Potential XRP risks as outlined by Joel Katz

[pucksterpete]

7 minutes ago, cryptoman said:

I do not know of many companies out there are that transparent

Tether is......

[duckthepato]

well if you are afraid of risks  maybe you shouldnt invest
invest in gold instead i guess its the safest right?
find me a investment that is risk free?? 
i see none maybe hamburgers YUM YUM 

[JoelKatz]

2 hours ago, otstudio said:

Cheers to @JoelKatz for spilling as much as he can without cutting his own head off. Must be quite the tight-rope walk. Wonder if he's ever been called into the CEO office and told to zip it for a while..... Keep the good news rolling. 

Not yet. The thing that came the closest to getting me in trouble was this:

https://steemit.com/politics/@joelkatz/the-war-on-cash

I still think it's probably the best thing I've ever written and really need to make a longer version to make my key argument even more explicit.

[mistatee2000]

7 minutes ago, JoelKatz said:

Not yet. The thing that came the closest to getting me in trouble was this:

https://steemit.com/politics/@joelkatz/the-war-on-cash

I still think it's probably the best thing I've ever written and really need to make a longer version to make my key argument even more explicit.

I look forward to that longer version when your services at Ripple are no longer "critical"... I know I'm selfish. That said, what the Indian government has tried to achieve in eliminating the higher denomination bank notes could prove an interesting experiment for the rest of the world. I watch with interest as an avid believer in cash.

[Graine]

9 hours ago, JoelKatz said:

irreversible payments

I don't see why partners can't simply send back the xrp in case of an error. Since it's transparent, and apparently trackable. Not to mention w/e error-checking layer Ripple might've included in xRapid or a soft above it. 

[Hodlezerper]

36 minutes ago, JoelKatz said:

Not yet. The thing that came the closest to getting me in trouble was this:

https://steemit.com/politics/@joelkatz/the-war-on-cash

I still think it's probably the best thing I've ever written and really need to make a longer version to make my key argument even more explicit.

Are you guys aware of anyone in the banking industry or potential clients that are aware of your online presence or these forums in general? Are they ok anyone’s radar? Should they be?

 

[vanhalendlrband]

14 hours ago, Siniath said:

I still think the greatest risk to XRP is bitcoin. You never know when it's going to burst but one thing is certain: it will take us down with it. 

A sharp drop in price will make FIs very wary of the whole crypto space. It could throw us back years. 

So imo it's going to be a race: will XRP be adopted first or will bitcoin crash first. 

When has this ever happened? People always look at the XRP/BTC pair price not the dollar. According to the dollar this couldn't be more wrong. BTC can go up as much as it wants it will only affect margin traders on BTC pairs and that's it. The value would still remain the same against the dollar as it has.

Many times bitcoin goes up and XRP goes up with it like it did 2 days ago

[vanhalendlrband]

56 minutes ago, JoelKatz said:

Not yet. The thing that came the closest to getting me in trouble was this:

https://steemit.com/politics/@joelkatz/the-war-on-cash

I still think it's probably the best thing I've ever written and really need to make a longer version to make my key argument even more explicit.

All the risks that you had mentioned in the first post, I think could be said about anything. What if the sun starts sending out powerful solar flares and we don't have electricity for a decade then we wouldn't even have anything but paper money again or coins. If that even maybe back to the barter systems of Mesopotamia or something, crack out the old Papyrus.

Its always a risk but one thing I thought of was even if Ripple abandoned XRP, that usually doesn't spell the end of a coin if the original devs leave. Like XRP, if i'm not mistaken, is also with all its Ripple, and Ledger stuff aside, as a crypto its actually a great crypto in and of itself without any banks of FI's involved. 

I can tell you a few times waiting around for a bitcoin confirmation and XRP doesn't even really need any and its so fast. I sent from one exchange to another even and it was so fast I was like "holy smokes this is fast". 

I'm amazed just off the fact, even with the supply, that its the fastest coin around I think the value should be much higher than it is now just on that fact alone and regardless of all the other news we have heard regarding XRP and future likely use with AMEX, Cuallix pilot, and what you guys have shown us it can do to even accelerate the Ripple network at a cost savings with XRP ledger or other methods using XRP I think XRP is fantastic just the way it is. Even if there was a competitor that doesn't seem to hurt Zcash and Monero's any and they're both Anonymous coins that seem to be able to function well and even hold a good decent price but in principle do the same job just differently.

Companies can survive peoples bad actions too by firings and what not like if someone at mcdonalds did something I don't see the drive thrus shutting down tomorrow or if even the government would allow all that job loss to take place even. If the tech or product is needed it will survive all of these negatives even if they come up I think.

[JoelKatz]

1 hour ago, Graine said:

I don't see why partners can't simply send back the xrp in case of an error. Since it's transparent, and apparently trackable. Not to mention w/e error-checking layer Ripple might've included in xRapid or a soft above it. 

Sure. But you can't reverse the intermediary payments to market makers. Consider a hypothetical:

They payment is USD->MXN. So internally, there's a USD->XRP transfer and an XRP->MXN transfer. These transfers are irreversible. So if, for example, the MXN can't be accepted at the destination for some reason, you can reverse the entire payment. You'll pay four spreads (two each way) but the loss will be comparable to the losses associated with similar failures today.

So, yes, you can ask the Mexican partner to return the MXN. But that only works if you got the right number of MXN out the other end.

If, for example, the XRP was sent to the wrong address or one of the rates for the two halves of the transfer was way off what the rate should have been, there is an irrecoverable loss. Similarly, if for some reason the USD->XRP transfer succeeds but there's slippage on the XRP->MXN side, you have to handle that properly.

There are a variety of complex failure cases that the software must sanely report and handle before you can trust it to move large amounts of money without constant human intervention.

[RLP18PharmD]

2 hours ago, Graine said:

I don't see why partners can't simply send back the xrp in case of an error. Since it's transparent, and apparently trackable. Not to mention w/e error-checking layer Ripple might've included in xRapid or a soft above it. 

JMHO, I think that most FIs, central banks, etc will adopt XRP but want to see if RippleNet/xCurrent can handle the transaction volumes as more and more of Ripple's partners begin to roll out their various payment systems etc. I think once the big kahuna (i.e. Japan) brings their enviable inter/intra-continental network online for all other FIs to see what they've been missing out on is when FOMO will really begin to settle in.

[Hodor]

7 hours ago, JoelKatz said:

There are other partners using or testing xRapid. But Cuallix is the only one that we have announced yet.

This made my week. 

I know what to be thankful for tomorrow sitting around the table! 

Thanks and Have a Happy Thanksgiving @JoelKatz

[Hodor]

6 hours ago, cryptoman said:

I do not know of many companies out there are that transparent, and certainly not within the digital currency sphere.  @Hodor not sure if you've touched upon this in your blogs but that level of transparency is something that should definitely be reckoned with. 

This definitely enhances and fosters a positive public image &, adds to the good reputation as well as refutes the naysayers and those that don't bother to do their research and due diligence.

 

I agree about the positive impression that honest and open communication has on the XRP community - I really appreciate the fact that @JoelKatz, @miguel and a LOT of other Ripple representatives interact on social media at the level that they do. 

[Graine]

12 hours ago, JoelKatz said:

If, for example, the XRP was sent to the wrong address

I was under impression wallet addresses (since they are exchange's wallets) are hard-coded for each corridor. Are they dynamic?

Does the xrp payment for xRapid carries any memos? Does it have destination/origin tag? Invoice?

 

12 hours ago, JoelKatz said:

but there's slippage on the XRP->MXN side,

...that Ripple will compensate. At least initially. 

How did Ripple handle slippage for xCurrent? Is it similar to what will be done for xRapid?

[kanaas]

1 hour ago, Graine said:

 

...that Ripple will compensate. At least initially. 
 

Why would they do that? Would surprise me it they will do rebates for errors that are not theirs fault. AFAIK it's about payments that are completely settled, but for some reasons landed wrong what cannot be the responsibility, neither under control of Ripple