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BobWay

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49 minutes ago, BobWay said:

This is a great couple of questions. I feel handicapped by not having a whiteboard to draw on in answering. Excuse my ASCII art...

The best way to think of XRP usage is in the context of Alice and Bob. But in the current world where neither Alice nor Bob know anything about XRP.

  • Alice is part of an ecosystem of payment senders. The Alice's of the world work their day jobs and receive and hold their money in the local fiat currency.
    • (Alice) ----@ (Bank A)     So in Ascii art, "Alice hold her money in an account at Bank A"
  • Bob is part of an ecosystem of payment receivers. The Bob's of the world also hold their money in their local fiat currency.
    • (Bank A) @----- (Bob).     "Bob holds his money in an account at Bank B"

In drawing it out, you ALWAYS end up with a graph. That graph tells you if and how money can flow and how much it will cost along each path option.

  • (Alice) ----@ (Bank A) @---- (Mark) ----@ (Bank B) @---- (Bob).    "Mark holds accounts at both Bank A and Bank B" He allows money to flow through his accounts.

Note: These are the types of diagrams the Ripple graph was intended to explore.

So notice that I didn't list XRP anywhere in the above diagram. That seems like it sucks at first. But it is worth realizing that what I've done goes beyond Alice and Bob as individuals. What I've done is connect EVERY customer  of Bank A with EVERY customer at Bank B. Meaning I've connected two whole ecosystems.

If I replace the banks with something larger, then the payment potential gets larger.

  • (Alice) ----@ (SPEI@---- (Mark) ----@ (IMPS)  @---- (Bob).        "Now anyone with a bank account in Mexico can send synchronized payments to anyone in India"

 

But what about XRP? Isn't Mark just going to get rich here trading fiat?

Yes, but the first step is to get money moving through OUR system (RippleNet). The least scary way (for banks) to do that is via fiat like they are used to.

XRP comes in as an alternate lower cost path.

  • (Alice) ----@ (SPEI@----------------------- (Mark) ----------------------@ (IMPS)  @---- (Bob)                 We want this path to cost more
  •                       (SPEI@---- (Mark) ----@ (XRP) @---- (Mak) ----@ (IMPS)                                      We want this path to cost less

You can add that path without upsetting the original topology. If a bank is scared of crypto they can pay more. if they want to pay less, they can route through crypto. I'll leave it to you to decide how long you think banks will want to pay more for transactions.

 

So a good way to think about Ripple's strategy is as multiple teams building out operational volume in different sections of the graph.

  • The xCurrent part of RippleNet is building out operation value on the top line. This includes growing the total pool of "Alices and Bobs".
  • The xRapid part of RippleNet is building out the operation that will assure that the XRP path always costs less.

Initially this looks like two disconnected ecosystems, Banks vs Payment Services. But I think it is more insightful to think about it as building operational mastery in different conceptual areas. The payment services xRapid is targeting already use the top line banking ecosystem. They are not closing their bank accounts. They are just augmenting them with additional lower cost paths. One you realize that, it become easer to see how banks can adopt these same lower cost paths with few additional operation changes.

 

With that as background, keep an eye on Japan, India, Mexico, and Canada. Then I'd start looking for large markets in South America and East Asia. As I mentioned in a previous post, any countries that are current clearing payments through US banks, but are at risk of "de-risking" account closure are very good candidates to use XRP. This allows them to dis-intermediate the correspondents looking to de-risk them.

Again, I don't have first hand knowledge of which partnerships are farthest along. But that is the way I analyze the larger financial ecosystem as a whole.

@BobWay this is gold! Thanks alot

Question: Is it part of  Ripples strategy to start with low value, high volume payments or is it just a byproduct of where the price per XRP is at? Whats the mindset behind that vs targeting high value low volume?  My current understanding is that low value would reduce price slippage at the exchange endpoints(for xrapid)

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48 minutes ago, BobWay said:

This is a great couple of questions. I feel handicapped by not having a whiteboard to draw on in answering. Excuse my ASCII art...

The best way to think of XRP usage is in the context of Alice and Bob. But in the current world where neither Alice nor Bob know anything about XRP.

  • Alice is part of an ecosystem of payment senders. The Alice's of the world work their day jobs and receive and hold their money in the local fiat currency.
    • (Alice) ----@ (Bank A)     So in Ascii art, "Alice hold her money in an account at Bank A"
  • Bob is part of an ecosystem of payment receivers. The Bob's of the world also hold their money in their local fiat currency.
    • (Bank A) @----- (Bob).     "Bob holds his money in an account at Bank B"

In drawing it out, you ALWAYS end up with a graph. That graph tells you if and how money can flow and how much it will cost along each path option.

  • (Alice) ----@ (Bank A) @---- (Mark) ----@ (Bank B) @---- (Bob).    "Mark holds accounts at both Bank A and Bank B" He allows money to flow through his accounts.

Note: These are the types of diagrams the Ripple graph was intended to explore.

So notice that I didn't list XRP anywhere in the above diagram. That seems like it sucks at first. But it is worth realizing that what I've done goes beyond Alice and Bob as individuals. What I've done is connect EVERY customer  of Bank A with EVERY customer at Bank B. Meaning I've connected two whole ecosystems.

If I replace the banks with something larger, then the payment potential gets larger.

  • (Alice) ----@ (SPEI@---- (Mark) ----@ (IMPS)  @---- (Bob).        "Now anyone with a bank account in Mexico can send synchronized payments to anyone in India"

 

But what about XRP? Isn't Mark just going to get rich here trading fiat?

Yes, but the first step is to get money moving through OUR system (RippleNet). The least scary way (for banks) to do that is via fiat like they are used to.

XRP comes in as an alternate lower cost path.

  • (Alice) ----@ (SPEI@----------------------- (Mark) ----------------------@ (IMPS)  @---- (Bob)                 We want this path to cost more
  •                       (SPEI@---- (Mark) ----@ (XRP) @---- (Mak) ----@ (IMPS)                                      We want this path to cost less

You can add that path without upsetting the original topology. If a bank is scared of crypto they can pay more. if they want to pay less, they can route through crypto. I'll leave it to you to decide how long you think banks will want to pay more for transactions.

 

So a good way to think about Ripple's strategy is as multiple teams building out operational volume in different sections of the graph.

  • The xCurrent part of RippleNet is building out operation value on the top line. This includes growing the total pool of "Alices and Bobs".
  • The xRapid part of RippleNet is building out the operation that will assure that the XRP path always costs less.

Initially this looks like two disconnected ecosystems, Banks vs Payment Services. But I think it is more insightful to think about it as building operational mastery in different conceptual areas. The payment services xRapid is targeting already use the top line banking ecosystem. They are not closing their bank accounts. They are just augmenting them with additional lower cost paths. One you realize that, it become easer to see how banks can adopt these same lower cost paths with few additional operation changes.

 

With that as background, keep an eye on Japan, India, Mexico, and Canada. Then I'd start looking for large markets in South America and East Asia. As I mentioned in a previous post, any countries that are current clearing payments through US banks, but are at risk of "de-risking" account closure are very good candidates to use XRP. This allows them to dis-intermediate the correspondents looking to de-risk them.

Again, I don't have first hand knowledge of which partnerships are farthest along. But that is the way I analyze the larger financial ecosystem as a whole.

It is so nice to hear from Bob and Alice again. It has been a while. 

My question for you, Bob:

Ripple seems to me as one of the most transparant companies in digital asset area. Still I have a feeling that Ripple is still an iceberg with a lot under the hood. The same I feel about the XRPL. In your opinion, what is the biggest public secret about both Ripple and the XRPL that you think people should know, but doesn't seem to be known? 

So I don't mean a real non disclosure thingy, but something that is out there but people or institutions fail to see. 

Looking forward to your reply and thanks already. 

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38 minutes ago, BobWay said:

What I've done is connect EVERY customer  of Bank A with EVERY customer at Bank B. Meaning I've connected two whole ecosystems.

Forgive my ignorance, but how does one get information on all clients at two random banks to graph all potential connections to calculate, for instance, which paths are the low-hanging fruit?

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15 minutes ago, BobWay said:

We've also has the markets team analyze alternative rebalancing paths than can compensate for one-way-flow price imbalances

Could you elaborate on the rebalancing? Thanks Bob!

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Posted (edited)

Hi Bob,

Great having you over here! And sorry to hear you had health issues. I have a few questions.

1.) Your where saying Ripple hasn't been so active at community management. But are Ripple Employees even allowed to speak outside on social media? In order words, do you have more freedom then before to talk out loud?

 

2.) Regulations seem to be a big thing as you pointed out before. In social media and especially Twitter, people love calling Ripple a scam and XRP a security. That must hurt internally. What are the expectations and or timeframes on SEC clarity? Further, would it even be a real deal breaker?  Can't Ripple move the whole operation to Europe for example?

 

Thanks again to interact with us,

 

Edited by CryptoGerrie

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Posted (edited)

@BobWay, you have been a breath of fresh air blown into the conversation about Ripple and XRP. I appreciate  your willingness to answer so many questions with such a (seemingly) honest take and position.

I look forward to listening to more of your conversations and learning more about where "we" are today because of your efforts and those of so many others. 

 

Blessings!

**Edit** that offer for the XRP Community blog stands...message me if you're interested.

Edited by buckor

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Thanks for this @BobWay, so insightful.

Here’s my question- back in September 2018, we had 3-4 days where, like clockwork, XRP saw relatively large price increases for a few hours from 12:00GMT. We haven’t seen anything similar since and because of the nature of the timing, it’s been speculated that this was due to some sort of testing. Are you able to shed any light on that? 

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4 minutes ago, Howie said:

Thanks for this @BobWay, so insightful.

Here’s my question- back in September 2018, we had 3-4 days where, like clockwork, XRP saw relatively large price increases for a few hours from 12:00GMT. We haven’t seen anything similar since and because of the nature of the timing, it’s been speculated that this was due to some sort of testing. Are you able to shed any light on that? 

Yes if you have any insight in that which you can share, it would really help out. 

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