NEWS

The Shift to Global Standards: USDS, InterLedger Protocol for IoV

In the early days, there were specific sources of information, the way goods were being shipped from one point to another. Additionally, communication languages available all over the world created communication barriers. Now, the world is changing, and everything is aligning to international standards; from shipping, information, language, and emerging technologies such as the distributed ledger technology.

The shift was captured by a Twitter user, XRP_Anderson:

The world is moving towards global standards: the shipping container for goods, the internet for information, English as the global bridge language (a Swede going on vacation to Greece speaks English), InterLedger protocol for IOV, and XRP [is equal to] global liquidity.”

Those last two points are the latest addition to how the world is shifting to global standardization.

InterLedger Protocol for IOV (Internet of Value)

The InterLedger protocol has welcomed another firm which is working to facilitate the global shift in standardization, Stronghold, a Fintech company with a special interest in blockchain technology. With the protocol, it’s possible to interact with multiple ledgers when sending payments across the globe.

The interaction is made possible by the use of a dollar backed digital coin, Stronghold USD.

According to Stronghold:

Just like the internet uses open protocols like TCP/IP to transmit packets of data using routers, InterLedger protocol (ILP) direct packets of money across independent payment networks via connectors…that facilitate cross-ledger and cross-currency transactions fulfillment…

Stronghold USD (USDS) is the first asset-backed US dollar enabled-connector on InterLedger.”

ILP allows those sending and receiving payment to interact without worrying about the currency conversion at the back-end.

The platform is available for institutional users who want to interact with USDS, Bitcoin (BTC), and or Ripple (XRP) among others while accessing liquidity as needed.

Because we created technology that moves dollars quickly and securely, we call ourselves ‘the on and off-ramp to the InterLedger network,’” Stronghold boasts.

The Unstoppable Internet of Value

By harmoniously interacting with different ledgers, the InterLedger protocol helps realize the Internet of Value (IoV). For the internet to have value in payments, it has to enable the movement of value with the same ease as moving information.

In their bid to interconnect the world using standard tools, Stronghold has an application programming interface (API). The ILP uses payment pointers, “a standardized ID for accounts eligible for payments” to ease sending and receiving funds. The pointers are already being utilized by a web monetization platform, Coil, to help content publishers to receive donations in USD in real time.

With their goal being to “put a digital wallet in every pocket,” joining ILP is a logical step.

What about XRP and Liquidity?

Ripple (XRP) is another blockchain project working towards providing a standardized way to send and receive payments across the globe. Additionally, Ripple provides liquidity to enhance transfers.

Ripple provides liquidity in three ways; through traditional bank-to-bank fiat relationships, third-party fiat relationships, and or using its digital asset, XRP. Also, banks and other financial firms can link multiple liquidity arraignments for optimization.

Dalmas Ngetich
About author

Loving Crypto, Open to Technology, Engineer, Trader
Sign up for our Newsletter