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JoelQuinn

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

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44 minutes ago, EnchanterIO said:

"because there isn't a need for direct relationships between every bank"

I still think you just described an XRP purpose. The whole point of XRP is to connect 2 independent banks that don't talk to each other automatically as far as every bank holds XRP, the ledger will automatically handle the exchange without the banks having any agreement (being connected). Maybe I am missing something important. And I don't see why this Multi-hop coldn't actually be used outside of borders.

I'm referring to payments into and out of the ASEAN region.  Every bank in the region doesn't need to be RippleNet participant.  But now for instance a Santander can send payment to a small Thai bank via the SCB 'hop' without a direct relation between Santander and the small bank.  And it is that leg into and out of the region where XRP can happen.

It of course also helps corporates using xVia who need to send payments into and out of the region. Makes it cheaper/faster so that even lower value payments become more viable.

Edited by PG1

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2 hours ago, lucky said:

This is where ILP really gets to shine. Crypto exchanges can also be a hop. It becomes even more interesting if you don’t think of payments as a single transaction, but as a stream of very small transactions. 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).

You are describing ILPv4's Universal Mode, which superseded Atomic Mode[1]. Ripple's products implement a different, proprietary variation of ILP that favors Atomic Mode instead[2].

 

20 minutes ago, essexboyracer said:

Correct AFAIK. ILP (W3C) is like the open source version of Rippled. Anyone can download it and run a ledger

Rippled is the software that executes the Ripple Consensus Protocol Algorithm, relays transactions in the network, and maintains copies of the ledger[3].

ILP is a protocol, it isn't a ledger and doesn't produce one[4]. That protocol only has a use case if you run at least two different ledgers.

 

References:

1. Simplifying Interledger: The Graveyard of Possible Protocol Features, by Evan Schwartz > 2. The Notary: Fully Atomic Payments

2. AMA with David Schwartz on r/IAMA 2/27/2018 at 12:30 pm (PST) (see answer by mDuo13)

3. XRP Ledger Dev Portal > Home > Use Cases > Run a rippled Validator

4. ILP-RFC 0027 Draft 5

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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.

Indeed. MMs on the exchanges make the fiat sources dynamic and the cost of the exchange and the fx spread must be way cheaper than holding nostros or being exposed a few days to volatility on exotic fiat rates

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Guys, we just got some new info:

This means that there is no longer point to think that xRapid benefits only the customer alone who have implemented it. Instead, xRapid benefits all parties who are properly connected to the particular xRapid customer. The xRapid customer still reaps most of the benefits: they save money by utilizing it for their own transactions and also by "renting" it to the other parties of the region who use it as proxy to source liquidity for their transactions. This will very likely increase demand -> volume -> price for XRP. Everybody eats!!!

I do not know does above consider RippleNet customers only or does this consider also banks that are not yet member of RippleNet? However, I guess this is about RippleNet customers only.

Edited by hallwaymonitor

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Just like a path payment. 

USD=> USD/EUR(xCurrent customer with multi-hop)=>EUR/MXN((xCurrent customer with multi-hop)=>MXN/XRP(xRapid customer)=>XRP/PHP(xRapid customer)=>PHP

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1 hour ago, hallwaymonitor said:

Guys, we just got some new info:

This means that there is no longer point to think that xRapid benefits only the customer alone who have implemented it. Instead, xRapid benefits all parties who are properly connected to the particular xRapid customer. The xRapid customer still reaps most of the benefits: they save money by utilizing it for their own transactions and also by "renting" it to the other parties of the region who use it as proxy to source liquidity for their transactions. This will very likely increase demand -> volume -> price for XRP. Everybody eats!!!

I do not know does above consider RippleNet customers only or does this consider also banks that are not yet member of RippleNet? However, I guess this is about RippleNet customers only.

Wow this is great new feature and very bullish for XRP.

Every member from RippleNet can benefit from xRapid without even touching it or taking any regulatory risk. Than means that PNC and every other US bank can benefit from xRapid and XRP and don't have to worry about the SEC at all.

I think at first there will be a few but at the end a lot of banks will also want to adopt the “Multi-hop” Feature because of the extra fees and imagine what will happen when the regulatory uncertainty disappears.  :big_boss:

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