Ripple has introduced new features in its Ripple Consensus Ledger (RCL) and Interledger Protocol (ILP) to enhance transaction throughput for internati
Ripple has introduced new features in its Ripple Consensus Ledger (RCL) and Interledger Protocol (ILP) to enhance transaction throughput for international payments, among others.
After these improvements, Ripple is reportedly having the same transaction throughput as Visa, the world`s largest payments network.
“The feature updates consist of Escrow and Payment Channels. Escrow allows Ripple Consensus Ledger (RCL) to communicate with the Interledger Protocol (ILP) to lock up payments until a determined time. It completes this task securely without having to trust intermediaries and no single institution is in charge of holding the funds, which is a major benefit to our customers.”, said a representative of Ripple, while speaking to cryptocoinnews.com.
Ripple has two new features Escrow and Payment Channels that are said to increase scalability and performance.
Escrow can hold funds for a certain occasion or until a service has been performed. It can perform the task without the need to thrust intermediaries, meaning that no central authority holds the funds. Traditionally, banks accomplish this using a vault. Escrow is the first readily available option for digital assets, as cryptocoinnews.com explained.
Apart from this, Ripple developed a payment channel for XRP, RCL`s native digital asset. The channel allows a transaction throughput that increases to tens of thousands per second.
“Our Payment Channel is specifically designed for XRP and allows transaction throughput to increase to tens of thousands of transactions per second. XRP saw nearly 70K transactions with an average time of 3.7 seconds.”, commented a Ripple representative.
“XRP saw nearly 70K transactions with an average time of 3.7 seconds. Compare that to BTC’s avg transaction time of two hours.”, as Brad Garlinghouse, the CEO of Ripple, tweeted earlier (full link available at: https://twitter.com/bgarlinghouse/status/847878168010661888 ).
According to cryptocoinnews.com, XRP payment channels may be a faster and cheaper option for cross-border payments.
The publication expressed an opinion that XRP represents the best liquidity option for emerging markets that have old banking infrastructures. Thus, Ripple can also expand its role in global payments, added the online media.
The future will show whether this payment solution will be adopted around the world.