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XRPboi

Question on XRP Payment Process

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Regarding the image below:

- Once there are more exchanges and wallets built on top of the XRPL, won't that eventually eliminate the need to exchange currencies on a public, centralized exchange? (As done twice in the example)

- How/where does (or will) ILP tie into the example below? 

DtF5Q_yWkAEiaPG.jpeg

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You could eliminate one of the exchanges if the recipient was willing to accept xrp. In that case you could eliminate an exchange all together or only have on exchange in which the recipient turns in xrp for fiat.

I think the diagram is taking into consideration that two non-trusting entities want to exchange money and are in different countries. In that case neither sender nor recipient is trusting of the other and only wants to deal in fiat, as a result the risk for the transfer is within the exchange.

I think Xvia which is business to business is what you are talking about. 

Also if you had one exchange that held two separate currencies then it would still be the same nastro/vastro issue. If exchanges trade xrp from one to another and the liquidity exists within each individual nation then you get rid of having to hold a foreign currency.

I hope that helps and if I am wrong then please correct it.

Also I thought i sent this over hour ago, but I didn't so sorry if this is a repeat and a waste of time.

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I believe once the XRP Ledger gets more adoption the Orders (XRP calls them Offers) will be posted right on the XRP Ledger.   So User 1 will create an Offer to Sell 100 GBP for Y amount of XRP.  User 2 will create an Offer to exchange 100 USD for 80 GBP.   I think the XRP algorithm is then smart enough to Match these two Offers (Orders) in the next Ledger Version leaving User 1 with 20 GBP left in his initial Offer.

Still learning the XRP ledger and would be interested if my understanding is correct.

Edited by Picard78

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I could be wrong but believe that this XRapid functionality is a stopgap intermediary suitable for the present circumstances.  So these diagrams will evolve over time as circumstances change.

I don’t know if it ever will come to pass,  but I believe the ultimate vision lurking in the Founders hearts is that the built-in XRPLedger DEX (decentralised peer to peer exchange) will be the ultimate exchange mechanism utilised by ILP to pay values in streaming micropayments between entities irrespective of currency or location.

That’s a possible and sensible endstate but whether we ever get there depends on how many spanners are thrown in the works by Murphy and his mates.

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9 minutes ago, Tinyaccount said:

I could be wrong but believe that this XRapid functionality is a stopgap intermediary suitable for the present circumstances.  So these diagrams will evolve over time as circumstances change.

I don’t know if it ever will come to pass,  but I believe the ultimate vision lurking in the Founders hearts is that the built-in XRPLedger DEX (decentralised peer to peer exchange) will be the ultimate exchange mechanism utilised by ILP to pay values in streaming micropayments between entities irrespective of currency or location.

That’s a possible and sensible endstate but whether we ever get there depends on how many spanners are thrown in the works by Murphy and his mates.

I think XRapid was not designed as a stop gap, but I agree with you that ultimately it will be absorbed into something much larger and more sophisticated.  Streaming of micropayments came out of digital currencies like steaming videos came out of linking personal computers with text and email; unforeseen progressions that look obvious after they are invented,  but were unimaginable before they are conceived.

In the 20 months I have been following XRP the concept of the internet of value has changed radically in front of our eyes and is now exploding in all directions. 

Edited by Julian_Williams

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Ripple at least doesn't seem interested in promoting the XRPL distributed exchange. I don't think it's clear why.

There's very little liquidity on there these days. It's been hung out to dry.

Why wouldn't people use the DEX, if it had liquidity?

 

Edited by elias

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32 minutes ago, elias said:

Ripple at least doesn't seem interested in promoting the XRPL distributed exchange. I don't think it's clear why.

There's very little liquidity on there these days. It's been hung out to dry.

Why wouldn't people use the DEX, if it had liquidity?

 

I agree with you.  I think the reason is hinted at when Ripple say that Banks and FI’s are unwilling to run regulatory risk.  In a DEX there is no KYC or AML etc.

So if the regulatory framework gets clarified,  and if that KYC etc was somehow implemented (perhaps by resurrecting the Gateway concept),  there might be a way towards the DEX being part of the IoV.

If that was done the liquidity would migrate and be available.  

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41 minutes ago, Julian_Williams said:

In the 20 months I have been following XRP the concept of the internet of value has changed radically in front of our eyes and is now exploding in all directions. 

We differ on this point.  With much respect I would say that I don’t think it’s changed at all...   the concept remains the same.

Buying MGI was a surprise but it’s clearly part of kickstarting XRP adoption and so is on track towards the IoV.  

XPring was also a surprise but again is a way to kickstart the necessary usage (and perhaps a distribution aid as well). 

I thinkRipple have been consistently and clearly moving towards the IoV. 

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If I'm not mistaken Chris Larsen spoke a lot of IOV while he was CEO of Ripple. I think the above arguments are valid as a long term goal considering micropayments, streaming, and so on. It seems that Ripple itself is staying focused on x-border payments, while Xspring acts as subsidiaries for implementing and exploring options within IOV.

It has been stated Banks are unwilling to use digital assets as long as there is not regulatory clarity. This is somewhat ironic since the majority of USD is digital. If liquidity is needed to drive IOV then X-border payment and settlement may provide the liquidity needed for IOV.

In the end we do not know what will stick. Something will eventually and as long as it isn't defeat then xrp will have value.

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6 hours ago, elias said:

Ripple at least doesn't seem interested in promoting the XRPL distributed exchange. I don't think it's clear why.

There's very little liquidity on there these days. It's been hung out to dry.

Why wouldn't people use the DEX, if it had liquidity?

 

Uh...Just 5 days ago....

 

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15 hours ago, Tinyaccount said:

I agree with you.  I think the reason is hinted at when Ripple say that Banks and FI’s are unwilling to run regulatory risk.  In a DEX there is no KYC or AML etc.

So if the regulatory framework gets clarified,  and if that KYC etc was somehow implemented (perhaps by resurrecting the Gateway concept),  there might be a way towards the DEX being part of the IoV.

If that was done the liquidity would migrate and be available.  

So what exactly are "Preferred xRpaid Exchanges?" I assumed these were exchanges that have either went through the security tests set by Ripple and integrated their technology to connect with RippleNet, OR, exchanges that are simply built on or connected directly to the XRPL.

Brad and Chris have described AML/KYC not being an issue on the XRPL because these are addressed at the Application layer (the exchanges/gateways) that connect to or sit on top of the XRPL. Which seems to be ultimately true, aside from unpopular client-side wallets like The Word Exchange.

I am really interested in learning how this all actually works. Because the way I see it, if XRP adoption picks up actual adoption and usage among banks and FI's, then it is inevitable that they'll reach a point where nearly every partner bank will be within reach (or hops) on the network, and the only reason to convert back to a local currency would be if a customer needs it. As Ripplenet grows, it will be dramatically less advantageous for banks and FI's to hold any national currency over XRP. 

When products like Xumm and other P2P wallets built on the XRPL come out and gain popularity, won't these provide the ongoing and increased liquidity needed (on the XRPL) to eliminate most of the need for public exchanges used in the graphic of the original post above? Lastly, will wallets like Xumm require extensive KYC/AML details upon download?

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27 minutes ago, XRPboi said:

As Ripplenet grows, it will be dramatically less advantageous for banks and FI's to hold any national currency over XRP.

I would say for invidivduals as well.. if only to remove the risk of inflation as digital currencies like XRP has a fixed supply.. but it remains to be seen whether the governments of the day will allow that to happen.

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12 minutes ago, Coolio said:

I think for KYC/AML authorized trust lines are used. KYC is done by gateway.

Can you explain how exactly this may look for the end user of a wallet like Xumm? I understand how Gateways collect user information upon account creation.

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26 minutes ago, richxrp said:

I would say for invidivduals as well.. if only to remove the risk of inflation as digital currencies like XRP has a fixed supply.. but it remains to be seen whether the governments of the day will allow that to happen.

Check out the content in this thread when you have time:
 


I'm not sure how how many years such a situation may take to actually play out, but I have no doubt that it is highly likely in the event that large banks and companies begin openly using XRP. The only reason I still hold more fiat than crypto is because XRP is very volatile; I have no idea what value it might stabilize at later on, and there are major penalties for selling/using it where I am located (i.e taxes).

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