books to create synthetic combined order books'' - (ripple).

Example of Autobridging;

autobridging matches USD:XRP and XRP:EUR orders to augment USD:EUR order books.

- Ripple

Auto bridging adds to the  efficiency of newly created order books on the XRP network. ''The new autobridging feature improves offer placement in a similar fashion to pathfinding: when consuming existing offers, a newly placed offer will have the liquidity available in not only the direct order book (source to destination currency) but also in the corresponding books in which XRP is the destination and source respectively.
This expands the Ripple protocol’s capabilities and brings improved market depth for heavily-used asset pairs and improved liquidity for less-heavily-used asset pairs'' - Nikolaos D. Bougalis

Practical application of xrp as a bridge currency;



So far, the only known existent bridging currency is the xrp and it is well positioned to transform the space of digital payment and internet of value.
Prince X

Comments

Popular posts from this blog

Ripple (XRP) vs Stellar Lumens (XLM)

Considerations when deciding between XRP and Stellar Lumens With strong financial backing and a long list of partners,  Ripple  has attracted plenty of attention not only in the cryptosphere but also across mainstream media. But any analysis of Ripple inevitably draws comparisons with  Stellar Lumens (XLM) , another crypto giant focused on offering fast, reliable and affordable global payments. There are plenty of similarities between Stellar and Ripple, but also a few key differences. Read on to find out how these two cryptocurrencies stack up against one another and decide which project is best placed for success. Disclaimer:  This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. XRP vs XLM: The breakdown XRP (XRP) XRP Stellar Lumens (XLM) Stellar Lumen Description XRP is designed to offer ...

Ripple in Partnership With Three different Crypto Exchanges

A new report has emerged according to Cointelegraph stating Ripple has entered into partnership with three exchanges in three different countries ; US, Mexico and the Philippines in their first wave of taking xrp liquidity a step further.  The report mentioned Bittrex, Bitso and the Coins.Ph in the respective countries as the three exchanges that were included in the ripple cross border payment and remittance product range.  Ripple through these partnerships aims to build a healthy eco system of digital assets exchange as this will allow ripple xrp payment solution to move between the US dollar, Mexican pesos and the Philippine pesos currencies respectively in real time. According to Ripple the operational principle; “A financial institution (FI) that has an account with Bittrex would initiate a payment in U.S. dollars via xRapid, which instantly converts into XRP on Bittrex. The payment amount in XRP is settled over the XRP Ledger, then Bitso, through its Mexican...