Is a real-time payment protocol, a shared public database with a built-in distributed currency exchange operating as the world's universal translator for money
The Bank of England recently released its blueprint concerning synchronisation capabilities to its future real-time gross settlement system (RTGS). This would enable payments in RTGS to be executed simultaneously with a movement of another asset. One potential usage of this capability could be cross-border payments, where movements in the sterling RTGS system could be synchronised with movements in another currency.
Thus, the Bank chose Ripple in order to test whether blockchain technology could enable this “Global RTGS” capability.
— Ripple (@Ripple) 10 июля 2017 г.
Distributed database that is used to maintain a continuously growing list of records, called blocks
Now the results of the proof of concept (PoC) have been unveiled.
According to the Bank, the PoC specifically looked at how Ripple’s solution could support the synchronisation of cash movements made using two simulated RTGS systems utilizing the open-source Interledger Protocol.
the Bank of England’s PoC with Ripple is a watershed moment. We applaud them for being one of the first central banks worldwide to look at how blockchain technology can power instant international payments.
CEO of Ripple
The Bank says that “the PoC was a useful exercise to develop the Bank’s understanding of synchronisation and possible technical solutions.” In other words, Ripple’s solution showed promise in enabling RTGS systems which seamlessly support interoperability globally.