R3 had sued ripple for trying to terminate a contract via email. R3 alleges that Brad Garlinghouse, CEO of Ripple, tried to terminate the options contract by emailing David Rutter, R3’s CEO. R3 argues that Ripple cannot terminate the contract unilaterally and asks the court to rule that it is entitled to the rights outlined in the 2016 contract.
Ripple Labs has counter sued R3 in San Francisco over the accusations made by them. Ripple alleges that R3 failed to deliver on a partnership they agreed upon. The partnership would give Ripple an access to R3’s consortium of financial institutions. In exchange for that, R3 would get 15% of Ripple’s revenue generated through partnerships with banks associated with R3.
Ripple also claimed that major institutions like JP Morgan and Goldman Sachs exited the R3 network, though R3 touted their names while making the deal. Ripple’s representatives state that R3 wants to benefit from the 4000% increase in the value or Ripple’s currency, XRP, though they are not entitled to the benefits based on the agreement.
Ripple’s currency, XRP was estimated at around $250 million at the beginning of the year. Now, it is worth more than $8 billion. Ripple’s CEO, Brad Garlinghouse explains that he got attracted to the platform as he thought the adoption of the blockchain would be faster in the enterprise and bank space. He claims that the XRP can solve the payments problems related to Wire Transfers. He explains that they are selling banks a financial process to enable them to settle fund transfers within seconds. The low cost and higher visibility will make the process frictionless.
He explains the many people in the cryptocurrency space follow an anti-bank, anti-government approach. Ripple aims to facilitate the banks with the blockchain technology as they are not expected to go away anytime soon. Brad explained how Ripple could help in empowering the Internet of Value by solving the payment issues across the globe. He says that bank liquidity is measured in trillions of dollars. As XRP ledger aims to bring down the cost per transaction, the total savings can be enormous for the banks.
While comparing XRP with Bitcoin, he says Bitcoin takes about four hours to complete a transaction, whereas XRP can complete one in 3.7 seconds. Ripple XRP currency can handle approximately 1,500 transactions per second while Bitcoin can handle only three or four. The reason behind the Bitcoin’s limited performance is that it uses the proof of work framework. XRP, however, uses a consensus of validators for completing the transactions.
The developing world is expected to adopt the blockchain technology faster than the developed countries where the financial infrastructure is well-developed and mature. Emerging economies can leapfrog straight to the present-day technology.
Blockchain technology allows two parties to complete a transaction faster than ever before in the history. Ripple can deliver at the scale of Visa with their technology today. In future, Ripple’s technology will also continue to evolve with time. Garlinghouse also talked about their interest in the micro transactions taking place between devices and would like to be involved with Internet of Things in the future.
In the upcoming future, solutions to the real problems will be provided with the blockchain technology, and true value will be created. It will be the reason why some will succeed and others won’t.