According to Messari, the XRP Ledger (XRPL), backed by Ripple, is aiming to provide a digital payment infrastructure not only for individuals but also for central banks and other financial institutions. This comes despite the external pressure being applied by U.S. regulatory authorities.
The XRPL uses a unique Proof-of-Association (PoA) consensus algorithm, where each node sets a list of trusted nodes to rely on for consensus. Validators participate in reaching consensus and voting on improvement proposals, while stock nodes receive, relay, and process transactions. The nodes rely on their UNL to finalize the state, with new blocks created every 3-5 seconds through consensus and validation stages that require 80% thresholds.
One of the key features of XRPL is its Issued Currencies (IOUs), which allow for functionality with multiple assets. The Authorized Trust Lines feature enables issuers to choose which wallets can interact with their tokens, and a central limit order book supports low-liquidity IOUs.
Despite the ongoing scrutiny and regulatory pressure, the XRPL’s potential to provide digital payment infrastructure for traditional financial entities remains a significant advantage. However, it remains to be seen how the regulatory landscape will develop and impact the future of the XRPL and other digital payment infrastructures.
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This article was republished from azcoinnews.com