Ripple has drawn attention from the XRP community by introducing patent US2021192501A1, which outlines a system aimed at improving digital assets, especially regarding XRP.
Overview of Ripple Patent
The patent describes a network computing system focused on On-Demand Liquidity (ODL). It connects financial institutions and exchanges, relying on a real-time messaging layer to manage transaction flow. The most notable part of the system is its design aimed at preventing value loss during transfers.
Client Pool Mechanism
A key innovation is the client-side liquidity pool, known as the 'slippage balance.' This pool safeguards cross-border transactions using XRP as the bridge asset, positioned at both the sending and receiving ends of the transaction route.
According to Crypto Eri, the slippage solution in the design ensures that exchange rates agreed upon before transfer remain intact. This means recipients will always receive the full value, regardless of XRP price changes during processing.
Benefits for Banks and Payment Providers
The system automatically taps into the slippage balance whenever the intermediary asset loses value during transfer. This guarantees transaction accuracy and reduces the risk that has discouraged institutional use of cryptocurrencies in cross-border settlements.
Ripple’s system combines decentralized ledger connections, institutional messaging, and exchange integrations. This mix ensures transparency and provides full traceability of asset movement, all while defending against market swings.
Ripple’s patent introduces a strategic tool to make XRP transfers slippage-proof. This development could bolster banks' confidence in adopting XRP for global transactions.
