Ripple Working to Set Up Cross Border Payments

On the heels of the recent drop in ripple’s value, they are working with Saudi Arabia to set up a cross border payment system with end to end tracking. Dilip Rao, the head of infrastructure innovation said

“Central banks around the world are leaning into block chain technology in recognition of how it can transform cross border payments, resulting in lower barriers to trade and commerce for both corporates and consumers”.

The Saudi central bank will be the first to use the ripple network. If this succeeds, the value of ripple will be enhance due to increased utility. Although, the CEO said that most cryptos will go to zero, they are trying hard to keep ripple alive.

Ripple Story

BitMEX issued a scathing critique of ripple. They conclude that ripple does not share any characteristics with bitcoin or ethereum from a technical viewpoint. They cite that ripple was conceived to enable peer to peer network where parties could directly lend funds among themselves. They feel the ‘trust’ involved between the parties is unreliable and this puts into doubt the viability as a long term currency.

The main issue is that the primary parties are a few large banks and the system is more or less a centralized platform. They point out that ripple’s distribution of reserves to founding members and employees, they are not critical of the distribution but the question way it was done. Adding to this the rumors of internal disputes among the staff. See this article from Forbes.

https://www.forbes.com/sites/laurashin/2018/01/02/meet-the-crypto-billionaires-getting-rich-from-ripples-xrp/#7a9946cf3289

BitMEX upon examining the way ripple works has difficulty in understanding ripple’s inner working or how it has any of the convergent properties necessary for consensus systems. See attached photo, courtesy of thenextweb.com.

Lastly, BitMEX discovered that ripple appears to be missing 32,570 blocks from the start of the ledger and nodes are not able to obtain this data.

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