The new PayID system is open source and is now available to everyone. PayID allows users to receive payments from cryptocurrency wallets, banks, and other platforms.
Ripple announced the launch of the new PayID system, which allows users to receive payments from different platforms using domain names in the style of e-mails.
This new system is already available and it is open source, so any person or company can adapt and build on it. Ripple is already integrating PayID to its RippleNet service to increase the interoperability of international transactions.
The Open Payments Coalition, which has more than 40 global partners, including companies and non-profit organizations, launched the system. Payment processor Bitpay, Mexican exchange Bitso, and wallet providers Bitgo and Blockchain.com are among the members that made the initiative possible.
Regarding the details of the system, the official blog of Ripple explains that the intention of launching PayID was to provide users with the equivalent of payments for an e-mail address. The idea behind this initiative was that the user would have a distinctive identification that could work for any payment service provider.
In this sense, Ethen Beard, Ripple executive, explained that PayID has a design similar to the Internet’s domain name system (DNS). He also said that common sense points to being in favor of a universal payment identification system. He added that the technology of e-mails and text messages (SMS) does not restrict the user to a single company, so payments should not be different.
According to Beard, PayID allows organic growth where no company can control or establish the terms to join. This solution is people-based, which replaces complex account numbers with simple names that are easy to understand, remember, and even write. PayID works on any payment network or currency, be it fiat or digital.
Domain Names rather than Wallet Addresses
Ripple is offering a new system that bears similarity to others driven in the cryptocurrency community and might be a solution to the stated complexity of these means of payment. J.P. Thieriot, Uphold CEO, considers that the space of federated names that PayID is creating is potentially a huge step forward for the future of payments.
Cryptocurrency domain services allow users to put a public name on a wallet address. In this way, when a user wishes to receive a certain cryptocurrency, he must only give the registered name instead of one of the commonly used alphanumeric addresses. This simplifies the process, making it more comfortable and faster.
Among the first to offer a service to register domain names for wallet addresses was Namecoin. Its service allows naming .bit addresses, such as “name.bit”. Ethereum Name Service (ENS) permanently offers .eth domains, while RSK Labs allows the registration of .rsk domains on a Bitcoin sidechain through the so-called RSK Name Service (RNS).
The new PayID service that Ripple powers could go where the previous ones have not gone. This would drive the adoption of payments with cryptocurrencies.
By Alexander Salazar