Decoding Ripple's Patent: Transforming $XRP into the Backbone of Global Liquidity

Cryptocurrency researcher Stern Drew has shared a detailed analysis of Ripple's patent EP3054405A1 in Europe, viewing it as a technical advancement that helps XRP become an important factor in the future of global financial infrastructure. This patent outlines a concept called "Temporary Consensus Subnetwork", according to Stern Drew, providing an architecture for a significantly faster and safer blockchain-based payment processing. He believes that this mechanism has the potential to replace traditional financial systems, such as SWIFT and interbank networks, by leveraging XRP as the core bridge asset in these processes. Understanding Temporary Consensus Subnetwork According to Stern Drew, the core improvement presented in this patent is the Temporary Consensus Subnetwork (, a system that changes how consensus is achieved on the XRP Ledger. Traditionally, all transactions on the XRPL require consensus from the entire validator set.

Ripple's patent provides an alternative solution, in which only a smaller, temporary group of trusted validators is needed to approve a single transaction. In this model, the sender and receiver of the payment will choose the validators they trust. These selected validators form a concise subnet, solely tasked with validating that transaction. This subnet confirms transactions almost instantly. The results are transmitted to the wider XRPL validators to ensure transparency and record-keeping. Stern Drew emphasized that this is a significant structural change, addressing issues of scalability and latency while maintaining the decentralization of the network. Impact on Speed, Security and Financial Infrastructure Stern Drew emphasized that this patented method offers significant improvements in speed and efficiency compared to traditional financial systems. He compared it to the SWIFT system, which can take several days and often involves multiple intermediaries with high fees. By using trusted nodes chosen by participants in transactions, Ripple's system is said to allow payments to be completed in just a few seconds. He describes this capability as crucial for the future of high-value, real-time payment transactions, especially in contexts such as central bank digital currency )CBDC(, tokenized assets, and interbank payments. According to Stern Drew, Ripple is not merely conducting research or prototyping. He describes this patent as evidence that the company has been and is establishing the technological foundation for a blockchain-based financial system, with XRP integrated at the payment layer. He believes this move is aimed directly at organizations and governments looking for speed and reliability in cross-border financial activities. The Strategic Role of XRP and Use Cases of Organizations Researchers assert that the benefits of this system go far beyond using XRP for retail or speculative purposes. Instead, the Temporary Consensus Network model is optimized for institutional scale transactions, where trust and speed are key factors. Stern Drew pointed out that the role of XRP in this framework is to serve as a neutral bridge between different currencies or forms of encoded value. By allowing validators to be transformed for each transaction, Ripple's system enables a higher degree of customization without sacrificing the decentralized benefits of XRPL. He added that this flexibility could appeal to central banks, financial institutions, and real asset tokenization regulators, as it allows them to adjust security requirements based on the scale or risk level of the transaction. For example, smaller transactions may rely on a few trusted validators to increase speed, while larger transactions may involve more validators to enhance consensus strength. The Position of XRP in Global Financial Development Stern Drew concluded that Ripple's patent demonstrates the maturation of blockchain infrastructure from general-purpose use to targeted financial architecture. With the Temporary Consensus Network, Ripple introduced an efficient method to adjust both reliability and speed per transaction without the need to centralize the system. This model allows for scalability and customization, suitable for the demands of institutional finance. He summarized this innovation as a technical improvement, making XRP the core of future financial payment systems. According to Stern Drew, this is not a speculative proposal but a framework supported by patented architecture, affirming Ripple's long-term strategy to integrate XRP into the global financial system at the infrastructure level. $XRP {spot})XRPUSDT(