Monday, May 10, 2021

Ripple Clarifies Reason for Its Opposition to XRP Ledger Amendment; Launching New ODL Corridors

Ripple, the US-based cross border payment startup, has clarified the reason for opposing the XRP Ledger amendment that has received notable support from validators within the XRP community.

Also, Ripple has announced its intention to launch new On-Demand Liquidity (ODL) corridors and onboarding new customers in 2020.

Ripple’s Clarity about Its Opposition to XRP Ledger Amendment

A couple of days ago, the checks amendment attained the necessary 80% support threshold among validators. If checks remain above the threshold until 17th June 2020, it will get activated on the XRP Ledger.

If accomplished, the upgrade will enable senders to sign transactions and create virtual checks for a specific amount of destinations. The digital asset XRP meant to be transferred will not move until receivers are ready to cash their funds.

Additionally, if the checks fail as a result of potential sender issues such as insufficient balance, the funds will remain in the ledger to be cashed in the future.

Answering the question about the reason Ripple opposed the XRP Ledger amendment, David Schwartz, the chief technical officer (CTO) at the blockchain tech, stated that the potential costs of the amendment seem to be far more than its limited demand.

He said:

“Any change to a public ledger system has costs associated with it to everyone who uses that system. At an absolute minimum, they have to ensure the change doesn’t break any behavior that they’re relying on. So the bar for accepting a change should be pretty high.

We haven’t seen all that much demand for this feature. So we never were quite convinced the benefits exceeded that basic ‘cost of any change in behavior. But others could certainly disagree. If we opposed it for any significant reason, we’d certainly say so!”

Ripple On Track to Launch New ODL Corridors

According to a recent article published on Ripple’s official website, where Asheesh Birla, the SVP of Product explained how Ripple is evolving with the shifting global tide, the cross-border payment firm is on track to open new On-Demand Liquidity (ODL) corridors in 2020.

Asheesh Birla wrote:

“Ripple is on track to open new ODL corridors this year and we’re onboarding new customers and working with existing customers to ramp up ODL volume in important corridors including USD-MXN, USD-PHP, AUD-USD and PHP, and from EUR-USD.”

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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