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TaylorWarden

Testing The Waters for a New Gateway

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Ever since I rejoined the forums, I sometimes get private messages in regards to forming a new CAD gateway.  In this thread, I am asking the community to provide some suggestions and feedback to determine if a new gateway is feasible.  I was asked if I would perhaps perform a crowd funding round from the XRPchat community to bootstrap a new Gateway, which I will touch on later.

The first thing that I would need to do is set up a new issuer, requiring about 500 XRP to cover OwnerCount objects in the ledger from trust-lines and to activate new ripple accounts who are coming to the Gateway in addition to providing some small amount of XRP to the market making account to cover the major order-books so that payments can find paths.

Second, I already have a domain name registered until 2023 and I have the ability to host a website via shared hosting on the monthly basis but this means I will not be able to host an instance of rippled as I will not have enough resources to run it on the package I have available.

Third, I would require capital to purchase silver for remittance over the RCL, as all of my gateways in the past have been focused on cryptos, fiat, and precious metals with precious metals being the focal asset class offering for all of my Ripple Gateways to date.  This would be about another 600$CAD (or more) so that I could purchase a tube of silver rounds for remittance.  

As for crowd funding to jump-start a new Gateway, if the official forums were still up, I could point all of you to the postings in which I mention the crowd funding rounds that I already completed in the past via the NXT blockchain.  The major problem with a crowd funding round is how do I provide value to the backers of the crowd fund?  At first the NXT asset was providing 45% of the profits derived from the gateway calculated in NXT then shared to the XAGATE asset holders on that blockchain using their pay dividends function but I was still the majority share holder of the assets so I was receiving 51% of the dividends paid as a kickback for not selling my company's equity so easily (I forget the price per asset but it was set pretty low).

With all of this being said and done, I invite you to take a look at https://streetsofsilver.website to view the fee schedule this Ripple Gateway will launch with.  Please note that USD withdrawals will be done via wire transfer and that is why the withdrawal fee is set so high; If I am able to find a way to reduce this overhead I will be able to reduce the fee drastically when/if this Gateway launches.

That is all for now folks, please, provide me with your suggestions and feedback as to how I may be able to provide some value to the interested parties who may want to crowd-fund this project!

EDIT:  Someone pointed out via PM that the deposit fee for Ethereum on the site was listed as 0.1 ETH per deposit which is a preposterous amount, the actual deposit fee is 0.01 ETH, that was a typo.

Edited by TaylorWarden
Update OP

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Wasn't Ripple (trying to) move away from the usage of gateways or did I misinterpret that?

What sizing of node would you need for getting this operational?

Are any further things needed (legal, ...)? Known hurdles?

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I just so happen to have built a gateway from the ground up.

An asp.net web portal for kyc, with ability to create and sign ripple transactions or forward them to a local desktop app for signing locally Control Your Own Keys.

I'm now working on a mobile app which will also integrate with the webserver and sign tx's.  Next focus will be payment requests and then further projects will be plugins for merchants. All routed through the webserver and using xrpl.

The desktop app has market making tools. ICO tools. Dividend tools. 

The webserver is mobile and tablet friendly, has animations, will have a trollbox eventually. Has support ticket system, identity tickets, proof of address tickets

The desktop app is very likely the fastest wallet in crypto. 0.2 seconds per transaction. Fully and semi automatic trading. There is a instant chat box for any trading pair. It can manage multiple wallets at the same time. You could be running a bot on multiple accounts and still accept payment request or trade. And as I stated earlier it can be paired with the webserver for signing transactions and payment requests. 

The mobile app is in early stages, will be targeting android, ios and windows. All these tools are multiplatform.

I wish to partnership with you. I already know who you are and I already have your email address if you'd like me to email you. 

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13 minutes ago, jargoman said:

I wish to partnership with you. I already know who you are

I really like the idea of a silver/gold backed token on the Ripple ledger. The big guys are on to this as well. The royal mint of england planned to issue a gold backed token on the blockchain. The government of England blocked the project in the last minute. Not shure how big the chances of success are for us small guys, but since no one really succeeded yet with a precious metal token on the blockchain it could be worth a try. This project is too big for just one person, collaboration is the key to success. If you guys pull this up I am considering to participate in the seed invest.

18 hours ago, TaylorWarden said:

The major problem with a crowd funding round is how do I provide value to the backers of the crowd fund?  At first the NXT asset was providing 45% of the profits derived from the gateway calculated in NXT then shared to the XAGATE asset holders on that blockchain using their pay dividends function but I was still the majority share holder of the assets so I was receiving 51% of the dividends paid as a kickback for not selling my company's equity so easily (I forget the price per asset but it was set pretty low).

What was the reason to do this with the NXT blockchain?

Couldn't you issue your company shares on the RCL and pay dividends on them?

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2 hours ago, jargoman said:

I wish to partnership with you. I already know who you are and I already have your email address if you'd like me to email you. 

I am very interested in learning more about what you have built and I would be pleased to either help you form your own gateway or to go into a partnership by selling you a minority amount of shares of 8569541 CANADA INC.  Please do contact me via PM or email my gmail account and we can get down to talking business :)

2 hours ago, baggy23 said:

I really like the idea of a silver/gold backed token on the Ripple ledger. The big guys are on to this as well. The royal mint of england planned to issue a gold backed token on the blockchain. The government of England blocked the project in the last minute. Not shure how big the chances of success are for us small guys, but since no one really succeeded yet with a precious metal token on the blockchain it could be worth a try. This project is too big for just one person, collaboration is the key to success. If you guys pull this up I am considering to participate in the seed invest.

What was the reason to do this with the NXT blockchain?

Couldn't you issue your company shares on the RCL and pay dividends on them?

The XRPL allows you to "email" silver and gold to other people across borders which is why I got started in Ripple in the first place.  Silver and Gold backed tokens will be the future in my honest opinion as they are stable investments which have historical value.  

The reason why I used the NXT blockchain was because there was no pay dividend function available on the Ripple Consensus Ledger hence the profit sharing asset program was not issued as Ripple IOUs.  Since the creation of my first gateway, community developers have created functions to payout dividends to people on the RCL and issuing Ripple IOUs which yield dividends are now feasible.

5 hours ago, SquaryBone said:

Wasn't Ripple (trying to) move away from the usage of gateways or did I misinterpret that?

What sizing of node would you need for getting this operational?

Are any further things needed (legal, ...)? Known hurdles?

Ripple has been moving away from the small business Ripple Gateway scheme since around 2015/2016 when Ripple Labs reformed into Ripple Inc.

A dedicated server with 16-32GB of RAM, 120GB SSD, and quad core processor is what is needed to operate a rippled validator.

Legal hurdles would include selling company shares to interested parties (around 700-800$CAD to get those documents created) and the other hurdle is to update with FINTRAC my Money Services Business profile with them as it still states that xagate.com is the operating website address at which my MSB can be found at.  In addition to this, MSBs must now declare if they are operating with virtual currencies and must update with information with FINTRAC by Summer 2020.

I am very glad to see a positive response from the community.  Please do continue to discuss with me your suggestions about this upcoming project and provide your feedback for this project for 2020!

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14 hours ago, TaylorWarden said:

I am very interested in learning more about what you have built and I would be pleased to either help you form your own gateway or to go into a partnership by selling you a minority amount of shares of 8569541 CANADA INC.  Please do contact me via PM or email my gmail account and we can get down to talking business :)

 

I'd purchase a minority share of the company which holds the msb license. You would be the director of operations and I'd be chief technical officer. I have the funds needed to file paperwork. 

I definitely need help. I need someone with the licensing. Who has experience and who can manage the business. It makes sense for each person to do the job that they are best suited for. 

I need help with front end development. I found a developer who has shown willingness to help me with the mobile app. He's a javascript react developer. 

Also need someone else to do a security audit. No one in particular comes to mind. Cough... Cough... Sukrim 

The only stipulation I have is to be inclusive rather than competitive. I have another individual with a license who also wants an exchange built. One exchange can have multiple gateways.  He's situated on the other side of the world. You are interested in metals. He is interested in fiat and I'm interested in digital assets. He may have backed out on me. Either way. A market isn't a market without diverse assets and different issuers.

Also I plan on placing links to the blogs, vlogs, tools ect built by the community. Even those of competing wallets. A protocol isn't decentralized without a diversity of software.

Lastly I prefer interoperability. Would be cool going to a grocery store and paying with any asset I want. Or making a bot that automatically purchased an item when it earned enough revenue to pay for it. 

I'm interested in any deal that is fair. With equal consideration and/or in proportion to money or time invested. 

I definitely will be contacting you. I'm doing some Christmas shopping right now. Otherwise I can be found on here checking the news while I code and run my bot. 

Edited by jargoman
minor correction

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9 hours ago, jargoman said:

I'd purchase a minority share of the company which holds the msb license. You would be the director of operations and I'd be chief technical officer. I have the funds needed to file paperwork. 

I definitely need help. I need someone with the licensing. Who has experience and who can manage the business. It makes sense for each person to do the job that they are best suited for. 

I need help with front end development. I found a developer who has shown willingness to help me with the mobile app. He's a javascript react developer. 

Also need someone else to do a security audit. No one in particular comes to mind. Cough... Cough... Sukrim 

The only stipulation I have is to be inclusive rather than competitive. I have another individual with a license who also wants an exchange built. One exchange can have multiple gateways.  He's situated on the other side of the world. You are interested in metals. He is interested in fiat and I'm interested in digital assets. He may have backed out on me. Either way. A market isn't a market without diverse assets and different issuers.

Also I plan on placing links to the blogs, vlogs, tools ect built by the community. Even those of competing wallets. A protocol isn't decentralized without a diversity of software.

Lastly I prefer interoperability. Would be cool going to a grocery store and paying with any asset I want. Or making a bot that automatically purchased an item when it earned enough revenue to pay for it. 

I'm interested in any deal that is fair. With equal consideration and/or in proportion to money or time invested. 

I definitely will be contacting you. I'm doing some Christmas shopping right now. Otherwise I can be found on here checking the news while I code and run my bot. 

I am sure that the MSB license is transferable but if not then we will need to register a new one with FINTRAC.  I have no problems with you holding the license.  I would prefer to be director of operations and I can assist with some front end development if needed.  I have done some back-end work before but I can leave that to you and your mobile app dev.  

As for the security audit, I second you in your coughing fit, I'd hire Sukrim to ensure everything is kosher. 

I operated XAGATE with multiple issuers so I have no qualms with being inclusive (if your market maker hasn't backed out).  

I would want to assist with the list of developer and user resources, I have written some stuff besides the QuickGatewayKit that helps out Gateways, such as this package that displays balances and obligations of a gateway.

I am sure that we will be able to strike up some sort of deal that can be equally beneficial to all parties involved.   Please do write me a PM with your email and we can perhaps get into a google hangout or do a skype call sometime to discuss this further.

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How do you think this will succeed? Most of the Gateways were not able to be sustainable and died after a few years.

Also if you check gateways  that offer metals e.g GatehubFifth,  the volume is pretty much zero. Which means there is not really any demand for this.

And i cant imagine why customers will chose a new gateway with horrendous fees over other competitors. So whats your businessplan exactly?

 

Edited by superboon
typo

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2 minutes ago, superboon said:

how do you think this will succeed? Most of the gateways were not able to be sustainable and died after a few years.

Also if you check some gateways that offer metals e.g GatehubFifth. the volume is pretty much zero. which means there is not really any demand for this.

And i cant imagine how anyone  will chose a new gateway with with horrendous fees over all the other competitors. So whats your businessplan exactly?

 

gateways is just like exchanges, most exchanges also died after a few years. 

 

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2 minutes ago, yxxyun said:

gateways is just like exchanges, most exchanges also died after a few years. 

 

Exchanges tend to do well. The majority of them are NOT control your own keys and they get hacked. Or they don't have the licensing. The failed gateways had no ui and no clear instructions how to trade on the XRPL

I prefer the xrpl to any other exchange. It's fast, secure and no third party risk on xrp. Plus ripple partnerships every other day ensure that someone will be using this protocol in the future. There are zero canadian dollar issuers on the ledger. The market is wide open. 

Just as it would mean the flip of a switch for banks to use xrp. It would be a flip of a switch for xrapid to pull extra liquidity from the ledger. Instead though is seems for now coil is utilizing xrapid from the ledger through gatehub. Furthermore anyone can use the public software to source liquidity from the xrpl using their own app. Widespread adoption would mean that decentralized payments would be the norm. Interfacing with traditional systems.

The introduction of 30,000 equity tokens to the XRPL is a sign that vast liquidity may be coming to the xrpl. That gives 30,000 pairs that can be traded again the CAD token. 

There is the possible additional revenue streams from merchants and payment requests. Maybe even a test bed store which can sell tshirts and crypto gear. 

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21 hours ago, superboon said:

How do you think this will succeed? Most of the Gateways were not able to be sustainable and died after a few years.

Also if you check gateways  that offer metals e.g GatehubFifth,  the volume is pretty much zero. Which means there is not really any demand for this.

And i cant imagine why customers will chose a new gateway with horrendous fees over other competitors. So whats your businessplan exactly?

 

Niche markets are tricky to enter and tend to have a high barrier to entry.  That is why most gateways tend to fail.

A new solution may garner new interest, only time can tell, I am still very much a silver bug and believe in its value stored in its physical form.  Digitizing such assets has been the reason why I got into Ripple in the first place, "email" for precious metals.

21 hours ago, yxxyun said:

gateways is just like exchanges, most exchanges also died after a few years. 

 

Gateways and exchanges are still a fairly new technology and the XRPL remains the best, in my opinion. decentralized exchange that is available.  

19 hours ago, jargoman said:

Exchanges tend to do well. The majority of them are NOT control your own keys and they get hacked. Or they don't have the licensing. The failed gateways had no ui and no clear instructions how to trade on the XRPL

I prefer the xrpl to any other exchange. It's fast, secure and no third party risk on xrp. Plus ripple partnerships every other day ensure that someone will be using this protocol in the future. There are zero canadian dollar issuers on the ledger. The market is wide open. 

Just as it would mean the flip of a switch for banks to use xrp. It would be a flip of a switch for xrapid to pull extra liquidity from the ledger. Instead though is seems for now coil is utilizing xrapid from the ledger through gatehub. Furthermore anyone can use the public software to source liquidity from the xrpl using their own app. Widespread adoption would mean that decentralized payments would be the norm. Interfacing with traditional systems.

The introduction of 30,000 equity tokens to the XRPL is a sign that vast liquidity may be coming to the xrpl. That gives 30,000 pairs that can be traded again the CAD token. 

There is the possible additional revenue streams from merchants and payment requests. Maybe even a test bed store which can sell tshirts and crypto gear. 

Even if we were to not enforce a TransferRate on our IOUs, the volume of deposits and withdrawals will be the key to the success or failed of a Gateway.  I have a solid terms of service which can be transferred to any new trade-name that we choose to operate under.  Most gateways were for advanced users and ignored newbies to the ecosystem.

It would be nice to ensure that there is a corridor for CAD.  Perhaps even getting on board with ODL could be a possibility if we succeed in launching a sustainable product.

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I have secured funding to begin the process of building a new CAD Ripple Gateway that will also offer all Precious Metals, USD, as well as Bitcoin and Ether IOUs on launch.  There is a possibility that we may also in the future after launch offer EUR on the XRPL.  I have begun to talk to my lawyer's office to begin the legal process of selling shares of 8569541 CANADA INC to another individual on XRPchat.  I have also reached out to FINTRAC to regain my access to the MSB portal portion of their website as for some reason my credentials produce an error when I attempt to login.

I do not have a time frame at this moment for when this new Gateway will launch but if everything goes smoothly then hopefully we should be operating within the next few months.  When we are about to launch, I will make an announcement thread here in this section of the forums, detailing the Terms of Service, the fee schedule, and all other important aspects of the Ripple Gateway.

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I have successfully completed a renewal form for my Money Services Business license and it has now been re-registered.  I am working on getting resources and tutorials ready for the website for when we launch (still no launch date yet).  The law firm I work with expects to have a shareholders agreement draft ready for my new business partner to review/sign by next week. 

Cheers all :)

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