Ripple Unleashing Real-World Potential

Cyprx team
Jun 3, 2023
2 min read

The world of digital assets and cryptocurrencies has been surrounded by excitement, speculation, and promises of revolution. However, as we delve deeper into the insights shared by industry leaders like Jorn Lambert, Chief Digital Officer at Mastercard, and Brooks Entwistle, Senior Vice President of Customer Success at Ripple, we begin to understand that the path to realizing the full potential of digital assets is more of an evolution rather than an overnight revolution.

Major payment providers are increasingly recognizing the potential of digital assets for payments. Lambert acknowledges this slow and steady evolution, emphasizing that current proof-of-work systems are not efficient for financial markets. While proof-of-concept tests have been conducted, no one has successfully implemented a proof-of-stake system at the scale required for widespread crypto payments. This realization highlights that digital assets' utility for payments is still a hypothesis, awaiting robust implementation.

Trading Dominance vs. Utility: Lambert astutely points out that, at present, crypto is predominantly used for speculative trading, comprising around 95% of all crypto activity. However, he emphasizes the importance of focusing on utility and the use case that will unlock the true value of cryptocurrencies. While trading may bring short-term gains, it is not the disruptive use case that will revolutionize the financial industry. The emphasis on utility signals that there is untapped potential waiting to be harnessed.

Evolution, Not Revolution: In response to characterizing the ongoing transformation, Lambert intriguingly states that the financial industry does not typically thrive through revolutions; instead, it evolves. This implies that digital assets are not intended to replace traditional finance but rather enhance it. By integrating digital assets into existing systems, we can unlock new efficiencies, transparency, and accessibility while preserving the stability and trust that traditional finance provides.

The Journey Takes Time: Brooks Entwistle's insights from Ripple reinforce the notion that this digital transformation is a long process. Ripple, established a decade ago, focused on finding real-world use cases for digital assets and recognized the potential in cross-border payments. Entwistle highlights that progress takes time. This sentiment signifies that we are still on a journey of exploration, improvement, and adoption, with cross-border payments being a tangible opportunity for disruption.

The evolution of digital assets is gradually reshaping our financial infrastructure. While we witness the gradual integration of cryptocurrencies into mainstream payment systems, it is crucial to understand that this process takes time, patience, and the identification of real-world use cases. As Jorn Lambert and Brooks Entwistle assert, speculative trading is not the ultimate utility; it is the tangible value-added use cases that will drive the transformative power of digital assets. As we embark on this journey, early investors and those who patiently navigate this evolving landscape may seize life-changing opportunities. Remember, every industry revolution in history has required time and persistence, and this fourth industrial revolution will be no different.