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
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.”
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. 1/2
— David Schwartz (@JoelKatz) June 13, 2020
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.