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MIT + FED technical researcher on CBDC architecture.


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14 minutes ago, KarmaCoverage said:

If you can read between the lines on the technical features, this screams IoV, ILP, RippleNet & XRPL.

One thing I don't get, maybe you can shed light on this: why doesn't he mention any other crypto projects except for BTC? Is it because he's talking to a bitcoin group? Is it because he's not really aware of what's going on apart from BTC and 'smart contracts'? 

This happens a lot when I see people talking about 'cryptocurrencies' on the TV, they talk as if bitcoin and it's 5 transactions a second are the only technology available. I just assume that is out of ignorance, but surely this guy is aware of other tech that's out there?

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Posted (edited)
16 minutes ago, Seoulite said:

One thing I don't get, maybe you can shed light on this: why doesn't he mention any other crypto projects except for BTC?

Do you know who the "Point Man" is in a military room clearing exercise is? He is often highly respected by his colleagues... because he is the first guy to get shot as the first through the door.

If you know the technical details, there is a ton of very legitimate details he shares, almost too much honestly, that only Ripple's network of networks can provide.

What is a private CBDC ledger look like, well it's simply a custom version of XRPL. Or some version there of. I'm pretty sure xCurrent is selling Commercial Banks their own private XRPL, Central Banks would only have a slightly different set of technical requirements.

He is playing coy with "there is nothing avaliable off the self". See Ripples public announcement of Private CBDC ledgers.

Edited by KarmaCoverage
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20 minutes ago, KarmaCoverage said:

If you know the technical details, there is a ton of very legitimate details he shares, almost too much honestly, that only Ripple's network of networks can provide.

Thanks for that explanation. Even with my little knowledge I can hear that he’s pretty clearly saying they are not going to use Bitcoin; as you said he says “nothing off the shelf” quite a few times. Also when he talks about breaking up the Bitcoin “monolith” it sounds a lot like he is saying yeah Bitcoin would need to be radically reformed for this kind of use. 

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@Seoulite he is talking about TX fee anti Spam, ILP payment Channels, offline TX signing (when the power is out,nor no network connectivity), RippleNet & Hosted wallets aka Commercial Bank Gateways for scaling... on and on. 

He is describing Ripple's vision for the IoV architecture. At least to my ears.

Payment Channels enable infinite P2P TPS scalability. It comes down to how fast can the two parties communicate. No ledger transactions, and his term "allowances" is how much Value is put into the PayChan.

Edited by KarmaCoverage
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16 minutes ago, KarmaCoverage said:

@Seoulite he is talking about TX fee anti Spam, ILP payment Channels, offline TX signing (when the power is out,nor no network connectivity), RippleNet & Hosted wallets aka Commercial Bank Gateways for scaling... on and on. 

He is describing Ripple's vision for the IoV architecture. At least to my ears.

Payment Channels enable infinite P2P TPS scalability. It comes down to how fast can the two parties communicate. No ledger transactions, and his term "allowances" is how much Value is put into the PayChan.

Awesome interview! It did sound suspiciously like the XRPL's solution set.

I wonder how many of the similarities are because Ripple is working with the Fed, as opposed to the Fed and Ripple both reaching similar technical conclusions when faced with nearly identical problems... but given the diversity of blockchain solutions out there, I'm leaning toward the former.

DS has spoken a bit about how Ripple is creating independently run copies of the XRPL for their CBDC products... it wouldn't surprise me if one of those ledgers was this proof-of-concept. 

To get a bit tinfoily, while we don't know much about Polysign at the moment we do know they are set up to solve the custody issues that Anders brings up at length in this chat. DS has also revealed that Polysign is more than "just" a custody solution. We know it involves the user recording a video of themselves saying a uniquely-generated passphrase in order to gain access to payments functionality... possibly with a hardware component involved as well. It would make sense to license this software product to Ripple, who would in turn bake it into their CBDC sales pipeline. Suddenly Polysign becomes a CBDC custody company to address humanity-scale digital asset access. stress i need a drink GIF

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19 minutes ago, ADingoAteMyXRP said:

We know it involves the user recording a video of themselves saying a uniquely-generated passphrase in order to gain access to payments functionality... possibly with a hardware component involved as well.

How do we know this? Did I miss something? 

Biometrics are important, and at the Photo holding your ID level, have been around for years. 

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32 minutes ago, KarmaCoverage said:

How do we know this? Did I miss something? 

Biometrics are important, and at the Photo holding your ID level, have been around for years. 

You must have blinked at the wrong time! (Much like Yoshitaka Kitao).

There’s a Standard Custody app on the App Store with some preview images. I think it’s only on Tim Apple’s phones though.

 

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Posted (edited)

He does a good job of explaining the type of issues that central bankers & regulators are looking at. At the end around 1:06, he says he is working on "Reimagining Central Banking".

Money market = short term

Capital market = long term

When he defines Shadow Banking as "Money market funding, for Capital Market lending"... You can think of ODL as a counter weight.

ODL is "Capital market funding, for Money market lending". Longterm Capital (XRP) funding Short term lending (payments liquidity).

I hope I'm seeing CBDCs being designed as a counter weight to Credit expansion created by commercial bank lending. That way if we have another bank run, folks can run to Narrow Bank's fully backed CBDC, and out of commercial bank deposits.

No reason both services can't be offered by the same firm to speed up CBDC adoption. When we see the first commercial banks offering fully backed CBDC accounts, take notice.

Edited by KarmaCoverage
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