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Answer: Wen Moon?


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5 hours ago, BobWay said:

But, I believe, it is actually possible to force XRP into the position of de facto bridge currency. And that is what that patent is about.

so in summary, is it fair to conclude that ripple (or another designated entity) sitting on a massive pile of xrp is in fact a preferable strategy to distributed minting (mining) and other token distribution methods? this is what i always thought was ripple's secret sauce, not because of how much they own in and of itself, but bc they can use the stash to bootstrap and fund liquidity over and over again until xrp is a defacto bridging asset... and in fact, even if we assume a BETTER (faster, cheaper, more secure) network token comes along, it can't compete without using the same strategy (of holding back massive amounts of the token to fund the network rolout and liquidity incentives)

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8 minutes ago, zerpdigger said:

Is it also scalable, either manually somehow or ideally programmatically (i.e. in an automated, online manner)?

Absolutely, it has to be 100% automated. There is simply too much information to keep up with otherwise.

And it also has to be scalable in the sense that as the volume of payments through XRP as a bridge increases dramatically, the amount of XRP you need to support the mechanism does not increase linearly with volume. Otherwise, you'll eventually run out of XRP, the mechanism will fail, and XRP will cease to be profitable as a bridge currency. Always remember, "It's a profit deal!"  If you can assure that, it takes all the pressure off!

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50 minutes ago, DucPeter said:

Thanks for another great answer, @BobWay! But to help me understand you right: what would you consider short term or long term?

I wrote in the top post that I believe that in the short term the XRP price will be spikey.

XRP becoming a the worlds de facto bridge company take some time, but the process has already started with xCurrent and Ripple's long ongoing discussion with banks and other financial institutions. 

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42 minutes ago, Edm22 said:

First off, thank you for all your time and effort. I may be off here, but isn't this an argument for an increase in XRP price/value, so that if XRP is say worth $100 per unit (just an example), much smaller amounts of XRP would be necessary for large TX's, hence leading to a much longer lifespan for XRP?

Yes, growing XRP value is one causation factor that could reduce the absolute XRP quantity need to support XRP's use as a bridge currency.

But I also convinced myself that once XRP became intrenched as a bridge currency, the need to spend XRP to keep it so will tend toward zero. Then any remaining XRP that Ripple holds can be used to encourage additional use cases. 

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19 minutes ago, UncleMikey said:

@BobWay when institutions use XRP as a bridge currency, will those transactions also flow through the current exchanges (i.e. coinbase) that appear to only be retail speculation at the moment, or will they be processed elsewhere?

When bridge payments flow through exchanges they can profit based on fees that charge to help deliver the payment. This is in addition to any other fees they charge the trader for his trade. In in the future, exchanges will be competing among themselves for this payment flow by adjusting the fees that they charge rather than the price of XRP on their particular exchange.

Arbitragers will assure that all exchanges have roughly the same price. Arbitragers profit on others mis-pricing, not based on any externally driven value.

So if you are a speculator in XRP's price, you don't need to worry too much where you trade. But certainly exchange will want the additional fee revenue and they will compete for the payment business. And note that was in Coinbase's original vision.

I have no knowledge of what Coinbase's current plans are however.

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13 minutes ago, kanaas said:

This brings me to another inside person you may know very well and who was leaning to a much more negative view on XRP. I'm talking about Vinnie Falco. By the end of his career @Ripple he even was extreme bearisch on XRP and sold all his holding before that famous run from 0.006 to 0.2 and later even to 3.

When someone is that negative he must have had a reason for that. Any idea from your side? Not to rant against him, because he seemed very talented and smart, but more like to understand his and yours view and how they differ.

I love Vinnie!  He couldn't be more awesome, he traded his XRP for BTC, then dig just fine when BTC went up along with XRP.  Last I talked to him he was very happy for the both of us. He retired from having to deal with other people's ******** (not a direct quote). And now gets to do what he wants. And he's been doing awesome things.

I'll answer what you really want to know as part of a larger story. I created a Chapter titled "Crossing the XRP desert" and linked your question there.

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20 minutes ago, Rey said:

Considering the contributions by Vinnie to the XRP ledger software this seems interesting indeed. David Schwartz mentioned the number of commits on Twitter last month.

The reason are interesting, but don't expect anything scandalous that will change your outlook going forward.

Hindsight is a very strange beast. 

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22 minutes ago, elias said:

When Ripple has been saying they were incentivizing market makers, is this the method they have been using?

Also, does anyone have a link to this patent?

Anything you have heard from the company in the past has likely been more situation specific. You need a lot of flexibility in bootstrapping a new network.

What I've posted is a tool for coherent growth. It is one of the arrows in Ripple's quiver in fighting to establish RippleNet as the dominant solution.

In the "Hi, I'm Bob!" forum someone posted a link.

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I didn't know "Wen Moon" was a definitive thing. I was just stealing a meme that I heard. I hope I used it in the correct context.

But I can't seem to open the tweet or image, I get a refusal by the twitter site.

If you would post the diagram so I can expand it, I'd love to read it.

Edited by BobWay
Didn't mean to quote the whole thing.
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