ILP – All the money – XRP to xxxx$?

all the money
now let’s get serious
welcome everyone let’s get started
first off this is no financial advice I
have no financial interests
I have no sponsored with links on my videos
and I don’t want no donation
this is just for education
today’s video will be
about ILP
and at the end of the video
I will resolve what the intro was about
fully understand the big picture
from my last video I will cover three topics
I will do a short recap
on the vision of ripple Internet of value
I will talk about ILP what it is how it works
and where XRP plays its role
recap on the internet of value
there is no one ledger to rule them all
that’s why we need to create a network of payment networks
this network of payment networks will be connected via
ILP similar as IP today creates the
but what is ILP the inter ledger protocol
let me give you an example
you all know this and this and
this and the similar one and yet another
one they all conform to a protocol
so with the Swiss I can create a connection
works they talk to each other a
different one doesn’t work I cannot get
them to connect
same with this one doesn’t connect
that’s the European one looks rather
similar yet the poles are too thick
I cannot get them to talk that’s basically
a protocol
l if you want to suck out
electricity of a power system within a
country you need the appropriate plug
in order to be able to do so
example for a protocol
which is an unwritten protocol is the arrangement of
the pedals in a car
we have the clutch to the left
the brake in the middle and the
gas to the right
imagine you borrow a car from a friend
and there it’s the other
way around
gas clutch brake
you would be totally confused to drive his car
so now you basically know what a protocol is but
how can the different payment networks
connect to each other through ILP
well I show it again this is quasi an adapter it has different inputs so I can use a
European connector and can plug it in
done I can use an American plug
plug it in connected
the same way this power adapter works an ILP connector works
he can receive from
either side communication or money
in one currency he can convert it
output on the other side the appropriate currency
let’s take a look at that
the important thing to know about the connector
is the fact that he can set
the exchange rate between an incoming
and an outgoing asset
and now we come to the important role of XRP
in the traditional payment system Network if you so wanna say
each currency had to be connected
with each currency
in that example from
the ripple vision paper you see six
currencies they have made eight pictures
for eight bank so the picture doesn’t
align with the figures they say
imagine that each of these banks uses a
different currency then the figure is correct
so let’s say we have eight
different currencies
that would create
basically a network of 28 currency pairs
US dollar with Korean Won with
Japanes Yen with Brazilian Real with
Euro with Mexican Peso and two more
now when we use XRP all those banks have
just to have a connection with XRP
which reduces in the example with 8
different currencies the connections to 8
that’s quite a reduction on the
connections and quite a drastic
improvement on efficiency in the overall
as you now understand what ILP is
how it works and the role of the
connectors you can now also understand
this image I have presented in my last
video “the big picture”
and now it should dawn on you
let’s come to the resolution
of my intro of this video
some people heard me say this before but I’ll
throw it out to the audience what is
inter ledgers total addressable market
all the money
all the money
nobody wanted to nobody want to feed it
yeah it’s all the money because what
we’re really talking about with this
idea of the Internet of value is
creating a single global payment network
that connects literally everyone


Add a Comment

Your email address will not be published. Required fields are marked *