Cryptocurrencies were not originally conceived to be market instruments to be traded in the global financial markets. They were originally conceived as solutions to existing problems within particular ecosystems. Within the global financial sector, there exists an ecosystem which is concerned with cross-border payments and remittances.
These have traditionally been handled at the level of commercial banks and third-party money transfer companies. However, this system of global remittances and payments has been riddled with specific challenges. It is these challenges that have led to the conceptualization of a cryptocurrency known as Ripple (XRP).
In an October 2 blog post, Ripple Labs announced the integration of RippleNet into Banco Santander’s mobile application for cross-border payments OnePayFX, effectively bringing Ripple‘s services to over 140 million of its customers.
Japanese financial giant SBI Holdings plans on launching a mobile payment app that will use Ripple’s distributed ledger tech, the company’s CEO announced in a September 12 tweet.
The chief technology officer at Ripple, David Schwartz, came up with a concept that is eerily similar to the blockchain. While Satoshi Nakamoto is often considered the mind behind blockchain, Schwartz came up with the concept way before blockchain even came into being.
A patent was filed on August 25, 1988, by Schwartz that included a “multilevel distributed computer system” that would, at least in theory at that time, run on “personal computers”. The main goal was to amass individual computing power of multiple devices in order to achieve demanding targeted tasks. Schwartz was granted the patent three years later, however, it never panned out to its full potential.