Chief technology officer of Ripple’s David Schwartz participated in a debate during the conference, Money 20/20 USA. The moderator of the debate is Tony Hayes asked him and his opponent, Vice-President of strategy and products at the FIS Payments Esther Pigg, to answer the question: can the blockchain change the current payment system?
Schwartz’s argument in favor of this judgment was two-way. First, he explained what’s wrong with today’s global payment systems. They were created before the Internet — era mail and periodicals, and therefore today can’t meet the needs of the market.
– We have many years of creating workarounds to this problem. Apple Pay, SWIFT GPI, Internet interfaces and mobile interfaces of the Bank — they all have short-term effects of said Swartz, talking about the industry.
But these workarounds do not resolve the underlying problem with the infrastructure that supports global payment system: it just won’t be able to work in the future. Schwartz gave examples of companies such as Uber and Amazon, which were the payment companies. The proliferation of APIs needed to perform payments to partners and customers, becomes a “nightmare”. And, in emerging markets, businesses and consumers are sometimes left without opportunities to meet their payment needs.
Schwartz explained that it is very difficult to stop technological progress when technology significantly improves the user experience or does solve an important problem. And this is exactly what the blockchain is doing for the sphere of cross-border payments. And still not know how he can help in other areas.
So, why the blockchain is the ideal solution? Schwartz presented three compelling reasons: safety, reliability and management.
In conclusion of his introductory remarks, Schwartz talked about how the transition to the technology of the blockchain.
– Look at what the revolution has made e-mail Inbox. See what has made digital music from CDs. The same can be said about the developing world, of moving directly to mobile wallets said Swartz.
Refutation Esther Pigg to the arguments Svarta touched on several key points, among them was uncertainty in the regulation, the scalability of the block chain and interoperability.
Schwartz acknowledged that scalability is the area in which the blockchain is still needed to develop. But for some technologies based on the blockchain, XRP like Ledger, it’s not a big problem. The XRP Ledger already scales up to 1,500 transactions per second.
Answering the question about compatibility, he said, putting that blackany already have Protocol compatibility, known as Interledger. Interledger similar to the way IP works on the Internet. It allows you to connect all bacchanalia Legere, regardless of what digital asset exchange.
Speaking about the problems of regulation, Schwartz agreed that, to ensure consumer protection requires more regulation of digital assets and technology of the blockchain. Regulatory bodies of Japan and Abu Dhabi are Prime examples of world leaders who provide protection for consumers using digital assets, but also hinder the emergence of innovations. In addition, he specifically pointed out as examples that Pigg cited in my argument that digital assets are used for the illegal practices that are very different from a more positive use of digital assets, such as cross-border payments, which help companies like Ripple.
Pigg also noted during the meeting that the industry should continue to examine how the blockchain can solve the problems with slow and unreliable payments. Therefore, although it recognizes that the blockchain will be able to substitute existing payment systems, it is agreed that it can play an important role in this.
After the debate, a poll showed that half of those present at the debate were of the same opinion, and before them — the rest of the audience is split 50/50, with regards to the question of whether the blockchain to replace the system of payments or not. It looks like it will remain very important even after the end of the debate.
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Message Money20/20: the Debate David Shwarze and Esther Pigg appeared first on Cryptocurrency Ripple (XRP): news, course, the forecast value.