KarmaCoverage

Excellent write up @Hodor I'm as excited about Coil as I was about ILP. Business model innovation is the most dangerous kind of innovation for incumbents to weather.

Futures can enable the investor to bet "long" or "short". In fact every contract has some trader on both long & short side of it. The good thing is that they enable a trader to control their risk exposures. Options are better IMO because you have more strike prices, you can do multi-leg trades and control your risk exposure more acutely. To be fair though, I've never traded futures or forward contracts.

I think it is broadly underappreciated just how significant Ripple's war chest of XRP will be in stimulating liquidity growth through their "market maker incentives".

It is an indication of the broader crypto markets maturation. So what¿ if it's bitcoin first, something has to be the crash test dummy. The key point is that a large credible exchange is offering futures on a digital asset. I know there are others that offer SWAPs, but they are smaller than Bakket.

https://www.coindesk.com/bakkt-says-its-cleared-to-launch-bitcoin-futures-next-month Surely XRP futures will follow, but IMHO this represents a significant advancement in the maturation of the crypto markets. The markets need futures for risk management practices to be accomplished. Cred already uses futures to hedge the risk exposures when they facilitate loan of XRP.

Nah bro, sell everything immediately. ...but seriously, I'm reading through this and it is pretty good, it is from 2018, but like as was said above, this is all dead inline with Ripple's talking points.

There was a thread about the data flow through Coil, and privacy issues. I forget what the final thinking was, but I'd think some kind of VPN or ZKP methodology could provide appropriate privacy.

I believe the answer is yes. It's been a while since I looked at Coil under the hood, but I think they made a major technology shift towards a browser plugin (or maybe it was away from the plugin methodology, I should double check). Anyway the design goals of Coil is to create a seamless experience for users and content providers. Content providers should be able to easily provide content with both a "coil: pay for play" revenue model and simultaneously an "advertising revenue model" for users who don't want to pay to play.

I found it invigorating , So fun to see all the collaboration and progress. The thing about fundamental innovation, is that it always "takes root at the edges" of the market. China has been wanting to see the IMF/World Bank have some competition for 20 years. It's been clear for a while, but this video drove home the point... the Asian 10 payment markets are going to be the first stepping stone for the IoV.

Just listened to the whole thing, this was excellent. @xrpmommy Where do you find these? I didn't know that the "Asian 10" had an payments interoperability initiative. The regulator lady was great to hear, and everything they said seemed to line up with what Ripple has envisioned and communicated.

Someone correct me if I'm wrong, but aren't all/most of the stable coins simply structured like a margin loan? @Stellios Aside from risks baked into how a "stable coin" is structured, you have to realize that there is a need to network together all financial networks globally. A network of financial networks. Personally I think it is a great idea for banks to serve up their own stable coins, it would be the exact same thing as a Band Deposit, but digital. Then I think that would encourage the Central Banks to hit the gas on CBDC, which would simi-invalidate the bank deposit DA, but not really. Remember when the internet was forming and the corporates were building their own intrAnets? Banks standing up their own DA only makes sense when looking at it as just a digital bank deposit... but no single Corp network ever became "the internet". Maybe AOL came the closest, and we know what happened with that. This is why ILP was such a genius strategic move from Ripple. They recognized early that their Rippled/XRPLedger tech would have to compete with other accounting systems, both distributed and centralized. Then their bet became "XRP as a bridge asset", or said another way "XRPLedger as a bridge ledger", which makes sense to me on the surface, because internationally sometimes neither transacting party wants to submit to FX risk, or holding fiat in the other jurisdiction. Time will tell, but I've been genuinely surprised by the brilliance of two or three of the Ripple team's moves. It took me some time to understand though. I think the paradigm shift is in understanding the nature of how distributed systems will impact the environment in which Financial Services will be operating going forward. You have to know both "the old world" & "the new world" to manage the transition.

r3 has the distributed business logic, Ripple has the distributed transaction settlement methodology, some collaboration would be sensible. I was unaware of SBI's involvement with r3, interesting.

It would be a terrible idea to have the US payoff all it's debt. We need the benchmark for a "risk free" asset.

At first glance, this looks like RippleNet, not IoV. This is a payment flow from one USD Corp, to two beneficiaries in another currency. The internal flow at each FI look to be inline with how Ripple has been articulating to banks how RippleNet would work for years. Because there will be IP fights, where other banks try to tell BoA they can't do something using a certain patented method. That and the IP attorneys both want work now, and when the fights start.

I've thought about this question before. How much liquid value does XRP need to have, to serve 100% of the global international payment flows? Start with the $x trillion "locked up" in nostro acts, then consider inventory turnover cycle times being drastically improved (less time). Once you answer that 100% number, then you can reduce it to actual market share. Once you get that number, it may be interesting to see XRP value Then I would consider a growth rate in global payment flows, say 2% existing growth + 1% for boost in economic activity due to reduced transaction costs & time. So say 3% (I'm making this up out of thin air, it is the methodology that matters), then extrapolate that into some sort of XRP demand growth trendline. Then you can consider other market forces, like speculation and resistance to adoption by incumbent players. Obviously nobody knows, but it would be a fun exercise. D Edit: Great video btw.