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Sending BTC using XRP ledger


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So many questions....

1. Regarding tokenized assets on the Ripple ledger (i.e Bitcoin) - I understand you must go through a trusted gateway to exchange tokenized assets (other than XRP). Are all tokenized assets on the XRPL backed 100% or 1:1 with the asset they are representing (in this case, Bitcoin)?

2. Around the 4:30 mark, he talks about Gatehub tokenizing the BTC in a usable format for the XRP ledger: Would/does Gatehub use the same "tokenized Bitcoin" that every other gateway on the XRPL uses?

2b. Around the 4:50 mark, he says he is able to then send the tokenized BTC to his Toast wallet (XRP) address. Is this actually an IOU issued to the Toast wallet address, or is the actual tokenized BTC being sent to the Toast wallet? (You can't send an asset issued on the XRPL to major exchanges at this time, unless it is XRP or the exchange is a gateway to the XRPL..)


3. Around 5:10, he says that he can then send the BTC token in his Toast wallet to another Ripple wallet holder, where THEY can send it to someone else, or send it back to Gatehub where they can redeem that BTC or change it into cash.
How is it possible for "that someone else" to send that BTC to someone else if it is an IOU (that originally required a trustline to be set)? Isn't "that someone else" limited to either XRPL gateways or XRP wallets in terms of who they can then send that BTC to?


4. Around 6:50, he talks about larger (more reputable) FI's becoming Gateways to offer BTC on the Ripple ledger (them rolling out a payment network so people can use BTC in a reasonable manner). If multiple FI's issue their own redeemable tokens in exchange for actual real-world versions of those tokens, does this not effectively (potentially) double the supply of the actual token it is representing?
 

If all of these Gateways agree to use the same tokenized version of BTC on the Ripple ledger, where is the value of that new token actually coming from? Does each gateway need to hold in reserve an accurate amount of BTC in relation to the tokenized version they are issuing/sending IOU's for?

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27 minutes ago, XRPboi said:

1. Regarding tokenized assets on the Ripple ledger (i.e Bitcoin) - I understand you must go through a trusted gateway to exchange tokenized assets (other than XRP). Are all tokenized assets on the XRPL backed 100% or 1:1 with the asset they are representing (in this case, Bitcoin)?

Who knows...? The implication is that they are, and if the issuing gateway is trustworthy then they should be. If the IOU can be sold for market value then that means that the market as a whole trusts that the issuer holds the asset 1:1.

29 minutes ago, XRPboi said:

2. Around the 4:30 mark, he talks about Gatehub tokenizing the BTC in a usable format for the XRP ledger: Would/does Gatehub use the same "tokenized Bitcoin" that every other gateway on the XRPL uses?

No, Gatehub's Bitcoin will always be linked to Gatehub, and is distinct from any other. You can create your own BTC IOU of you want, but no-one will buy it from you because they can tell it's not backed by any of the trusted gateways.

30 minutes ago, XRPboi said:

2b. Around the 4:50 mark, he says he is able to then send the tokenized BTC to his Toast wallet (XRP) address. Is this actually an IOU issued to the Toast wallet address, or is the actual tokenized BTC being sent to the Toast wallet? (You can't send an asset issued on the XRPL to major exchanges at this time, unless it is XRP or the exchange is a gateway to the XRPL..)

When you send a BTC IOU to another address, two things happen on the ledger: 1) The amount of BTC that the gateway owes you is decreased, and 2) the amount of BTC that the gateway owes the recipient is increased. The relationship is always between the issuer and the "holder". So the IOU is now issued to the Toast wallet in your example.

32 minutes ago, XRPboi said:

3. Around 5:10, he says that he can then send the BTC token in his Toast wallet to another Ripple wallet holder, where THEY can send it to someone else, or send it back to Gatehub where they can redeem that BTC or change it into cash.
How is it possible for "that someone else" to send that BTC to someone else if it is an IOU (that originally required a trustline to be set)? Isn't "that someone else" limited to either XRPL gateways or XRP wallets in terms of who they can then send that BTC to?

Once you send an IOU to someone else, you are no longer owed the value of it, and they are. Doesn't matter who redeems it (subject to Ts and Cs), the gateway will pay whoever redeems it. Whoever the IOU is passed to must have set a trustline or they can't receive the IOU. But yes, only XRP wallets, everything has to stay on the ledger.

33 minutes ago, XRPboi said:

4. Around 6:50, he talks about larger (more reputable) FI's becoming Gateways to offer BTC on the Ripple ledger (them rolling out a payment network so people can use BTC in a reasonable manner). If multiple FI's issue their own redeemable tokens in exchange for actual real-world versions of those tokens, does this not effectively (potentially) double the supply of the actual token it is representing?

No, they should only issue exactly the amount that they have been sent by their customers (minus fees that they may choose to impose). The FIs should not be using the BTC that they hold on behalf of their customers, so it shouldn't be in circulation, effectively. In practice, i don't know.

36 minutes ago, XRPboi said:

If all of these Gateways agree to use the same tokenized version of BTC on the Ripple ledger, where is the value of that new token actually coming from? Does each gateway need to hold in reserve an accurate amount of BTC in relation to the tokenized version they are issuing/sending IOU's for?

Yes, ideally.

 

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1 hour ago, XRPboi said:

Can't help but find it peculiar that this video specifically mentions buying coffee with Bitcoin.. and now he says this.

 

Could be nothing, of course. But things have been different in here as of recently...

The everlasting Lightning network is the supposed layer 2 to save the BTC, conveniently forgetting that it completely centralizes it.

While they are working hard on LN there always has been such a network for them to use and speed up BTC layer 2 transactions. The XRPL.

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You can buy and sell BTC on DEX. You just need  to add a trustline with a wallet, which support trading on DEX. Than you can buy BTC. You can send BTC within seconds to an other xrp account. Than you can sell BTC for XRP. This all is possible without registration on an public exchange.
If you want to cash out, you only need to send the XRP to any exchange which has xrp.

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