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Ripple Employee
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JoelKatz last won the day on December 16 2017

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. My work as a developer for rippled has lately been a lot less actual coding and more meeting with the fine folks who are doing the coding. I have done a few experimental bits and handed off the promising ones to others.
  2. Once the release or cancel condition of an escrow has been met, anyone can release or cancel it. While it's not strictly required that anyone be able to do, it is important that not just the owner can do it. The point of an escrow is to take some control over the funds away from the owner. We designed it so that anyone could do so that a third party could do it if there was, for example, an escrow agent or a monitoring system. We don't always finish our own escrows right when they release. Of course, who cancels or finishes the escrow has no control over where the funds go, the set up of the escrow controls that. This also allows good samaritans to clean up expired or finished junk.
  3. Programmatic literally means that they're made by a program. Ripple employs third party market makers to execute these XRP sales to ensure that we can't control the timing or volume to manipulate the markets or benefit from inside information and also to ensure that Ripple insiders (including me) can't use intimate knowledge of the sales strategy to their own advantage. These are professional market makers who understand that we don't want to kill rallies or engineer the price but want to sell with minimal impact.
  4. Yes, that's exactly it. Programmatic sales are made by market making on open markets. They don't include a lockup and Ripple has almost no control over who gets the XRP. They effectively become part of the open market. Institutional sales are made directly to investors. They might include a lockup or other kinds of deals and Ripple gets to pick and choose who they do business with. One good thing I think these numbers clearly prove is that Ripple doesn't have to sell XRP at a discount to FIs or make mass sales to institutions with no lockup to raise revenue. Sales on the open market are the majority of the volume. That means that Ripple can afford to be picky in who it makes institutional sales to and thus it's reasonable to infer that Ripple likely thinks those have strategic value. Ripple does not need to sell XRP at a discount to raise revenue, the open market clearly suffices. And Ripple is not selling large amounts of XRP at a discount to undermine the market. On the downside, if you think that Ripple is a brilliant strategist making amazing backroom deals that will incentivize the entire financial industry to use XRP, seeing that such backroom deals are a fairly small percentage of total XRP released might be thought of as a negative. Alternatively, it means we're confident we'll succeed without such deals or that such deals don't involve large amounts of XRP. The point is -- you have the data.
  5. Ripple is not targeting XRP at "retail" use. There are a variety of reasons for this, including the regulatory challenge, but it's also because we (at least some of us) don't think any cryptocurrencies are quite ready for mass adoption through this route yet. (Just as you probably couldn't have launched anything remotely resembling Twitter or Facebook in 1988.) We did pursue a gateway strategy for several years. We had a very hard time onboarding gateways, and an unreliable gateway is probably worse than no gateway. Gateways faced challenges with regulatory compliance, customer service, and finding a good revenue model. Part of the problem is interest rates being at a very low level, making it not particularly profitable to hold other people's money. The security problems with interacting with cryptos didn't help either. So we pivoted to a strategy where we're promoting the XRP Ledger primarily as the ultimate store of XRP rather than as a decentralized exchange. We plan to expand and enhance our product line's XRP integration to provide XRP liquidity and take advantage of XRP liquidity wherever it may be. xRapid is our first big push to connect payments to XRP settlement.
  6. I think another interesting point is the ratio of sales off market to sales on open markets. You can argue the pluses and minuses of both, but having the actual numbers helps to put those arguments in context.
  7. There are probably a lot of factors at play. One of them is that there are a lot of transactions that seem, at least to me, to be basically junk. With transaction fees so low, there's no real disincentive to submit lots of junk transactions, and people do. The legitimate volume is somewhat lost in that junk. To get more useful numbers, you can limit yourself to just Payment transactions or OfferCreate transactions that crossed other offers. And then you can filter out Payment transactions that just seem to be moving assets for no particular reason (we used to see a lot of those, but not so much anymore). Our XRP Charts site and XRP site has metrics like that, and they're probably more useful than raw transaction volume.
  8. How does xRapid provide liquidity?

    And, to be clear, this is what xRapid does today. There are lots of obvious, and not so obvious, other ways you can do this. And different ways of using XRP liquidity to settle payments is high on our priority list. This is the first working scheme.
  9. So the blockchain just improves security. And it's faster and cheaper because ....?
  10. Final Settlement with Jed

    Off-ledger trading is the majority of trading today. I think the largest on-ledger XRP market is XRP to USD/Bitstamp and it's the 41th largest XRP market.
  11. This kind of question comes from the thinking that blockchains are magic and that if you just add them to things they get better. I think there are a lot of banks and related organizations madly trying to figure out where they're suppose to stick the blockchain to make things better.
  12. Nope. As you buy up more and more XRP, the price goes up. So you have to spend more and more money to do it, making everyone else who holds XRP richer and richer. It just isn't a realistic attack.
  13. I agree with you. Unfortunately, I don't know the exact details of how the transactions are timed or how the spreads are computed. The third party market makers we've employed understand that we don't want to kill rallies or engineer the price and that our desire is to choose sale targets and approximately reach them having as little effect on the price as possible. To prevent me from gaming the system either for personal benefit or to benefit Ripple, or inadvertently giving others the ability to do so, I am not given access to any details. Every suggestion I've made to them got back "we're already doing that", so I think they know what they're doing. They might adjust it to a long term median. They might back off when volume is above normal. Those things I don't know.
  14. Lowering XRP Min Balance

    Unfortunately, that blocks offline account creation flows. Since you don't know the starting sequence number for the account, you can't compose the transactions to configure it. That might not be fatal, but it is disruptive. But having your light account turn into a regular account after you wiped it out might be disruptive too.
  15. Lowering XRP Min Balance

    I guess it depends on the rules we decide to go with. If the rule is that sending less than 20 XRP automatically creates a light account, then it would succeed. That's probably what we'll do, so it won't fail. But if the account was removed and 20 or more XRP is sent, then a regular account will be created and 20 XRP will be locked as the reserve. That might annoy people. We could change it so that the Payment transaction always creates a light account by default. The account owner can promote it to heavy account if they wish. But we'd need a way to create a regular account with a Payment transaction because otherwise, existing flows for offline account creation will break. (Because you don't know the new account's starting sequence number and so can't prepare transactions offline.)