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Althair

how to move money from hosted wallet to ripple wallet

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On 08/04/2017 at 10:37 PM, cmbartley said:

XRP has no counterparty risk as a native asset (unless you hold it on an exchange). Fiat IOUs will always have a counterparty regardless of the protocol being used. XRP cannot be Rippled from one account to another. This is because rippling only occurs through trust lines and because XRP is native it does require a trustline. Every other asset on RCL has a counterparty. In this case, gatehub and snapswap were the EUR counterparties and this bug demonstrated counterparty risk quite nicely. In the course of rippling the class of your asset was unchanged (EUR) but the counterparty changed from Gatehub -> Snapswap. Your EUR therefore went from redeemable to worthless because snapswap is a defunct gateway. As such, you always want to make sure you trust your counterparty. You'll notice that euros on RCL are worth more or less depending on the gateway you're looking at partly because some gateways are more trusted than others therefore their IOUs will command a premium.

Makes sense, thanks @cmbartley Yet, I believe my point remains valid: moving the counterparty risk from a currency to a gateway is not equivalent to eliminating counterparty risk.

Two ideas:

1.Ideally (maybe I am wrong), the concept of wallets should be loosen up, so that I can trade Snapswap EUR into anything else, and get real money back. In fact, money cannot be destroyed: when I moved 1300 EUR to RockTrading, I gave an order to my bank to move them there. If someone ripples them to Snapswap via rippling, that does not destroy them: they are still there and it just means that Snapswap should pay them back. I understand I would need to star a legal action vs Snapswap to recoup my money or equivalent assets (maybe their chair, or keyboard) as collateral of my cash...

2. Alternatively, would there be a way that a list of broken gateways is maintained, and Ripple or the other gateways block the bankrupt gateway, so that no one can send them money anymore, once they are declared bankrupt or unsafe, but only withdraw (maybe my idea is incorrect, so bear with me)?

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