Ripple's XRP patent securely encrypts the entire SWIFT financial system
In a groundbreaking development, Ripple, the global leader in blockchain-based solutions for payments, has introduced a patented technology designed to redefine the international financial ecosystem. The new technology, known as Temporal Consensus Subnets, offers a disruptive methodology for managing cross-border payment validation.
The subnet mechanism allows transaction participants to select reliable validators for each operation, maintaining decentralization and security. This approach ensures that different types of payments can be validated with scalable levels of trust, catering to various needs with efficiency and speed.
Ripple's patent, EP3054405A1, highlights XRP's ability to function as a neutral and highly efficient bridge asset in this new system. XRP, designed as a neutral bridge asset, facilitates quick conversions between different fiat currencies and financial systems, enabling real-time settlement and eliminating the typical delays of the traditional banking system.
The technological architecture and the RippleNet network enable real-time payments and conversions with minimal fees. This innovation has attracted recognition from financial institutions worldwide, with major banks and payment providers like Santander and SBI Holdings leveraging RippleNet for faster transactions and cost savings. These institutions report significantly faster settlement times (seconds instead of days) and reduced transactional costs, achieving improved liquidity management and operational efficiency.
The distributed consensus through these subnets optimizes scalability, facilitating massive transaction handling without congesting the main network. Temporal Consensus Subnets dynamically group validators into specific subnets for quick and independent payment authorization. This method is ideal for high-value payments that require speed and flexibility in validation.
The patent further suggests a system for adjusting the security of each payment based on its associated value and risk, by varying the number of validators in each temporal subnet. This approach significantly reduces latency compared to systems like SWIFT, improving the speed of international payments.
Ripple's patent poses a challenge to the SWIFT monopoly on international payments, offering a potential structural change in the global financial economy. With 34 additional patents supporting the implementation of this new technology, Ripple is poised to reshape the way the world conducts cross-border payments.
This new approach proposes nearly instantaneous, secure, and personalized payments, potentially reconfiguring the international financial ecosystem. XRP's market neutrality optimizes capital and reduces dependence on intermediaries, making it an attractive choice for businesses and institutions seeking efficient and cost-effective solutions for international transactions.
