Yesterday, the second-largest cryptocurrency in the world, XRP, achieved major adoption goals when it was picked by the blockchain solutions firm, r3 as the first settlement mechanism for Corda Settler. Post the news, r3 posted a YouTube video on its channel, explaining the working behind the Settler. Here, r3 also wrote:
“Corda Settler is an open-source CorDapp to help Corda users settle transactions. Corda Settler provides a bridge to any payment rail that can return a cryptographic proof of settlement. This includes any ‘traditional’ domestic and cross border payment systems able to return such a proof, as well as blockchain and cryptocurrency-based rails.”
The video began with the explanation of what the Settler does, stating that there are two legs of the transaction wherein one leg creates an obligation to complete the other leg. Furthermore, Corda Settler allows uses to complete the second leg on any system, whether it is an on-blockchain rail, a cryptocurrency system or a traditional system.
Subsequently, r3 told the users that in case of the second leg not being on Corda, it will provide two integration points – one for the users to initiate payments and the other for the confirmation of the payment status.
The explanation then took a turn to cite an example of the mentioned process. Here, it stated:
“A network of participants using Corda Settler – Company A and Company B are the counterparties. They are using a notary service on Corda and they both have access to nodes in other payment systems.”
Next, the video demonstrated the mechanism keeping XRP as the mode of payment. As per the demo, company B has an obligation to pay $100 to company A. As a beneficiary, company A can choose the currency in which it would like to receive the payment.