Ripple is advancing solutions to enhance the utility and adoption of XRP by introducing a patent that outlines a liquidity system for seamless cross-medium transactions.
Patent Overview
Patent US2021192501A1 describes a network computing system designed to support on-demand liquidity (ODL) for conducting transactions across different mediums. This system includes exchanges, institutions, and a messaging layer to coordinate the movement of funds.
Volatility Solution
The core innovation in the patent is the client-side digital currency pool or 'slippage balance' positioned at both the originating and destination exchanges. This serves as a buffer against volatility during the asset conversion process. If the price of the intermediary asset shifts unfavorably during a transaction, the system draws from this pool to compensate for the difference, ensuring the recipient receives the expected value.
Reliability of Ripple's Network
Ripple's network is becoming one of the most widely used modern systems for digital cross-border payments, actively expanding its XRP utilization. Its reliability and capacity for predictable settlements make XRP competitive in the cross-border payment market.
The development of the new Ripple patent highlights the company's commitment to enhancing the usability of XRP for international payments, especially amid the volatility of the cryptocurrency market.
