CBDCs, Blockchain Ledger & Machine Learning Crypto

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In this fall 2021 edition of The Ripple Drop, we explore machine learning’s potential on RippleNet, the exciting developer community that’s building on the XRP Ledger (XRPL) and how Central Bank Digital Currencies work and why they can promote financial inclusion.

Machine Learning Bolsters Liquidity Speed and Availability on RippleNet

Ripple’s SVP of Engineering, Devraj Varadhan, gives an update on RippleNet’s artificial intelligence capabilities and what drives his team’s rigorous approach to innovate. 

If there’s one common need across RippleNet customers, it’s reliable, readily available liquidity. Devraj discusses the complex and nuanced environment created by constant global customer demand and the ways that he and his team are using machine learning to make liquidity available anytime, anywhere, to anyone in order to deliver a seamless user experience.

Machine learning addresses this multifaceted problem, bringing Ripple another step closer to providing the perfect customer experience on RippleNet. Successful implementation of the technology will further enhance the payment network’s already powerful benefits, including greater transaction speed, lower cost and always-on liquidity availability.

While machine learning is not fully operational on RippleNet yet, Devraj sees it as a key facet of the engineering team’s work in coming months, in 2022 and beyond. 

“We view launching as a starting line rather than a finish line. So we incrementally roll out. We learn from it. In my experience, I’ve never seen any one single launch knock the problem off.” —Devraj Varadhan, SVP of Engineering, Ripple.

Developers Expand Use Cases on the XRP Ledger

Matt Hamilton, Principal Developer Advocate at RippleX, discusses the developer community’s current projects on the XRP Ledger, the future of use cases on the distributed ledger, and how Ripple contributes to the developer community to continue building and innovating blockchain technology. 

There are a number of reasons developers choose to build on the XRP Ledger, but Matt sees speed and the consensus protocol at the top of the list of ledger technology priorities, providing developers the opportunity to push the limit for use cases. As a developer himself, it’s what persuaded him to start building on the public blockchain network. 

For instance, innovative blockchain technology companies are building out projects on the XRP Ledger such as a system to tokenize stocks, structures to store exam credentials and even a Bitcoin wallet that runs on the XRP Ledger.

Looking ahead, the growth rate of blockchain ledgers doesn’t appear to be slowing down anytime soon. People are starting to use the XRP Ledger for crypto assets like NFTs, which represent an entirely new creator economy. Matt shares the ways that Ripple is working with the developer community to make the XRPL a superior and sustainable blockchain for NFTs. 

Matt also mentions the XRPL Grants Program as a key initiative supporting developer communities with resources to bring their projects to life on the blockchain ledger. 

CBDCs and Blockchain Technology Improving the Efficiency and Movement of Money

James Wallis, VP of RippleX for Central Bank Engagement and Central Bank Digital Currencies, explains why governments around the world are exploring CBDCs, and how they work within distributed ledger technology.

The potential for greater financial inclusion is one of the strongest motivators to implement CBDCs, persuading governments and central banks alike to explore the digital asset. Roughly 50 million people globally are underbanked, meaning that they have little or no access to financial services. CBDCs can facilitate efficient distribution of money, reduce transaction costs and democratize access. For example, Ripple is partnering with the Royal Monetary Authority of Bhutan — the country’s central bank — to accelerate its pace of digitization and achieve the goal of increasing financial inclusion to 85% of the population by 2023 while also extending its commitment to sustainability. 

However, James believes that in order to achieve widespread adoption of CBDCs, financial institutions and blockchain companies must work toward providing reliable, consistent interoperability — taking into account the following factors: 

  • Compatibility with existing payment schemes across countries
  • Efficiency of sending cross-border payments 
  • Interaction between CBDCs and other forms of digital currency

Addressing these factors will help the blockchain community see greater CBDC adoption and move us closer to the financial equity that comes with it. 

Want to hear more? Watch the latest episode of The Ripple Drop for full details on these projects. 

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