Jump to content

Closing the circle on XRP <> Flare Interoperability


Recommended Posts

On 10/9/2020 at 3:18 PM, KarmaCoverage said:

This enables IOUs to be as Trustless as XRP on the XRPL... that is a big f*ing deal!

I've been unwell last week or so and haven't been able to catch-up properly with all these developments, until now. So I took the time at last to read up on Flare, and while I was impressed, nothing stuck out as truly valuable to the XRP ledger... until I saw this.

This really is a gamechanger for XRPL. I need to understand the incentives better and possible flaws in the setup process. But conceptually I don't see any massive barriers and I also think as we spoe about before, XRPL+Flare using similar methods would now be able to handle on-DEX derivatives of all sorts. 

I am looking forward to seeing some tangible steps in Flare's development and some benchmarks esp. regarding transaction throughput and validators, etc. 

Link to post
Share on other sites
21 hours ago, thinlyspread said:

and possible flaws in the setup process

The biggest "flaw" I see, is that for the whole process to unfold trustlessly, the "Redemption" must be to an asset on the Flare network. Should someone not trust the Flare network then they wouldn't work.

However the counter point would be that Flare is just Smart Contracts and you should be able to assess the code of the Smart Contract and trust in that. So you wouldn't exactly be trusting Flare network. That said, I need to finish reading their white paper and understand the role of Spark tokens and Governance of the network. 

Link to post
Share on other sites
2 hours ago, KarmaCoverage said:

The biggest "flaw" I see, is that for the whole process to unfold trustlessly, the "Redemption" must be to an asset on the Flare network. Should someone not trust the Flare network then they wouldn't work.

However the counter point would be that Flare is just Smart Contracts and you should be able to assess the code of the Smart Contract and trust in that. So you wouldn't exactly be trusting Flare network. That said, I need to finish reading their white paper and understand the role of Spark tokens and Governance of the network. 

Right – it just abstracts out the trust to the network at large rather than individual issuances. Easier risk factor to control for.

I am still concerned about where all the buy side liquidity is going to come from for Spark, especially given the general distrust/dislike for XRP in the eyes of much of the crypto/retail community (who let's face it, are mostly the buyers for now), and the ease at which one can acquire Spark tokens – doubtless many who will dump them (even just to buy more XRP). 

Link to post
Share on other sites
10 minutes ago, thinlyspread said:

Right – it just abstracts out the trust to the network at large rather than individual issuances. Easier risk factor to control for.

This is the same with XRP and the XRPL, the "trust" is just distributed across the network, because the XRPL network is the counterparty for XRP.

11 minutes ago, thinlyspread said:

I am still concerned about where all the buy side liquidity is going to come from for Spark, especially given the general distrust/dislike for XRP in the eyes of much of the crypto/retail community (who let's face it, are mostly the buyers for now), and the ease at which one can acquire Spark tokens – doubtless many who will dump them (even just to buy more XRP). 

One source of demand is the situations where a "redemption" fails and the Receiver gets enough Spark tokens to repurchase the fXRP and try to redeem again. 

Escrowing the value denominated in Spark and the need to do so, would be another source of Demand for Spark. Same sort of thing for XRP being escrowed to back up fXRP on the Flare network.

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.