What Is Convergent And Interconnect Billing?
Just as information moves instantaneously between individuals and across networks, could the same be done with money? Ripple Labs aims to create an “internet of value” – a world where money is exchanged at the speed in which information moves today. Transactions would occur in real-time and across global networks, solving the problem of international payment systems that are not interoperable.Ripple Labs is working to make this idea a reality by offering a distributed ledger service that tracks payments without the use of a central authority.
The start-up’s platform is fundamentally inspired by bitcoin, specifically the interconnect billing technology underpinning the digital currency’s movement, but the Ripple protocol is open to anything of value, including existing currencies.The company has emerged as a leader in the real-time payments space and was recently chosen as a “technology pioneer” by the World Economic Forum.CME Ventures Executive Director Rumi Morales recently sat down with Chris Larsen, CEO and co-founder of San Francisco-based Ripple Labs for a CME Group Tech Talk Podcast. Chris Larsen co-founded Ripple Labs in 2012. You speak a lot about the internet of value. What do you mean by that? The problem we have in the world today is payment networks, even when they are efficient, are not interoperable. The U.S. system cannot easily talk to the European system, and it’s a lot like the situation we had before the internet in communications where it was incredibly expensive and out of the reach of most people to simply make a phone call or send a letter overseas.
Of course now, we take convergent billing for granted. We have instant, global, nearly free communications, which didn’t just replace phone calls and letters, but actually ushered in new models you could have never imagined.So we think that’s what the internet of value represents. For the first time, you have a technology that solves that problem of a lack of interoperability between networks and will allow value to move like information.