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EBB1898

xCurrent / xRapid / xVia???

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I've been reading through the recent additions to the Ripple website, and I have to say, I am a little confused. A fairly consistent criticism of Ripple has been the suggestion that banks are not required to use XRP in order to use their enterprise software solution. Up to now, I have been fairly comfortable with this criticism,  however, the recent updates have me little concerned. I was wondering if you guys had any thoughts on these developments, as well as my queries below? 

1) To me, the xCurrent documentation is describing an extremely efficient payment solution, which seemingly doesn't need XRP? If ILP is used to track debits, credits and liquidity throughout the payment process, all in milliseconds, where is the need for XRP? From what I have read in the ILP documentation,  I understand that payment flows from a sending ledger to a receiving ledger are facilitated by connectors. However, in the xCurrent documentation, it doesn't indicate where the connector is sourcing this liquidity.  I don't really understand how this model works, if the connector isn't using a distributed ledger. What, if anything, is actually being transferred between the sender and receiver via the connector? Is value actually being transferred in milliseconds? Or is an IOU between the sender > connector and connector > receiver being established?

2) In the Bank of England POC, they identified that sourcing liquidity is a current problem with ILP. If xCurrent has been deployed in major currency exchange corridors, where are the ILP connectors sourcing this liquidity? How will this be scaled to facilitate wholesale market transactions? I understand this is where XRP could play a role in the future, but the website revamp doesn't seem the put that information across. 

Just to check as well, on the XRP section on the Ripple website, it states that XRP is equipped to handle 1000tps? I thought this had recently been increased to 1500tps or is this still being tested?

Thanks in advance!!!

 

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50 minutes ago, EBB1898 said:

1) To me, the xCurrent documentation is describing an extremely efficient payment solution, which seemingly doesn't need XRP? If ILP is used to track debits, credits and liquidity throughout the payment process, all in milliseconds, where is the need for XRP? From what I have read in the ILP documentation,  I understand that payment flows from a sending ledger to a receiving ledger are facilitated by connectors. However, in the xCurrent documentation, it doesn't indicate where the connector is sourcing this liquidity.  I don't really understand how this model works, if the connector isn't using a distributed ledger. What, if anything, is actually being transferred between the sender and receiver via the connector? Is value actually being transferred in milliseconds? Or is an IOU between the sender > connector and connector > receiver being established?

2) In the Bank of England POC, they identified that sourcing liquidity is a current problem with ILP. If xCurrent has been deployed in major currency exchange corridors, where are the ILP connectors sourcing this liquidity? How will this be scaled to facilitate wholesale market transactions? I understand this is where XRP could play a role in the future, but the website revamp doesn't seem the put that information across. 

We've had a discussion going about some matching points in this thread a couple of days ago as well.

1) The way I understand it, from reading the solutions and reading/discussing here, with sending FIAT currencies, the sending bank sources/provides the liquidity internally/externally and the FX connector confirms the exchange rate, among other things. I'm making an assumption here, but if an FX connector isn't using the ledger, I'd guess the xCurrent user would opt for one that actually does work with the ledger system?

2) Are you referring to this bullet point of the PoC, "Cross-border payments when applied to wholesale markets present different challenges than when compared with retail and corporate transactions, which the Ripple product is designed to handle. The availability of liquidity is one such challenge, and the PoC allowed the Bank and Ripple to begin exploring these questions"?

If so, I'm reading this as a current challenge in the market today, with cross border payments in more exotic FIAT currencies, those high friction corridors that are mentioned quite often when talking about Ripple's products. A challenge that Ripple initially aims to tackle with xRapid, which would use XRP as the bridge?

Edited by Mattie

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1 hour ago, EBB1898 said:

I've been reading through the recent additions to the Ripple website, and I have to say, I am a little confused. A fairly consistent criticism of Ripple has been the suggestion that banks are not required to use XRP in order to use their enterprise software solution. Up to now, I have been fairly comfortable with this criticism,  however, the recent updates have me little concerned. I was wondering if you guys had any thoughts on these developments, as well as my queries below? 

1) To me, the xCurrent documentation is describing an extremely efficient payment solution, which seemingly doesn't need XRP? If ILP is used to track debits, credits and liquidity throughout the payment process, all in milliseconds, where is the need for XRP? From what I have read in the ILP documentation,  I understand that payment flows from a sending ledger to a receiving ledger are facilitated by connectors. However, in the xCurrent documentation, it doesn't indicate where the connector is sourcing this liquidity.  I don't really understand how this model works, if the connector isn't using a distributed ledger. What, if anything, is actually being transferred between the sender and receiver via the connector? Is value actually being transferred in milliseconds? Or is an IOU between the sender > connector and connector > receiver being established?

2) In the Bank of England POC, they identified that sourcing liquidity is a current problem with ILP. If xCurrent has been deployed in major currency exchange corridors, where are the ILP connectors sourcing this liquidity? How will this be scaled to facilitate wholesale market transactions? I understand this is where XRP could play a role in the future, but the website revamp doesn't seem the put that information across. 

Just to check as well, on the XRP section on the Ripple website, it states that XRP is equipped to handle 1000tps? I thought this had recently been increased to 1500tps or is this still being tested?

Thanks in advance!!!

 

Previous comment not intended to offend! Please, keep asking!

I'm just super impressed at how well @JoelKatz can keep up with all the new members and consistent questions. 

Not at all meant to discourage your curiosity. 

Hodl on!

 

Edit: Not meant to be an insult to people asking questions. Just praise for Mr. Schwartz and his willingness to consistently provide clarity. 

 

Edited by Hodlezerper
Clarification

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14 minutes ago, Hodlezerper said:

Is David Schwartz the most patient man on the internet?

I nominate thee as such. It has been hereby decreed, sealed and delivered via XRP to the ledger heralded within the mighty inter-webs that thee, @JoelKatzhas the patience of time itself.

God speed...and may the Schwartz be with you. 

Someone should make a FAQ and sticky it ?

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@Hodlezerper haha not at all. I completely agree with you! Unbelievable as you say the amount of questions answered!!! 

@JoelKatz Thank you for your detailed example! I was in the process of writing a question, but @cmbartley answered it haha thank you very much. I will check out the talk as recommended! I look forward to reading over this great info again!!!

@Mattie Thanks for the link our to your questions!!!

1 hour ago, Mattie said:

2) Are you referring to this bullet point of the PoC, "Cross-border payments when applied to wholesale markets present different challenges than when compared with retail and corporate transactions, which the Ripple product is designed to handle. The availability of liquidity is one such challenge, and the PoC allowed the Bank and Ripple to begin exploring these questions"?

Yeah that's the one. Interesting, when I read it I thought the opposite haha :unsure: I thought they were meaning that wholesale markets would require access to a much larger pool of liquidity to allow these instant transactions? Please correct me if I'm wrong!

Thanks again for these awesome responses!

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4 hours ago, JoelKatz said:

That's one of the reasons I try to come up with a new way to explain it each time rather than just referring people to other places where I've already explained it. There are so many possible way to answer the same question and we want to get all of them out there. Different answers will click for different people because they all had slightly different things in mind when they asked the question.

Boss.

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@cmbartley Thanks for the heads up about Ryan Zagone's video. Really useful information

After watching it a few times, I have a question about the simultaneous settlement procedure. Specifically the part where he describes the process by which sending/receiving/institutional ledgers simultaneously update. Hopefully I'm not making a silly mistake here, but in this example, would the USD Liquidity Account still have a credit liability? Is the part where the USD Liquidity Account credits the MRY Liquidity Account missing from the presentation??? Following the diagram given, the overall bank balances don't seem to change???

Thanks in advance! Hope you enjoying your weekends.

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20 hours ago, JoelKatz said:

That's one of the reasons I try to come up with a new way to explain it each time rather than just referring people to other places where I've already explained it. There are so many possible way to answer the same question and we want to get all of them out there. Different answers will click for different people because they all had slightly different things in mind when they asked the question.

You, sir, are not only a genius but also a true professor! Has Ripple Labs given any thought to any kind of training platform? It's beginning to look like the pinch point for widespread adoption might be the ability to hire competent personnel to oversee Ripple in banks, law firms, government etc. I'm guessing the talent pool is somewhat limited?

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