Sunday, April 18, 2021

David Schwartz: Ripple’s ODL Can Work without XRP Infrastructure

David Schwartz, the Chief Technical Officer (CTO) at the US-based cross-border payment firm Ripple, has stated that the firm’s On-Demand Liquidity (ODL) is capable of working without XRP infrastructure.

A couple of hours ago, Mourad Toumi, the Dev and founder at utility-scan.com, asked David Schwartz about the ODL implementation.

In the tweet, he inquired of the possibility for Ripple’s On-Demand Liquidity (ODL) to work without buying or selling the digital token XRP.

“Hey David Schwartz regarding the ODL implementation: is a DT necessarily attached to a single customer? Are DTs borrowed from a pool and can they change customers? Can ODL work in certain cases without buying/selling XRP, for example, if the customer has a large reserve of XRP?” Mourad Toumi inquired.

Ripple CTO Responds

Responding to Mourad Toumi’s inquiry, David Schwartz, the CTO at Ripple said exchanges have always been there to bind a DT to a customer.

David Schwartz wrote:

“I haven’t heard of an exchange doing anything other than binding a DT to a customer, though non-exchanges sometimes bind them to transactions and could reuse them.”

Schwartz further explained that “ODL can work with a piece cut out. One-piece would be cut out if the sender had XRP already. One-piece would be cut out if the recipient will accept XRP. If both apply, it’s just an XRP payment.”

Conclusively, the Ripple CTO stated that the blockchain payment firm chose to initiate fiat-to-fiat because ODL can work without XRP infrastructure at all.

“We chose to do fiat-to-fiat first for a few reasons, but the biggest one is that it can work with no XRP infrastructure at all, so could be deployed fastest. Then we could use XRP where it could provide the most impact with a ready supply of customers and payments to tap into,” David Schwartz said.

Tobi Loba
Tobi-Loba is a creative and an award-winning writer with over 5 million readers from all over the world. She has B.A in English and Literature from a reputable University and currently studying for her M.A in the same field. She recently became a contributor at Herald Sheets in order to satisfy her thirst in reporting crypto and blockchain occurrences, the interest she built over the years.

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