Jump to content
xrpmommy

Ripple vs. the Establishment: What Many Don’t Know

Recommended Posts

At the end of the day, profits matter more than anything else. The leaders of these large organizations have one focus in mind, making more money. And while there may be challenges along the way, ultimately the provider that yields the most efficient, profitable system will win out. That is something that I have no doubt of. And right now, that is Ripple and they've proven their desire to work with these banks, not against.

Share this post


Link to post
Share on other sites
Guest

I guess that's why Ripple are talking with the Central Banks.  Go straight to the top dogs.

Share this post


Link to post
Share on other sites

I thought someone might ask this question regarding sanction enforcement. Actually, Ripple has planned the release of two key amendments (Checks and DepositAuth) as part of their v0.90.0 update on tomorrow to be exact and can be found here. Excerpt from 'DepositAuth' amendment page:

"Adds a new account flag, DepositAuth, which lets an account strictly reject any incoming money from transactions sent by other accounts. Businesses can use this flag to comply with strict regulations that require due diligence before receiving money from any source."

"When an account enables this flag, Payment transactions fail if the account is the destination, regardless of whether the Payment would have delivered XRP or an issued currency. EscrowFinish and PaymentChannelClaim transactions fail if the account is the destination unless the destination account itself sends those transactions. If the Checks amendment is enabled, the account can receive XRP or issued currencies by sending CheckCash transactions."

I'm sure the details regarding the proper financial regulations are being developed to address these types of issues. All-in-all, payments from clandestine or unknown entities can be "flagged" and deem inappropriate and not accepted or facilitated via RippleNet's 'DepositAuth' feature. Also, you have to remember that joining the RippleNet network one has to agree to the proper KYC/AML/CFT regulations. Meaning that all parties are of a particular transaction are known to one another to comply with such said regulations and if not the transaction is not facilitated. Also, RippleNet is governed by the RippleNet Advisory Board.

Edited by King34Maine

Share this post


Link to post
Share on other sites

Hey everyone, I wrote the quoted article on The Merkle and I'm happy to see it's evoking a discussion. However, I would like to clarify a few things. First, the issue is not purely financial @Chris_Reevesand @Malloy . While banks prioritize making money, geopolitical power is just as important. Banks and governments are closely intertwined as I'm sure you all know and with SWIFT, each could have its way - the government exercising political power and banks earning from the high transaction fees. With RippleNet, as with all other blockchain projects, the power is being given back to the people. This may not sit well with the establishment. This was why towards the end of the article, I suggested that in the not-so-far future, this conglomerate of top banks may develop their own centralized blockchain platform which they can still use to strong arm renegades. 

Second, my aim was not to discredit the progress Ripple has achieved. It was purely to highlight the other factors at play. While Ripple is really working on bettering their network as has been highlighted by @King34Maine the factors at play are not strictly academic. But I agree with you Maine, the update will go a long way in making Ripple a more lucrative option for banks 

Share this post


Link to post
Share on other sites
46 minutes ago, Kaaru said:

I suggested that in the not-so-far future, this conglomerate of top banks may develop their own centralized blockchain platform which they can still use to strong arm renegades. 

Please explain your thinking here. It really makes no sense imo

Share this post


Link to post
Share on other sites
39 minutes ago, Gepster said:

Please explain your thinking here. It really makes no sense imo

RippleNet solved SWIFT's transaction speed and high costs challenge, right? It did so through a blockchain-powered network. However, RippleNet is at the mercy of the banks, if they refuse to use it, then Ripple loses its primary clientele. What I meant was, SWIFT and the powers behind it could just as easily develop their own blockchain-powered network. After all, the technology is not exclusive to Ripple. This way, they can keep enjoying their centralized system with the benefits of the blockchain. As a matter of fact, SWIFT has already started working on a new initiative it calls the Global Payments Innovation Initiative and one of the subprojects is a blockchain network which is in its pilot phase which if you go through the details on their website, it's a response to RippleNet. 

I hope this makes a bit more sense of my earlier opinion @Gepster

Share this post


Link to post
Share on other sites
27 minutes ago, Kaaru said:

RippleNet solved SWIFT's transaction speed and high costs challenge, right? It did so through a blockchain-powered network. However, RippleNet is at the mercy of the banks, if they refuse to use it, then Ripple loses its primary clientele. What I meant was, SWIFT and the powers behind it could just as easily develop their own blockchain-powered network. After all, the technology is not exclusive to Ripple.

Correct, but that doesn't mean it will be a breeze to create a separate network like RippleNet. You need the people, ideas, leadership, means and much more to make it happen. And why invent the wheel twice if Ripple is clearly open for partnerships? The ventures of SWIFT into blockchain have not proven fruitful up until now, and the banks involved aren't exactly powerhouses of innovation. They will still need the people that currently are employed by Ripple.

But you make another point in the blog that is valid regarding the sanctions against Iran. RippleNet will obviously cross paths with political interests and that's where they are at the mercy of sovereign nations.

Share this post


Link to post
Share on other sites
21 hours ago, CaligulazBaby said:

I guess that's why Ripple are talking with the Central Banks.  Go straight to the top dogs.

I am surprised no one is really discussing the bi-focused approach adopted by Ripple. 

On the one hand you have them talking to central banks and by extension regulatory bodies. If they can sway them they can make banks fearful of legislative limbo coming on board.

On the other hand they are working with direct money transfer companies like WU. While these businesses depend on banks to hold assets they are large enough to have influence of their own and can move assets to other more liberal minded banks prior to using the tech to avoid complications.

It's really genius actually. Banks have business risk in money transfer companies becoming less dependent and more competitive at the same time while also recieving encouraging messages and noise from regulatory and central authorities. 

There is also a added incentive. Banks make money from lending. Yes, cross border transfers are a business, but I doubt anyone would say it's a banks core business. That being said I wonder if businesses can settle instantly if it would affect short term loans and end of day business settlement rates. There is potential for risk to a banks core functions.

Share this post


Link to post
Share on other sites
1 hour ago, Kaaru said:

What I meant was, SWIFT and the powers behind it could just as easily develop their own blockchain-powered network.

SWIFT initiative is just a build on top of their old nostro/vostro system. They already stated that they wont be using a digital asset. 

The messaging system is cool and all, but more than half of the cost reduction that Ripple can provide, comes from using a digital asset (one without counterparty risk).

 

Edited by Gepster

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...