Ripple engineer Neil Hartner has provided insight into the use of XRP, RippleNet and On-Demand Liquidity (ODL) in a recent exchange with an XRP community member on social media. The discussion shed light on the role of token in the Ripple ecosystem and its relationship with RippleNet and ODL.
The conversation started with the community member questioning the use of XRP in RippleNet, with Hartner explaining that while the technology does not directly use XRP, over half of the payments on the network will end up using the token via ODL. This led to a debate about the distinction between using XRP directly or indirectly on RippleNet.
Agreed. Provide the context and we are all good. Stating RippleNet doesn’t use XRP and omitting any context related to ODL just creates confusion.— Neil Hartner (@illneil) April 10, 2023
Asked about the relationship between RippleNet and XRP, Hartner agreed that RippleNet is a platform for payments and not settlement, whereas the token itself is primarily used for the latter. However, he emphasized that omitting the context related to ODL can create confusion and that RippleNet does use XRP indirectly.
XRP price and future of ODL
The conversation then turned to the impact of ODL on the price of XRP. The community member claimed that some people believed ODL would cause the price of XRP to increase dramatically, but Hartner clarified that the service is just a buy and sell transaction, which does not have a significant impact on the price of a token.
Finally, regarding the future of ODL, Hartner said that while centralized crypto exchanges might face more regulation in the U.S., the user growth of the service has shown that there is still a high demand for it outside of the U.S.