Ripple recently patented its technology with a clear goal: to challenge SWIFT's supremacy in global financial payments.
Ripple has patented a revolutionary technology that could surpass SWIFT, the dominant system for international bank transfers.
The patent EP3054405A1 focuses on the creation of Temporary Consensus Subnets, a disruptive methodology for managing cross-border payment validation quickly, with adaptive consensus, and highlights XRP's ability to function as a neutral and highly efficient bridge asset.
This breakthrough seeks to optimize the current payment system, long plagued by slow and costly processes, by offering near-instant, secure, and personalized payments. Thus, this new approach represents a breakthrough that could reshape the international financial ecosystem, placing XRP in an advantageous position to lead the next generation of digital payment solutions.
BUY XRP ON BIT2METemporary Consensus Subnetworks Revolutionize International Payments
The central innovation of patent EP3054405A1 is the introduction of the Temporary Consensus SubnetsThis architecture dynamically groups validators into specific subnets that authorize each payment independently and quickly, without requiring the entire network to be involved, similar to a transient validation cluster.
This mechanism greatly reduces the latency that characterizes systems like SWIFT, where validation through multiple intermediaries generates significant delays. Furthermore, subnets allow transaction participants to select trusted validators for that particular transaction, improving adaptability while maintaining the decentralization and security inherent in blockchain technology. Ripple, however, doesn't stop there; alongside this advancement, it has filed 34 new patents that cover a wide range of details to make this possible.
Distributed consensus across these subnets optimizes scalability, facilitating massive transaction processing without congesting the main network. This method is ideal for high-value payments that require speed and flexibility in validation, and sets a precedent for modern financial systems that demand efficiency without compromising security.
Real-time settlements with adjustable security
The patent also includes a system for adjusting the security of each payment based on its value and associated risk, by varying the number of validators in each temporary subnet.
This way, small transactions can be processed quickly with a few validators, while large transactions involve larger groups to maximize security.
This enables real-time settlement, eliminating the delays typical of traditional banking systems and allowing different types of payments to be validated with scalable levels of confidence.
Ripple's innovation challenges traditional systems
Ripple's bid for this patent challenges SWIFT's traditional monopoly on international payments, a system that, despite its widespread adoption, suffers from inefficiencies such as slowness and high costs stemming from successive intermediaries.
XRP and its technology propose a personalized and decentralized consensus that overcomes these barriers. This could trigger a structural shift in the global financial economy, enabling cheaper, faster payments with levels of trust that can be adjusted by the customer or transaction.
XRP as a neutral and efficient bridge asset
XRP is not simply a cryptocurrency; it was specifically designed as a neutral bridge asset connecting different fiat currencies and financial systems. This market neutrality facilitates rapid conversions without the need to hold large reserves of foreign currencies, optimizing capital and reducing reliance on intermediaries.
Thanks to its technological architecture and the RippleNet network that supports it, XRP facilitates real-time payments and conversions with minimal fees. Renowned financial institutions around the world already use XRP to improve their international payment flows, achieving efficiency and significant cost reduction.
