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JoelQuinn

Ripple Insights | Siam Commercial Bank Pioneers RippleNet’s “Multi-hop” Feature

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From the Ripple Docs:

The most fundamental principle of inter-ledger payments is conditional transfers. Multi-hop payments have a risk problem: the more hops in the middle, the more places the payment can fail. Interledger solves this with the financial equivalent of a "two-phase commit", where the two steps are (1) prepare conditional transfers, then (2) fulfill the conditions to execute the transfers. The Interledger project defined a crypto-conditions specification to standardize automated ways to define and verify conditions, and settled on SHA-256 hashes as a "common denominator" of such conditions.

Solution: The Escrow feature makes the XRP Ledger ideal for bridging multi-hop payments using the Interledger Protocol, because it natively supports transfers that deliver XRP based on PREIMAGE-SHA-256 crypto-conditions, and it executes those transfers within seconds of being presented with the matching fulfillment.

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6 minutes ago, essexboyracer said:

From the Ripple Docs:

The most fundamental principle of inter-ledger payments is conditional transfers. Multi-hop payments have a risk problem: the more hops in the middle, the more places the payment can fail. Interledger solves this with the financial equivalent of a "two-phase commit", where the two steps are (1) prepare conditional transfers, then (2) fulfill the conditions to execute the transfers. The Interledger project defined a crypto-conditions specification to standardize automated ways to define and verify conditions, and settled on SHA-256 hashes as a "common denominator" of such conditions.

Solution: The Escrow feature makes the XRP Ledger ideal for bridging multi-hop payments using the Interledger Protocol, because it natively supports transfers that deliver XRP based on PREIMAGE-SHA-256 crypto-conditions, and it executes those transfers within seconds of being presented with the matching fulfillment.

Ok thanks, helpful! i'll look more into that document

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xRapid is not yet current due to poor XRP liquidity witihin ASEAN countries. There must be more XRP supported exchanges, XRP/FIAT pairings and xCurrent enabled banks within those countries before xRapid can shine there.

ASEAN countries:

Myanmar, Thailand, Cambodia, Singapore, Indonesia, Malaysia, Vietnam, Laos, Philippines and Brunei.

This is good news anyways because you have to start from somewhere. Siam Commercial Bank (SCB) and its xCurrent will be utlized by other non-Ripplenet ASEAN financial institutions for starters which will more or less encourage them to join Ripplenet in future.

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On 9/28/2018 at 6:01 PM, lucky said:

Payments can then start flowing across multiple paths, and while the payment is flowing, adjust to use the path of least resistance (time and cost). 

[removed]

Edited by Guest

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31 minutes ago, EnchanterIO said:

Doesn't this destroy the purpose of XRP?

Nope. xCurrent assumes that the bank does have several accounts with dormant money in it. Many ASEAN countries does have very inflationary currencies and they must either hold the money in their accounts all the times which means they are losing money for sure every year. Even if they hedge their money positions there are hedging costs involved. xRapid enables them to source liquidity from the exchanges instead holding lots of inflationary currencies.

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