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Jot7684

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  1. @Frans "To clarify this: what you're asking is that since Moneygram has to do the exact same thing, send USD to MXN Peso, why bother at all ? If that a fair representation of what you're asking ? I just noticed I should add @Jot7684 here, since he started this thread..." That's a big part of my question, yes. I will have to spend some time reviewing all the ideas and suggested content. It's clear to me now that I actually don't understand much of the traditional rail system, so I think I'll look more into that too. Thank you very much all for the different perspectives! @KarmaCoverage, that's a really good visual representation. Makes it really clear! @Dogowner5, a power function is a really elegant mathematical way to state the potential connectivity of the network. I personally think it will be a modified power function with an impressive growth curve, but not near the theoretical limit. I would guess that each corridor will have a different flow rate. Some may be open but practically do very little business in corridors that don't interest them. For instance, I can't think that a theoretical corridor in South Africa would have much interest in a Finnish endpoint. But then again, there may unheard of corridors that simply explode. As another example, I could see the Indian corridor opening up dramatically to a lot of countries in the world where traditional rails aren't well situated. Anyway, I've got a lot of reading and learning to do with all the responses. Thanks!
  2. @ WrathofKahneman Thank you kindly for the AMA link. It covered a lot of questions (and prompted a few more). @ karstnDE Nice Coil post! I compared it against the AMA to help me understand some of Nicholas's answers. @ xerxesramesepolybius Would you mind directing me to the 3 articles you found analyzing the fiat->crypto->fiat remittance issues? So here's my updated understanding of the network. There's 3 visible components on ODL: the exchanges, the market makers and the transfer companies. Exchanges and market makers are separate entities. The exchanges provide the platform like highways with on/off ramps. The market makers supply liquidity (like truckers moving supplies on the highway). Transfer companies use this network to send value from one point in the world to another point. So that explains why there aren't sister exchanges (except for Binance Worldwide and Binance US). Since they don't manage liquidity, they don't have a direct incentive to setup a second site in another country. Nicholas Steiger mentioned a few important things: 1) Rebalancing of fiat happens outside of Ripplenet. So it would be something like converting excess USD to depleted MXN via a traditional USD/MXN rail. Page 6 of the XRPChat AMA. 2) External market makers provide backup liquidity which is theoretically unlimited. Page 1 of the AMA. I sure would like to know more about this. 3) Exchanges do not rebalance XRP. That's the job of market makers. Page 7 of the AMA 4) He re-summarizes all the points in a post on page 8. I can't help but be very grateful for him taking the time to answer all those questions. According to him, the ODL network can easily rebalance XRP. It's as simple as sending XRP through the ledger for the market makers who have an incentive to work at both ends of a fiat/XRP corridor. It's however a challenge for market makers to rebalance fiat reserves on corridors with unequal (more or less one-way flows) like USD->XRP->MXN. They have to default to traditional rails. This seems like a problem to me. If the ODL network promises better fees, wouldn't they be bottleneck'd when they have to go through expensive traditional rails like USD/MXN during rebalance? Now there could be some economies of scale advantage. Maybe they get a discount by batching large rebalancing amounts? Ripple settlement still enjoys a speed advantage because the value transfer delay is shifted onto the more regular and predictable rebalancing phase and away from the client side. I'd like to hear from the XRPChat community about this. It almost sounds like it's not possible for Ripplenet to make fiat/fiat pairs obsolete. I must be missing something here. With Ripple's considerable team, they must have found a way to either largely marginalize the fiat/fiat inefficiency or beat it entirely during the rebalancing phase. Thank you all for the valuable thoughts!
  3. Hello XRP community, Long time lurker. Thank you for all the informative posts over the years. I have a question about the ODL network that Ripple is currently spinning up. To put context to the question, this is what I understand. XRP is the native digital asset to transact value across ODL (via Interledger Protocol?). It's sort of like the hub of a bicycle wheel. When a fiat-XRP pair is established, a spoke is added connecting that fiat to the XRP hub. That fiat currency can jump from the hub to any other connected fiat in two transactions (initiating fiat -> XRP and XRP -> final fiat). It's a better concept imo vs the many fiat-fiat pairings in the forex market and it creates a worldwide liquidity pool managed by ODL exchanges. This should be more efficient than the micro-pockets of various fiat-fiat liquidity pools across the world. I've been observing the ODL pathways through utility-scan. USD -> MXN / USD -> PHP / AUD -> USD are active. The reverse MXN -> USD / PHP -> USD / USD -> AUD transact so little volume I consider them effectively inactive (despite being open). My question is how does Ripple manage the ODL network to balance XRP liquidity on the inactive XRP -> fiat ends? It would seem to me that there would be an over-accumulation of XRP on the XRP/MXN, XRP/PHP ends for instance. I can see that if one ODL exchange site is short on XRP, they can source more XRP on their local open market (sellers and buyers, like the XRP community, that hold XRP and want the native fiat of that exchange or vice versa). But I don't see how that latent market liquidity is replenishable. The only way I could really see it working is if an exchange maintains a sister exchange in another fiat / country so they could freely transfer XRP back and forth to keep their respective pools balanced. But I haven't read anything about any exchange like Bitstamp actually doing that. As far as I can tell, they are all individual actors working with but also competing with each other. I sure could use some instruction. Appreciate any links you can give me to research papers, interviews or answers you might have. Thank you all. -J EDIT: For clarity & removed grammar/spelling mistakes.
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