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Ripple Employee
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JoelKatz last won the day on August 4

JoelKatz had the most liked content!

About JoelKatz

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    Oakland, CA
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    Chief Cryptographer, Ripple
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  1. xCurrent / xRapid / xVia???

    Yes, I was referring to me. I'm one of many Ripple employees who were granted stock or stock options that vest over time if we continue to remain employed. There are really only three ways to get Ripple stock: 1) Work for Ripple, get offered stock options, wait until they vest, exercise them. 2) Invest in Ripple during a funding round. This is not easy to do now as Ripple can afford to be quite selective in choosing its investors and, by law, you have to be legally able to buy unregistered securities. Typically, Ripple would be looking for investors that either corroborate its valuation (for example, investors legally obligated to maximize value and who have the capability to do significant due diligence) or forge strategic alliances (such as financial institutions). 3) Buy Ripple stock through a registered broker from someone who already has it. There are companies such as EquityZen and SharesPost that are registered brokers in the US who can broker a sale of an unregistered security to a sophisticated investor.
  2. xCurrent / xRapid / xVia???

    I know at least one stockholder who is interested.
  3. xCurrent / xRapid / xVia???

    I think it's a lot like asking what makes a service offered over the Internet better than a service offered over a proprietary network. In the early days, this one factor wouldn't make all that much of a difference. But over time, you're either going to have to take over the world or interoperate using open standards. I also think that building deep pools of liquidity is going to cost a lot of money. PayCommerce can't materialize revenue from liquidity through a token. Ripple can. Even if you assume the price of XRP stays roughly where it is now, Ripple takes a third of its XRP revenue as dividends to stockholders, needs a third of its XRP revenue for other expenses, and Ripple sells its XRP over ten years, that still gives Ripple over $300 million per year for each of the next ten years that it can spend on incentivizing liquidity. No other revenue model that I can think of can compete with that. (Of course, you probably couldn't materialize $300 million the first year because there's unlikely to be enough liquidity. But that just means you get more later.)
  4. Yes, that's exactly right. Pricing can also take into account the costs that various gateways charge and the delays in their issue and redeem processes. So, all other things being equal, a gateway that has lower redemption costs and/or higher redemption speed might produce assets valued a bit more highly. Ripple permits you to place an offer to exchange any two assets. So you may see offers to trade USD issued by one gateway for USD offered by another gateway. There are also separate books to common assets. So there's a book between USD/Bitstamp and XRP just as there's a book between USD/Gatehub and XRP. When you make a payment, the pathfinding system looks at the various order books and rippling possibilities. If you hold the same currency from more than one issuer, or the recipient accepts the same currency from more than one issuer, those can be taken into account too. The pathfinder selects some paths and the payment execution engine can draw from combinations of those paths to get the best overall rate for the payment.
  5. Well, you could still finance a war either by raising taxes or by borrowing. The former is much more difficult if the population doesn't think the war is just because they feel the taxes. But, unfortunately, borrowing money still works and is not always painful enough in the short term to act as sufficient discouragement.
  6. My hope, though I don't really have any rational basis to think this other than a hope, is that the explosion of digital assets gives everyone the ability to hold the asset of their choice. And, when they have a choice, they won't hold an asset that can be debased by inflation. That is, I think eventually digital assets will act as a significant check on government's ability to finance things (like wars) by printing more money.
  7. xCurrent / xRapid / xVia???

    That's one of the reasons I try to come up with a new way to explain it each time rather than just referring people to other places where I've already explained it. There are so many possible way to answer the same question and we want to get all of them out there. Different answers will click for different people because they all had slightly different things in mind when they asked the question.
  8. xCurrent / xRapid / xVia???

    Here's a high level view that doesn't get bogged down in the details: Say I receive an international payment and then I want to send the money out using a domestic wire transfer. My bank either has to lend me money or wait until the international payment results in settled funds that it can use to fund the domestic wire transfer. If we want that to happen in seconds or minutes, the result of the international payment has to be that I now own some funds that were already wherever my bank needed them to be for me to send a domestic wire. So say the payment is from Thailand, and we want it to complete and settle instantly. That means someone will take ownership of the sending funds in Thailand. And someone in the United States will give me ownership of US funds that were already where my bank needs them to be. How will the person who gives up the US funds be compensated? And how will the person who takes the funds in Thailand pay for them? That's where XRP comes in. Why XRP? Because it can move in seconds, participate in conditional atomic transfers, has low fees and high throughput. But more importantly, there's a revenue model for Ripple to *make* it work for this application.
  9. Even if a transaction only takes a few seconds, as a practical matter, the funds are likely to remain at each end for some period of time before they go elsewhere. But also, if you don't know where you're going to need to send money and you're trying to be as efficient as possible, you'll hold the intermediary currency because then you only have to pay half of the cost. Say you're a company that need to makes lots of payments to lots of different places (like Uber, Amazon, and AirBnB). If some fraction of those payments wind up being bridged by XRP, it will make sense for you to hold a big enough pile of XRP to make those payments. That way instead of having to pay for two conversions, you only have to pay for one. And, on the flipside, say you have a big pile of money and you want to make money by exchanging it to facilitate other people's payments. Well, other people will need XRP to buy the currency they're trying to deliver. So you'll want to hold that big pile of money as XRP so that you can give them what they want and get what they're offering. At least, that's some of the thinking.
  10. It would also be 100% of the wrong thing. It would be like speculating if email could ever capture the volume of postal mail. Sure, if you were pitching email, you'd say that it has all the same use cases of postal mail. And someone would respond that it's not good for packages and the recipient can't physically store it. They might go on to say that maybe, at the most, 85% of postal mail doesn't absolutely require physical delivery, so maybe if email was ubiquitous it could capture 85% of postal mail's volume. But that would so obviously be very silly. To think of email as "like postal mail, but faster and cheaper" misses the extent to which being much faster and much cheaper fundamentally changes something. So, yes, at first you think of email as "if the other person has email, and you don't need physical delivery, it's faster and cheaper than physical mail", just as we think of XRP the same way today compared to conventional international payments. But I don't think any of us can predict where it will actually go.
  11. Secret Key doesn't match public key

    If we knew exactly what was going wrong, there's a chance we could recover the private keys. That's another reason it would be worth investigating. I wonder if offering a bounty would help or if I can generate interest inside Ripple in getting this figured out. It's a mystery. And I don't like mysteries. They give me a bellyache, and I got a beauty right now.
  12. Secret Key doesn't match public key

    If someone could track down exactly what's going on here, that would be extremely helpful. I've heard a few reports of this and suspect it's some incompatibility between ripple-lib and Safari. It may be an issue that affects other libraries as well, and it's a bit scary.
  13. Unlimited transaction rate. Is it posible?

    This was kind of how the original Ripple Pay system worked. There are a few problems with this approach. IMO, the two biggest are: 1) Each issuer's IOUs are only as reliable as that issuer's transaction processing equipment is. 2) Cross-issues atomic payments weren't possible. (Though now you could do this with ILP.)
  14. Mostly because Bitstamp is an exchange and Gatehub isn't. The rates you're seeing for Gatehub are coming from the XRP ledger's built in distributed exchange which usually doesn't have as much liquidity as most exchanges.
  15. Unlimited transaction rate. Is it posible?

    The same way people who run bitcoin full nodes are compensated, by having a server they can use for their transactions or to which they can sell access. As an extra bonus, they get a say in the evolution of the XRP ledger.