A few days ago, IBM technology giant announced plans to prepare a cross-border payment project dubbed "Blockchain World Wire (BWW)." The solution aims to revolutionize the finance sector by introducing a seamless protocol that can reduce costs and transactions almost immediately in real time. Oh, wait. Where have we heard before? Quite right. This sounds very similar to the blockchain-based solutions that Ripple presented to us a long time ago, xRapid and xCurrent.
To create the ambitious project, IBM worked with Stellar Lumens and agreed to use its blockchain protocol "The Stellar protocol," the channel in which transactions will be enabled. between these two was known from the beginning of the year, but it was not until now that the project was announced.
IBM launched Blockchain World Wire, "which can simultaneously clarify and resolve cross-border payments problems , almost in real time. "BWW is based on #Stellar and could be a competitor of #xRapid .Stellar allows for greater decentralization, but #XRP is ahead of many miles in What will prevail?
– Weiss Ratings (@WeissRatings) 5 September 2018
In light of the objectives of the initiative, Blockchain World Wire not only implies a great competence for SWIFT, the global (and archaic) cross-border payment solution that is being used at the moment, is also a major obstacle for Ripple's solutions to continue their path to mass adoption, let's see how it goes.
How does Blockchain World Wire work?
Blockchain World Wire will eliminate the intermediary institutions normally required for transactions by introducing the innovative figure of a stable currency.We recall that a stable currency is a virtual currency that has a stable value or , in other words, a value that does not depend on supply and market demand.
Regarding this, the company's Web site published a message that said,
"The sending of money across borders requires today a series of intermediaries both for compensation and for the # Settlement, each of which adds time and costs to the process. "
In this way, with the addition of a stable currency in the process, IBM will work together to clarify and adjust the payments for purposes, and this will happen in near real time.
The process that BWW will implement can be divided into three phases. The first is the agreement that the entities that make transactions will commit themselves to using a stable currency as a transactional bridge, this stable currency can be a digital currency of the central bank or any of the virtual currencies of the cryptographic sector.
the digital asset used can simplify the transaction and serve as instructions that the financial institution involved can follow using its payment system by integrating it to the BWW through the use of a group of APIs.
The second step would imply the correct connection of the payment system of the financial institution to Blockchain World Wire, and the exchange or conversion of the first fiat currency into a digital business at bank A. So it would seem step number three, which would be the transmission of the digital currency to another bank called institution B. In this phase, the digital currency will be simultaneously converted into the second fiat currency, and this would be the process in progress.
At the end of the transaction, details of the transaction are recorded on an immutable blockchain and, in this way, the transaction is canceled. In relation to this, Blockchain's head of services, Jesse Lund, said:
"What we really want is to allow all types of digital transactional networks to regulate their digital fiat currency transactions on the same blockchain networks. "  The project will be launched at the next SIBOS event to be held in Sydney next month. It is worth mentioning that SWIFT is organizing SIBOS.
The Blockchain World Wire undoubtedly represents a great competition for both SWIFT and Ripple solutions. It is an innovative payment system that has everything to become the next mass payment network adopted, and for this, we must add the enormous approval that represents IBM and the stellar network.
However, when it comes to recognition, Ripple has more time with its solutions launched, and is currently adopted by several institutions such as Banco de Santander, Mastercard, American Express, Western Union and others … While BWW is only under development.
We all have to wait to see the final results, but surely Ripple needs to jump out and go out with a strategy if he does not want to lose the battle. Stay tuned.
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