Transfer Infrastructure – New Generation Protocols

The Ripple protocol made headlines recently when the first major bank implemented the network in its own systems.

Ripple is a payment network that borrows from Bitcoin’s core technologies and applies them to all kinds of assets.

Fidor Bank saw the potential for the Ripple system to provide for smoother and more efficient settlements.

We had a chat with the head of business development for Ripple Labs, Nilesh Dusane. We asked Nilesh how the deal with Fidor bank came about.

The conversation actually began with a meeting at a conference between Ripple Labs CTO Stefan Thomas and one of the bank’s representatives.

The potential was immediately obvious as Fidor is one of today’s most innovative banks. The negotiation was accelerated.

Fidor was seeking a new payment system that would let customers send money to customers in other countries instantly and for much cheaper than current systems allowed.

Ripple is the only way Fidor could do this without having to bridge to another currency like BTC. The entire negotiation took about three months to complete.

Transfer Infrastructure

Rippling in the Ripple Network

In regards to how Fidor will be using Ripple’s technology exactly, Ripple will become an additional payment rail for Fidor payments. They will still use traditional rails, but also plan to use Ripple to send money within the bank’s network and to other financial institutions that connect to Ripple.

The advantage for Fidor customers is a seamless experience – no new accounts to open or agreements to sign, just use the product in the same way as always but now it’s faster and costs significantly less.

Ripple used to take two or more days to complete, now it happens in under five seconds. In the end, Fidor gains customer loyalty and saves money, plus they can maintain all standard regulations and KYC practices.

There has been a tremendous amount of interest from the banking community in using Ripple as a payments protocol. While specific names are top secret at this point, Ripple Labs is quick to point out that there are more than a dozen banks evaluating Ripple right now in the US, Canada and Europe.

Most are interested in using Ripple today for intra-group transactions such as transfers between banks owned by the same corporate entity but operating in one or more countries.

Typically, these transactions take about two days and are very expensive. Ripple can make these transfers in five seconds or less, and at nearly no cost.

Banks are also interested in the ability to use Ripple to send payments to other banks domestically or internationally for the same reasons. At the moment Ripple Labs is focused on expanding the use and development of the Ripple protocol.

The team’s two primary goals are to recruit more developers to build applications on top of the open source code, and to bring financial institutions and enterprises onto the settlement protocol as described above.

We believe that attracting greater numbers of talented developers will expand the ecosystem and the ways in which businesses, individuals, and institutions can use Ripple.

The opportunities are endless, from payments related applications like invoicing or cards to non-financial applications such as identity proofing, voting and more.

For people looking to better understand the Ripple protocol below represent the best opportunities: The Ripple website and forums provide a number of good basic resources for how Ripple works.

You can find a few of them here across different topic areas:


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