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BobWay

Answer: About the patent, Let's talk

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7 hours ago, josepi90 said:

Does ‘auto bridging’ fit it with this in some way ?

Yes, exactly that. Very good image reference.

autobridging-graphic.png

The goal of the algorithm is to have mostly green orders at the top of both sides of the Combined Order Book.

  • If purple orders execute to provide liquidity for payments, it does XRP and its holders no good at all.
  • If green orders execute to provide liquidity for payments, it makes XRP more liquid for everyone.

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26 minutes ago, BobWay said:

Yes, exactly that. Very good image reference.

autobridging-graphic.png

The goal of the algorithm is to have mostly green orders at the top of both sides of the Combined Order Book.

  • If purple orders execute to provide liquidity for payments, it does XRP and its holders no good at all.
  • If green orders execute to provide liquidity for payments, it makes XRP more liquid for everyone.

Thanks for this visualization @BobWay.  How do you see the adoption curve for market makers on the XRPL playing out?  Do you expect a slow, steady growth in market making activity, or a strong, relatively immediate uptick?

 

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29 minutes ago, Paradox said:

Thanks for this visualization @BobWay.  How do you see the adoption curve for market makers on the XRPL playing out?  Do you expect a slow, steady growth in market making activity, or a strong, relatively immediate uptick?

The need for market making is directly related to the need to send payments. So if I was looking to make markets, I'll follow every payment non-XRP-to-XRP payment and see where they are coming from and going too. Then I'd try to jump in the middle and turn a small profit on each.

Right now, there is little XRP Ledger traffic for non-XRP payments. But I'm hoping to convince people that should change in the near future. Hopefully, that Bitstamp news will help the process along.

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Posted (edited)

There is still a gap in general understanding of Trust Lines and Issuances on the XRPL -  the info is here, but it's not ideally formatted for education, and needs to be explained more accessibly.

https://developers.ripple.com/become-an-xrp-ledger-gateway.html

I will try and write a new blog post to help educate.

The new Bitstamp license as you say is a driver for this use. It important that people understand this feature, the IOV and XRPL is bigger than XRP alone.

j

Edited by josepi90

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Posted (edited)
On 4/2/2019 at 3:14 PM, BobWay said:

For those interested in learning more about "market making" or (Dealing) here is a classic reference worthy of your attention. You'll find the original paper linked there as well. (Here is a freely available version online, along with some other promising links.)

I'm by no means an expert on this, but you might want to become one. For the purposes of discussion, it is good to understand what Treynor calls the "inside spread" vs the "outside spread" in a given market. The first is the narrow spread a market maker is willing to show for a limited amount of funds. The second is the wider spread "value based investors" naturally show based on their expectations of price changes.

 

 

Is this an accurate representation ?

614967746_spreadincentive.thumb.png.16c2f53eb4b2f65c13db26b13335cfcc.png

Edited by josepi90

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13 hours ago, BobWay said:

Right now, there is little XRP Ledger traffic for non-XRP payments. But I'm hoping to convince people that should change in the near future. Hopefully, that Bitstamp news will help the process along

What's the reason there's so little XRP Ledger traffic for non-XRP payments? Are the simple user interfaces to do on-ledger trades missing? Unfortunately the Ripple Trade client, which provided a simple User Interface was abandoned. I mean the tech is there, but the ledger trade volume is only around 1m $.

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14 hours ago, josepi90 said:

Is this an accurate representation ?

So the incentive would have the effect of the market maker earning the purple spreads you have drawn. (wider spread = higher profit)

But the goal of the incentive is to allow the market maker to narrow the spread shown in the market (black dotted lines).

 

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4 hours ago, baggy23 said:

What's the reason there's so little XRP Ledger traffic for non-XRP payments? Are the simple user interfaces to do on-ledger trades missing? Unfortunately the Ripple Trade client, which provided a simple User Interface was abandoned. I mean the tech is there, but the ledger trade volume is only around 1m $.

With out really digging into the ledger, I'm pretty comfortable saying that there aren't a lot of non-XRP assets being "issued" on the XRPL at the moment.

And you are right, one of the main reasons for that was that Ripple discontinued the online Ripple Trade client. However, the final version of that client can still be built and run locally. The source code is here:  https://github.com/ripple/ripple-client-desktop

Rippex made a couple of bug fixes to that code, there version is available here: https://github.com/rippex/ripple-client-desktop---UNMAINTAINED

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10 hours ago, baggy23 said:

Thanks Bob. But I don't think the average user is digging around on Github.

They need a simple ready to execute solution.

Yes, but they don't need ME to provide that. That is what all of you are for.

Anyone can take that code, build it and deliver it as a simple downloadable XRP Ledger client. Then others can make it even better.

Or even better, grab one of the other full featured clients from the client thread. Underneath all the features of the XRP Ledger work the same, no matter what client you choose. The main point I'm making is that I don't expect Ripple to develop and release a branded XRP Ledger client. That task is up to the XRP Community.

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11 hours ago, BobWay said:

Or even better, grab one of the other full featured clients from the client thread. Underneath all the features of the XRP Ledger work the same, no matter what client you choose. The main point I'm making is that I don't expect Ripple to develop and release a branded XRP Ledger client. That task is up to the XRP Community.

I see 2 main issues with projects aiming at creating the killer wallet directly in XRPL

1- the need to ask the users to use their secret key puts a lot of pressure on security

2- to actually be really successful :), that would bring many users to create an XRP address in XRPL, at this moment it will show one of the weakness of the XRPL, the lack of scalability on the number of XRP addresses manageable by the network. If a consumer product brings a few million people on the network, wouldn't that potentially kill it?

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Posted (edited)
On ‎3‎/‎28‎/‎2019 at 6:25 PM, 7Bs said:

Fresh water is out by 2030-2039? Desalination is too costly. If XRP becomes the new water, the price of XRP/or water as a commodity doesn't matter. XRP will be able to find new ways that make desalination affordable. It's a resource.

Both water and XRP are finite resources. Has there been any research in using XRP to facilitate/price water contracts, i.e. through a RippleWorks initiative? XRP would seem to be usable for phone top ups with regard to water purchases and assist in desalination electricity cost challenges. I was reading this article: https://www.forbes.com/sites/quora/2017/09/07/why-desalination-isnt-the-answer-to-the-worlds-water-problems/#12b26a2d4737 and it would seem to be an issue of 'liquidity' corridors or locational cost especially for farmers. And would there be potential solutions with an interoperable, global water energy network of value where cost was loaned out through a sort of MM pathfinding? 

Just saw this too: https://www.forbes.com/sites/rachelwolfson/2019/02/08/ibm-pilots-blockchain-and-iot-sensor-solution-to-track-sustainable-groundwater-usage-in-california

Edited by Guest
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