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There is something like a blockchain called XRPL. It is currently used to make cross border payments cheaper and faster for corridors where the traditional way
by noxer 7y ago
There is something like a blockchain called XRPL. It is currently used to make cross border payments cheaper and faster for corridors where the traditional way (nostro/vostro accounts) is rather expensive mostly due to low liquidity between the 2 assets and high counter party risk or the foreign currency. For example USD to MXN. Lots or people send money to this way. AFAIK only a few millions a week are transferred this way by now but doubling every few month. Probably still in the single digit percentage of all the money send to Mexico but due to covid19 we all know that doubling is a freaking fast growth rate so this could soon make up a significant portion for that corridor and obviously there are other popular but not efficient corridors. Apparently it's up to 40% cheaper and if it's used more the liquidity will grow which may make it even cheaper.
I would like to point out that any blockchain like thing with some kind of coin/token with value could be used for this. Like in theory this could be done with Bitcoin it's just very very slow and due to the rather high transaction fees its probably not really interesting.
After years of being interested in blockchain tech and hundred of hours research this is the only real world use case that is deployed, used and most importantly generally makes sense, that I know of.
There are a bunch of other projects like Brave that are technically deployed and working but IMO do not solve a problem just recreate the existing problem with a fancy token.
- noxer 7y agoLittle update: Ripple the company that builds on the XRPL, recently released new numbers. They say that the volume in dollar that used the XRPL for cross border payments, has increased by 294% in the last quarter. % is hard math so for thous who don't know, that means nearly tripled in 3 month. Obviously it can't grow that fast for long but still impressive and a clear sing that it actually solves a real problem.
- SpelingBeeChamp 7y agoI wonder if a significant amount of that is drug money. I have long wondered whether the core 'value' of cryptocurrency is that it facilitates illegal commerce.