Answer: About the patent, Let's talk

[BobWay]

 

[BobWay]

Hi @BobWay. First of all thank you for all your efforts and the time spent explaining all of this to us.

I have read and understood at a very high level the two patents that you mentioned. Without going into too much detail that may be distracting and feed speculative hypothesis and specially trying to economize your time, I would like to ask you how would the 'conversion factor' be effectively determined in the Resource path monitoring patent??

Thank you for waiting patiently @Fberaza I know the writing is obscure I appreciate you reading it so deeply.

The conversion factor is set not actually set by the algorithm at all. That is why it says the converter and use "any suitable" conversion factor. Isn't that cool the patented invention doesn't manage conversion factors at all!

 

[BobWay]

I know that was a bit anti-climactic but I guess you didn't trust me when I wrote:

On 3/12/2019 at 10:08 AM, BobWay said:

The mechanism that we patented:

1. Is completely non-biased. It doesn't care which trader facilitated a payment.
2. It works without enforcing or attempting to enforce price stability. Each market follows standard supply/demand dynamics.
3. It only subsidizes risk on the trader supplied funds that actually facilitate bridge payments.
4. Is scrupulously efficient in deploying XRP. This is what prevents it from putting a downward pressure on price.

Feel free to ask more questions if you are confused.

Keep in mind, this is not a financial patent. It is useful in creating pathways for converting any type of resource to any other type of resource. If your resource was water and you kept it in a pool in your yard, you might get sick of swimming and want to convert that to a pool filled with dirt. You and do that at any potential conversion factor that you find suitable.

[kanaas]

I know that was a bit anti-climactic but I guess you didn't trust me when I wrote:
Feel free to ask more questions if you are confused.
Keep in mind, this is not a financial patent. It is useful in creating pathways for converting any type of resource to any other type of resource. If your resource was water and you kept it in a pool in your yard, you might get sick of swimming and want to convert that to a pool filled with dirt. You and do that at any potential conversion factor that you find suitable.

Do I understand it correct that it basically is a solution to maintain a trading spread for MMs that let them cash in for each passing payment?

[BobWay]

Of course the patent works for any resource system. But if you implied the invention to money resources then it would work as you explain.

In your application of the patent, it would maximize the profit for the MM, while minimizing the incentive transfer to market makers. 

Edited March 17, 2019 by BobWay

[Guest]

There have been many discussions on Xrapid effect on price.  Bob do you think the patented methodology is usable in the XRapid situation?  

If so, does it therefore imply that the use of Xrapid in combination with this methodology would have an upward pressure on price greater than the downward pressure of the sale side of XRapid? 

[BobWay]

Yes, it is deployable in all markets including xRapids'.  In fact the small value, high volume payments are optimal for bootstrapping a bridge currency into a new network. Those payments maximize the ROI for market makers, by minimizing their deployed capital. Payment volume being equal. High value corridors require more capital. Low value corridors less capital.  ROI is a function of (profit / capital). 

High ROI encourages competition from new market makers which IS consumptive of XRP. Increasing competition in every corridor at once could be quite consumptive of XRP.

[Guest]

1 hour ago, BobWay said:

High ROI encourages competition from new market makers which IS consumptive of XRP. Increasing competition in every corridor at once could be quite consumptive of XRP.

And if that happened then as you indicate those new market makers would need XRP.  But we know that Ripple have a billion at any one time at least available for OTC.  If they sold to MM’s OTC to cover that demand then that wouldn’t affect price directly.

Do you think there is any chance Ripple might decide to not sell OTC at some point?  Or on a different but related note...  do you think it’s likely in any near term,  or medium term,   that the one billion per month would not cover OTC demand?

Thanks very much for your thoughts so far...  please be aware we are all grateful and that you don’t owe us anything... and we don’t want you in trouble...

[elias]

Has anyone described this patent in English yet? The patent itself is difficult to understand.

Edited March 17, 2019 by elias

[BobWay]

I'll give you a hint. It might make a good forum project.

You need to copy the text of the patent into your favorite editor for a "search" and "replace" marathon. Remember that patents are written to be a general as possible. This ones like some others that Ripple filed can be used in many different fields. The finance industry is just one possible field. So if you want a version of the patent that is easier to read for finance and money usage. You need to translate it into those terms?

So make a translation table. That's just a list of, "general term" = "financial term"  phrase pairs.

So for example, what is a generalized "resource"?  When you consider something a resource it means it is something you might need, or maybe something you value.  And what might a "resource pool" be?  Well of course that is just a bunch of resources that are all of the same type and interchangeable. So think of what those terms might translate to in a financial or payment system.

Let the puzzling begin!

Feel free to collaborate here if you think it will help! I'll watch as you go. Maybe I'll even drop hints.

Edited March 18, 2019 by BobWay

[Guest]

11 minutes ago, BobWay said:

copy the text of the patent into you favorite editor

You guys do know that having a “favourite editor” is a very bad sign right?    

[Guest]

On 3/17/2019 at 8:01 PM, BobWay said:

Feel free to collaborate here if you think it will help! I'll watch as you go. Maybe I'll even drop hints.

please can we get more hints?! pretty please!

[BobWay]

No more public hints. I don't want to give unnecessary advantage to XRP competitors. Let them read the patent for themselves.

But feel free to talk quietly amongst yourselves. I know some in the forum have a reasonable grasp of the goals and potential mechanisms.

[SquaryBone]

20 hours ago, BobWay said:

No more public hints. I don't want to give unnecessary advantage to XRP competitors. Let them read the patent for themselves.

But feel free to talk quietly amongst yourselves. I know some in the forum have a reasonable grasp of the goals and potential mechanisms.

So won't competitors be able to read it anyway? Other projects could pass it to people which are more knowledgeable on patents (because they file themseves). So is the better approach not to have mentioned it in the first place?

[BobWay]

14 hours ago, SquaryBone said:

So won't competitors be able to read it anyway? Other projects could pass it to people which are more knowledgeable on patents (because they file themseves). So is the better approach not to have mentioned it in the first place?

Yeah, I'm sure a some people wish I wouldn't have mentioned it. But, I talked a little about why I did mentioned it in this thread.  I'm going to copy my response here because it seems better in this thread than in General.

---

The primary reason for talking about "my mechanism" is to convince everyone that "at least one mechanism exists" that could drive XRP into its prime position as a bridge currency. Now lots of people in the cryptocurrency space presume that is true. They also presume that their favorite cryptocurrency is going to become a bridge just because it is awesome and had (X special feature) that other currencies don't have.

But people that study the economics of the ecosystem are rightfully skeptical that ANY cryptocurrency could actually become a de facto bridge currency. If you try to write down the sequence of steps needed for that to happen, there are almost always significant logical or conceptual gaps in most cryptocurrency fan theories.

So what I set out to determine was, "Is there really a plausible path to make that happen?"  And also, "What are the necessary requirements and 'forces' needed to actually make that happen." That is what I documented inside the company. That was also what we patented and I assigned to Ripple. (I've discussed this elsewhere on this site so I won't rehash the back story.) The company has hinted at these techniques, but has not detailed any particular strategy that they will employ. (At least based on what I've read in their press releases and public statements.)

I think I've discovered "the last algorithm" that RippleNet needs to drive XRP into the bridge currency position. And also to maintain it there in perpetuity. But that algorithm won't necessarily be the first one employed to help XRP along on that path. There are other ad-hoc ways that might be simpler to implement and more effective for the initial corridors that companies want to deploy.

Now keep in mind, saying "I discovered the last algorithm" isn't very humble. Also note that once you find "a way" of doing something thought impossible, it becomes much, much easier to find a second even better way. That was the lesson of bitcoin's consensus algorithm. No one could find a good consensus algorithm because no one thought it could be done. So no one thought they should bother looking. Once the bitcoin algorithm was found, then boom! The ripple algorithm, a re-emergence of other known 'academic' algorithms, proof of stake, proof of space...  Expect the innovation to continue.

So, there is no guarantee that Ripple will ever deploy my exact algorithm. They may have even better ideas in mind. Ones that I'm not privy to. But what I do know for sure, is that most of the other cryptocurrency teams don't have the resources they need to drive their currency into the bridge position. Nor do they even understand the economics of the ecosystem well enough to know why that is true.

---

I am 100% certain you will hear skeptics contend that, "XRP will never become a bridge currency, because...". They will reference math you don't understand and they will sound very convincing. Some will also try and convince you that the same is true for ALL cryptocurrencies and that XRP is no different. I just thought the people here in this forum deserved enough information to know better. It is you that are going to be needed with the firehose when these flame wars crop up.

And yes, eventually other teams will realize that same issues Ripple realized four years ago. But I don't need to make a huge effort to speed them along in their understanding. So talking about it was a trade off. But I hope a trade off that was helpful to those on this site.

Edited March 25, 2019 by BobWay