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Aesthetes: Art NFTs on the XRPL with Airdrop


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45 minutes ago, B088IN said:

Thanks. Setting up on the XRPtoolkit is super easy, especially if you already did it for Flare.

Flare Community youtube dude did a great video just showing what you need to do. It's super easy, copy and paste into a couple of boxes and then sign the transaction with your ledger.

 

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I read about this airdrop, but I haven't been able to find the answers to two important questions:

1) What is a trust line and does opening one create any risks or liabilities for the XRP account holder?

2) Does anyone know how much they propose to airdrop? 

I read the XRP Toolkit explanation and it sounds like you agree to receive non-XRP tokens on the ledger, which seems harmless. Is there a reason not to set up trust lines?


Sean

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8 hours ago, Treehouse said:

1) What is a trust line and does opening one create any risks or liabilities for the XRP account holder?

A trust line allows another account to send you a specific IOU ("issued currency") up to the amount specified by the trust line. By default there's no risk, but it does lock 5 XRP of your balance until you close the trustline.

You should be sure that "rippling" does not become enabled for the trustline, as there are risks associated with that. By default it is disabled.

8 hours ago, Treehouse said:

2) Does anyone know how much they propose to airdrop?

They specified 510 million to be airdropped in the white paper, which is 51% of supply. They didn't say if that would be divided exactly between all claiming wallets, but they said that each claim will receive the same amount.

 

8 hours ago, Treehouse said:

Is there a reason not to set up trust lines?

Not technically, bearing in mind my points above. But the airdrop may have tax implications for you, but I don't think there's enough information to work that out yet.

Edited by at3n
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I've found some reddit posts where someone provided a very detailed explanation of how trust lines operate, which is both helpful and confusing. I understand that these were originally created with the idea of allowing the trading of obligations and, essentially, would thereby allow for something that operates like a peer-to-peer network credit system to function. The use of "IOU" as a term is confusing in this context. I understand the idea that when I see a balance on a third-party like an exchange or a bank, it is essentially a promise from them to me (or vice versa) that one of us will provide the other a sum of money, tokens, or whatever upon demand (or at a fixed time such as end of the month). However, if someone is issuing me tokens, I don't understand what that is an IOU as opposed to a transfer of property. When talking about fiat, you can distinguish between a denominated balance between myself and a counter-party, but I can also get the physical items. With crypto tokens, there is no physical item and it is all just changing numbers on a ledger.

So I don't understand why a transfer is an IOU rather than a transfer of ownership. To me, "IOU" suggests that I will have to return it.

So if I open a trust line for ELS and they issue currency which gets credited to my account in the XRP ledger, then is there an implication that I should return it at some point?

If I transfer the issued currency (also called an IOU) to someone else, can the original issuing party invalidate the transfer?

 

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Anyone tried this via Gatehub? 

Logged in to give it a go, but Gatehub only accept three-letter currency codes, so most of these airdrops simply don't work. I really don't get Gatehub. What is it exactly that they ARE?! What is their focus, what are they trying to be?! On the one hand they preach tokenization/IOUs and trustlines, on the other hand, their UX is appalling and they haven't updated their trustline features to actually work with tokens! Wtf.

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@Treehouse I think this is a reason that Ripple have changed from calling them IOUs to "issued currencies", because nowadays it more accurately reflects the more common use case, which is not really an IOU as you point out.

In this case, I don't think that the ELS are representing any underlying asset, so no, there's no concept of "returning" them, they're just another crypto token, not an IOU.

Also they are only true IOUs if there's some sort of contract that is agreed along with the ownership of the tokens. For example if I sent you Gatehub USD IOUs, Gathub only have a responsibility to repay you in real USD if you first sign up with them, and then return the IOUs. But you could still trade the IOUs with others so they still have value to you.

It's just a name, IOU or issued currency, not really important.

2 hours ago, Treehouse said:

If I transfer the issued currency (also called an IOU) to someone else, can the original issuing party invalidate the transfer?

No, but they can freeze the assets so that the other party can't do anything with them.

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1 hour ago, Treehouse said:

I've found some reddit posts where someone provided a very detailed explanation of how trust lines operate, which is both helpful and confusing. I understand that these were originally created with the idea of allowing the trading of obligations and, essentially, would thereby allow for something that operates like a peer-to-peer network credit system to function. The use of "IOU" as a term is confusing in this context. I understand the idea that when I see a balance on a third-party like an exchange or a bank, it is essentially a promise from them to me (or vice versa) that one of us will provide the other a sum of money, tokens, or whatever upon demand (or at a fixed time such as end of the month). However, if someone is issuing me tokens, I don't understand what that is an IOU as opposed to a transfer of property. When talking about fiat, you can distinguish between a denominated balance between myself and a counter-party, but I can also get the physical items. With crypto tokens, there is no physical item and it is all just changing numbers on a ledger.

So I don't understand why a transfer is an IOU rather than a transfer of ownership. To me, "IOU" suggests that I will have to return it.

So if I open a trust line for ELS and they issue currency which gets credited to my account in the XRP ledger, then is there an implication that I should return it at some point?

If I transfer the issued currency (also called an IOU) to someone else, can the original issuing party invalidate the transfer?

 

You're right. This is why the preferred term is now issued currency. Some issued currencies on the XRPL are IOUs, but others, like CasinoCoin or Sologenic, are coins in and of themselves that don't represent something else.

It might be better to think of IOUs like wrapped coins. If you deposit a Bitcoin to get a WBTC on Ethereum, the expectation is that you can always go back to the issuer to exchange the WBTC back into BTC. If you deposit dollars with Bitstamp in exchange for their USD IOUs on the XRPL, you can send them back to Bitstamp to convert back to dollars. The obligation is always on the IOU issuer to redeem it for the value it represents, not on the holder.

This ELS is like the XRPL equivalent of an ERC-20 token like UNI or something. There's no promise that it can be redeemed for anything, it's just with whatever people value it at.

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14 hours ago, Treehouse said:

1) What is a trust line and does opening one create any risks or liabilities for the XRP account holder?

There is not really any risk to opening a Trustline per se, but years ago there was some sort of attack vector where if you had a trustline with Rippling enabled, then someone was taking your valuable tokens by sending you valueless tokens and recieving your valuable ones.

I think there was a fix done on this, but you can disable Rippling for each individual trustline. Unless necessary for the service, I'd suggest disabling Rippling.

https://xrpl.org/rippling.html

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2 hours ago, Treehouse said:

What does "black holed" mean?

https://xrpl.org/accounts.html

Quote

Special Addresses

Some addresses have special meaning, or historical uses, in the XRP Ledger. In many cases, these are "black hole" addresses, meaning the address is not derived from a known secret key. Since it is effectively impossible to guess a secret key from only an address, any XRP possessed by black hole addresses is lost forever.

Basically you change a wallet's secret key to a wallet that dosent have a key, and disable the Master key possibility. 

There are other people here who can give a more technical explanation, but the essence of blackholeing a wallet means that no more transactions can be signed by that wallet.

So you could set up a wallet, issue an NFT, blackhole the wallet... and everyone knows that more of that NFT cannot be issued ever.

 

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2 hours ago, KarmaCoverage said:

There is not really any risk to opening a Trustline per se, but years ago there was some sort of attack vector where if you had a trustline with Rippling enabled, then someone was taking your valuable tokens by sending you valueless tokens and recieving your valuable ones.

I think there was a fix done on this, but you can disable Rippling for each individual trustline. Unless necessary for the service, I'd suggest disabling Rippling.

https://xrpl.org/rippling.html

 

I have been looking around and there are indeed some old posts about the attack vector that you describe. However, none of them are particularly clear explanations about what happens and when turning off rippling is enough to prevent it. I'm also wondering if you can decline to receive a transaction once you have opened a trust line. 

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The rippling vulnerability is when you have two trustlines open for the same currency code but from two different issuers. If rippling is enabled, a third party can replace one of your currencies with the other without any interaction from you.

This is a problem for example when one of the issuers has gone out of business, and therefore their IOUs are now worthless. Your valuable IOUs can then be replaced with worthless IOUs. This is still possible today, but it does require that specific set of circumstances to be carried out.

8 minutes ago, Treehouse said:

I'm also wondering if you can decline to receive a transaction once you have opened a trust line.

You can set the maximum quantity of each IOU that you're happy to receive in total, so if you set that to be equal to the amount that you currently have, then no-one else will be able to send you any more until the amount you hold drops below the set amount.

Edited by at3n
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