Crypto researcher Stern Drew has shared a detailed breakdown of Ripple’s European patent, highlighting its significance for the future of XRP and the global financial infrastructure.
Understanding Temporary Consensus Subnetworks
The patent outlines a concept known as Temporary Consensus Subnetworks, which provides the architecture for dramatically faster and more secure blockchain-based payment processing. This mechanism is intended to replace traditional financial systems, such as SWIFT, leveraging XRP as the core bridge asset.
Implications for Speed and Security
The patent offers an alternative approach, where only a smaller, temporary group of trusted validators approves a single transaction. This system reportedly enables payment finality within seconds, which is crucial for high-value transactions, especially in contexts such as central bank digital currencies.
The Role of XRP in Institutional Transactions
The research emphasizes that the new Ripple approaches target not only retail applications of XRP but also institutional-level transactions, where trust and speed are critical. XRP serves as a neutral bridge asset between different currencies, allowing security requirements to be customized based on transaction size.
Ripple's patent indicates a maturation of blockchain infrastructure towards targeted financial architecture, positioning XRP at the core of future financial settlement systems.
