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Hi @BobWay , as you can see from all these questions you truly are a breath of fresh air , we have been blessed to have many level headed members contributing some great views and information during this crypto winter , @Hodor for one and too many others to name , my suggestion would be for you to start an open club ( Hi , I'm Bob )  so you can have different threads with a different subject titles so we can use these as a source of reference, it would be great to structure it well from the get go. I'm not sure how'd you go about that , it's up to you of course. Each thread could be a title of a chapter,  dunno food for thought anyway.  Thanks ,your time and effort is appreciated by many.

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3 hours ago, Warbler said:

Hello and Welcome @BobWay !

Have you ever used bithomp? 


I have used bithomp!

If you look there you see that ~bway was activated by ~reddog. That account is original Ripple account and it was funded by JoelKatz. If you look in the ripple forums you'll see the ~reddog address linked to the forum account (Red).

I used ~reddog to experiment with personally.  ~bob was used for Ripple business mostly. You'll see that account activating a lot of other accounts. That was part of my duties as the original integration engineer.

You'll notice the the ~reddog account has GDW balance. GDW stand for "goodwill" it was the first (and maybe only) Local Exchange Trading System (LETS) implemented entirely on the Ripple ledger. I created goodwill to explain the LETS concept to the rest of the community before I started working for Ripple.

GDW is a counterparty free currency. However, according to this it looks like the bookkeeper is out of balance. If I get bored I'll try to figure out why.

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Hi @BobWay! Welcome and thank you so much for your great insights, i would really love to read blogs from you. I want to ask you, if you know, if Ripple ever considered or is considering building/opening a service like a money transfer company using their products or an online service that any individual could transfer money through XRP, anything like that? Thank you.

Edited by Panosmek
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There has been some growing frustration within the community at the perceived lack of information coming from ripple in regards to developments etc.  Is your presence on here a cunning ploy by the folks at ripple to be able to open up and interact with the community through as ex employee?😉

Regardless whether it has come from ripple or off your own back i have appreciated and enjoyed reading your replies.  Hopefully people remain respectful of the time and effort you are putting in to answer our questions.

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On 3/6/2019 at 10:04 PM, BobWay said:

I'm not sure I'm qualified to use fancy words like "geopolitical" correctly. :-) But there are huge improvements coming to the structure of banking.

Please keep in mind that while I think of myself as a reasonably smart guy, I'm by no means smart about everything. However, in my various positions at Ripple, a lot of much smarter people than me showed up in our office to tell me the details of their particular problems. They then left it to me to figure out if Ripple or its technologies could help. That was one of my key contributions to the company. I could almost always figure out a way to deploy Ripple technologies to solve other people's hard problems.

So "geopolitically" speaking, one of the weirdest things about banking is how the international relationships are structured. This is true especially among the smaller countries. Take a random made up example. Say Alice lives in Barbados and want to do a business transaction with Bob in Saint Lucia. It is just a standard two party business deal for services rendered. But Alice uses BBD and Bob uses XCD. So how do their banks settle that transaction?

Well it turns out in many cases they use USD. That sentence sounds pretty sensible not earth shaking to anyone... But how does that really work? Well it turns out that important banks in Barbados keep "correspondent" accounts with a large US bank. Let's say Citi in this case. And some large bank in Sant Lucia also keeps a correspondent account with a US bank. Let's say BofA in that case. The settlement actually happens by the Barbados bank telling Citi to wire money through the FedWire system to the St Lucia's account at BofA. These requests are transmitted via SWIFT.

But the crazy thing is that US law says that both Citi and BofA need to screen the transaction between Alice and Bob for compliance with US laws! And if a bad transaction slips through, both Citi and BofA can be fined huge amounts. So in effect, whether Alice in Barbados can do business with Bob in St Lucia becomes dependent on whether or not US banks want to allow it. Even though the transaction doesn't involve US jurisdiction at all!

The side effect of the US bank's risk in these transactions is that they've started closing the correspondent banking accounts for entire countries. The risk is just seen as too high for the reward (fees) that they can charge. This is called in banking jargon, "the de-risking problem".

A bridge currency like XRP changes that dynamic dramatically. Transaction that don't involve the US (or other third countries) don't have to travel through their systems to settle. That allows people to stop jumping through third party regulatory hoops and just get one with doing business.

I hope that counts as "geopolitical"!

This is a great window you have opened up on life inside Ripple, Bob - your initiative will improve trust between the community and Ripple Labs.  The communication between Ripple and the XRP community is good, but this service you are providing is beyond our dreams.

Have not seen that (above) before (maybe it is just me not keeping up), although I am aware that some banks pull out of providing Fx services to countries like Mexico because it is just too expensive.  You have just given us another reason why banks will be incentivised to use Ripple net.

Edited by Julian_Williams
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5 hours ago, BobWay said:

XRP distribution probably needs its own thread as well.

It turns out the reason Ripple the company still has so much XRP is a happy accident. It wasn't the original goal. It just turns out that distributing it was much more complicated than anyone expected. How hard could giving away free money be? At least that is what most of us thought at the beginning...

The happy part of the accident is that (in my personal analysis) without that reserve of XRP to draw on, it would be impossible to force XRP into the position of global bridge currency asset. So, curiously, I think Ripple holding that much XRP is critical to XRPs success. It also means that other cryptocurrency system that attempt to become a global bridge currency will fail for lack of the leverage necessary to displace existing bridge currencies.


I have been reading the thread which is already very long and illuminating

The ownership of 60% of the XRP by the founders and Ripple Labs seems to me to be a double edged sword.  Ownership has really helped because the  money from the sales of XRP has funded the development of the technology and XRP ecosystem.  There is still a long way to go and Ripple still needs these income inflows to complete the job it has started.

The downside seems to be that after XRP becomes the standard Bridge Currency and is valued at $10 (or even $100) and is used by all the countries of the world, Ripple becomes as powerful and rich as a country holding a reserve currency.  This would be not only be embarrassment, it would also be corrupting and dangerous for the world to have a private company with such power.. 

I have no doubt that the Ripple team are thinking about how to distribute the big amounts of XRP held by the owners of Ripple and the company itself.  Perhaps this is also a stumbling block for getting SEC to sign off XRP as a non security asset?  ...and then there is this huge hoard owned by Jed, the others may agree to disperse their stock to some international body, but how do we get Jed to co-operate?

Edited by Julian_Williams
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