The Ripple Consensus Ledger is taking a new step in regard to their usage of XRP. Modern technology has brought new changes as in regards to forms of payment, but there are issues involved that require addressing. Brad Garlinghouse, CEO of Ripple explored this in his article today, “Ripple to Place 55 Billion XRP in Escrow to Ensure Certainty Into Total XRP Supply.”
First of all, what exactly is XRP? It is an asset that is spreading in its repute, the native token of the Ripple Consensus Ledger has been making new all-time highs. XRP is taking the world by storm in terms of online financial transactions, quickly becoming the best digital means of payment. It can be used in all situations, is fast, and it is an easily moved asset. Different countries are finding it a valuable means of executing their business dealings across borders.
Ripple, an open payment network, has been using XRP and promoting its value. They have been distributing it to market its benefits, as well as to attain a good record for themselves. Their campaign has been working, and the reputation of XRP has grown.
However, there has been rumors and uncertainty about the trustworthiness of Ripple and whether they might sell all of their XRP. This is illogical due to the fact that it would hurt Ripple in the long run, yet the concerns persist. Ripple has decided to take action in regard to what is being said of them.
Even though the feature has been rumored for weeks, Mr. Garlinghouse made it official today in his announcement stating Ripple will be using an escrow facility, which is a safe means of securing funds without the use of banks or other institutions. Ripple is planning to place 55 billion XRP in 55 different contracts. Each contract holds one billion XRP. Escrow will lock any usage of the XRP until the party being paid either fulfill certain expectations, or a determined time period has elapsed. In this case, one contract will open each month, giving Ripple one billion XRP to use. Any XRP left over after the month will go to the back of the line of escrow to be cycled through again.
In this way, Ripple is demonstrating that it is a serious company. They are showing their reliability and are building trust with their customers. Those concerned about Ripple can rest assured that the funds will not be used up.
Ripple is making great advancements in regards to XRP. Their use of escrow will help to advance them in the public eye as a safe, dependable source.
[perfectpullquote align=”full” cite=”Mike Belshe, Co-founder & CEO of Bitgo” link=”” color=”” class=”” size=””]We partnered with Ripple because of their strength bringing financial institutions together. Ripple’s lockup of its 55 billion XRP with a cryptographic supply schedule is a clear signal that they are serious about building and maintaining a long-term, healthy ecosystem for XRP based applications.[/perfectpullquote]