David Schwartz, the Chief Cryptographer at Ripple demonstrated xRapid in front of a live audience at Consensus earlier this week. The recently released video of the demo shows the video of the transaction occurring.
xRapid is one of Ripple’s cross-border payment solution. It utilizes the XRP Ledger to process cross-border transactions to ensure settlement with a receipt in close to 2 to 3 minutes.
xRapid has been in the spotlight over the last month, as its pilot made headlines with the participating companies being ‘delighted’ to its speed and efficiency. It charges low transaction fees and show savings of 40%-70% while settling in 2 to 3 minutes.
The xRapid product functions in three stages. Primarily, two financial institutions must connect directly to digital asset stages. Then, the currency from the originating institution is liquidated into XRP, which is then exchanged into the destination currency on the other end. After this occurs, the transaction is then sent out on the local rails of the destination country.
The transaction is also tracked from end-to-end. This results in a much cheaper and faster cross-border payment. It is also possible to attach memos on transactions, which makes it easier for financial institutions to manage.
The transaction conducted by David Schwartz at the demo involved the sending of 100 USD into Mexican Pesos, which was worth around 1975 Mexican Pesos. This roughly translates to about 149.8 XRP. The transaction took place about 2 minutes. It was saved in the XRP Ledger, as can be seen from the image below.
The transaction consumed 0.06 XRP to process on the XRP Ledger, which roughly translates to about 4 cents in USD. Current FX transactions are charged at around $2-4 for payments of this size by existing payments solution providers. These transactions usually take around 2-3 days to settle, due to the fragmented nature of the systems through which they occur.
This is part of Ripple’s vision for the Internet of Value, where value moves through this world as quickly as information does today.
Rob Licker, a Twitter user says:
“The folks @ Ripple labs would heartily disagree that XRP is a security, from what they’ve said XRP is open source,decentralized and would still be in use , even if Ripple the company ceased to exist.”
Another Twitter user says:
“I believe a very interesting statistic would be how much xRapid saves over xCurrent”
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