Ripple CTO Explains Trust Relationships in XRP Ledger Network

Schwartz used a simple analogy to explain the core idea of trust relationships: ‘Imagine two entities having trust in each other. Maybe one owes money, or they extend credit to each other regularly and settle it weekly. It doesn’t matter. What matters is that they can send funds across any platform.’ 💡 According to Schwartz, in theory, any means for both parties to receive and send money could be considered a payment network, enabling the use of XRPL and ILP to facilitate transactions.