Ripple Labs, Inc also requires the software smart contracts Xvia and Xcurrent to be used with Xrapid in conjunction to logistically complete a transfer of Cross Border Payments.
Xcurrent is the on ramp for the local, fiat currency coming into RippleNet. The next transfer is into the Xrapid pool of liquidity or holding in escrow. This holding phase is written or accounted for on the ILP. (InterLedger Protocol.) This accounting assures no mishandling of values occurs as the escrowed holdings are then flushed with Xrapid to the Xcurrent software platform.
Once the values have reached Xcurrent, an opportunity is available to exchange into the recipient party's local Fiat or Digital Currency of choice. The ILP reflects the completion of the Exchange of a Digital Asset from one entity to another in under 5 seconds.
This process has met the regulatory requirements of multiple governments and the banking industry. This transaction set is legal and solves a global payment problem to transact country's currencies in a real-time duration of 5 seconds.
The place holder or Token of Value used in the Liquidity Pool is a digital currency asset called XRP. It is an important bridge in the RippleNet financial system.
3 Types of Use are characteristic to the XRP Digital Currency:
- P2P, P2B, or B2B basic send & receive transactions of any amount of value for the sending fee cost of less than a Penny. This settles in under 5 seconds.
- Multi-Sig Transactions give higher security or a check/balance feature to a P2P, P2B, or B2B transfer of value.
- Escrow-Held Transactions are the smart contracts which carry out the stipulations of the agreement when the conditions are met as directed.
The use case of the XRP Digital Coin brings to life the solution to the problems of greed, emotion, distance, and time. These complications interfere with the exchange of value. XRP the currency is a solution to real inefficiencies and shortcomings in our current global banking systems.
