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What a deflationary currency will bring to the world?

I have been wondering about this lately. Then I found this article:

http://eliasbizannes.com/blog/2017/10/why-bitcoin-or-another-deflationary-currency-will-lead-to-an-economic-revolution/

TL;DR: as long as investment has higher return then hoarding the deflationary currency, people will invest instead of hoarding.

Similarly, if market maker can make more than hoarding XRP, market maker will make market instead of hoarding.

How exactly is XRP going to work as a bridging digital asset?

Maybe this is obvious all along to some people. Anyway, I just figured this out. So I thought maybe it's worth sharing.

Previously I thought the bridging consists of two transactions, both on XRP ledger. One from fiat currency A IOU to XRP, the other from XRP to fiat currency B IOU.

Then I saw this:

https://www.xrpchat.com/topic/10981-xrapid-uses-crypto-exchanges-to-route-payments-in-real-time/

So Miguel Vias said in the pilot they used liquidity on bitstamp and bitso. However it's seems the trading volume of XRP/bitso.MXN since the beginning of 2017 is so low that it's virtually no liquidity there. See this:

https://xrpcharts.ripple.com/#/markets/XRP/MXN:rG6FZ31hDHN1K5Dkbma3PSB5uVCuVVRzfn?interval=1d&range=1y&type=candlestick

Then I realized, just like bitstamp, bitso has its own exchange and the liquidity there is much better.

https://bitso.com/trade/market/xrp/mxn

So now it's clear to me there is another way for XRP to bridge cross-border payments. The originat…

More ILP news

An article about ILP posted on American Express's website. It could mean nothing. But I won't be surprised if AE turned out to be using ILP for real since there's already rumor about it.

https://www.americanexpress.com/us/content/foreign-exchange/articles/international-payments-hyperledger-interledger/

everis (NTT Data) confirm their adoption of ILP as the Hyperledger Quilt Project

http://insights.everis.co.uk/post/102eihg/everis-ntt-data-confirm-their-adoption-of-ilp-as-the-hyperledger-quilt-project

These news prove that Ripple's collaboration with Hyperledger to produce the Java implementation of ILP (Hyperledger Quilt Project) is a very brilliant move.


So what does that mean for XRP? If you are a long time XRP hodler, you probably have already known this. But if you don't: The more ledgers ILP connects, the more payment volume XRP will be able to bridge. See also this.

Ripple released Q3 XRP market report

https://ripple.com/insights/q3-2017-xrp-markets-report/

The release caused the price to shot up vertically. Although it fell back a little shortly after.

The highlights of the report in my opinion are:
23 percent Q-o-Q volume increaseMore xRapid partnerships to be announced in Q4

xrp.ninja ripple.txt

I have created ripple.txt for my validator, following this instruction:

https://wiki.ripple.com/Ripple.txt.

Here is the link to my ripple.txt

https://xrp.ninja/ripple.txt

Here is my validator:

https://xrpcharts.ripple.com/#/validators/nHBTqw7vwjqrSMruoQNYmSXcrBmQHDquG7jgvrsQpurGaVELqdNx

I am going to have ripple employee change the validated domain name from rippled.xrp.ninja to just xrp.ninja.

The ripple.txt file can be validated here: https://ripple.com/build/ripple-txt-validator/

Several possible attacking modes on XRP ledger

https://www.xrpchat.com/topic/7229-a-question-about-validators/?do=findComment&comment=69555

There are several degrees of damage, that trusted validators can do (if they decide to give up their hard-earned trust), in increasing difficulty order:
If a set of them, each of which only trust others in the same set, with less than 20% of them trust validators not in that set, decide to collude, they can create fork.If more than 20% of them decide to collude, they can prevent transactions from being validated.If more than 80% of them decide to collude, they can rewrite history as they wish. 
However, as pointed out by mDuo13@, creating a fork is easy, but making people accept it is hard.

Ripple's XRP: Giving the Third-Largest Cryptocurrency a Second Look

http://www.coindesk.com/ripples-xrp-giving-third-largest-cryptocurrency-second-look/

It's not news that coindesk is very biased against Ripple. But publishing such an article is crossing the line. This author either really didn't know Ripple well, or he just wanted to mislead people. It's a shame for coindesk to publish such a garbage.

I will refute some of the claims made in that article.
"Instead of using proof-of-work, it relied on a new, unproven consensus protocol." Calling ripple consensus protocol is unproven is a bold assertion. Yet it didn't even try to back it up. On the other hand, XRP ledger has been in use for years and there has been no reports that it doesn't work. And it has defended itself against Stellar's attack once.
"This protocol requires users to extend trust to validating servers that produce this consensus." False. Users only need to trust gateway. Users never need to trust validator. Validators need to trust validator…

This article effectively pointed out ripple will be one of the final winners and yet it didn't know it

http://www.zerohedge.com/news/2017-06-30/understanding-cryptocurrency-boom-and-its-volatility

It says:

speculative booms eventually end and technologies mature into forms that solve real business problems in uniquely cheap and robust ways no other technology can match.

That said technology exists today. It is Ripple/XRP.

Illinois Is Venezuela and the Solution Is Cryptocurrency

http://observer.com/2017/06/illinois-is-venezuela-and-the-solution-is-cryptocurrency/

What this article really is trying to say is, the "real" money is inflationary in nature and they are being manipulated throughout its not so long history and you have no control over that.

On the contrary, cryptocurrencies (e.g. Bitcoin) are not inflationary (XRP is even deflationary).

This difference makes the latter will increase in value in terms of the "real" money inevitably.

So, buy the fucking every dip of cryptocurrencies and HODL!

How should a market maker (ILP connector) work?

The MM (ILPconnector) will hold XRP.

The MM will buy any fiat currency with XRP if they need to pay in that currency, and it will sell any fiat currency for XRP if that currency is not immediately needed.

One argument against this is MM can hold USD.

I disagree. Because:
USD is inflationary, XRP is deflationaryXRP has some features which make it a better bridging currency on ILP:Autobridging https://ripple.com/dev-blog/introducing-offer-autobridging/Escrow https://ripple.com/build/amendments/#escrowXRP reduces cost, see this graph

You have to know these about ripple wallet and secret key

TL;DR:

It's possible to find out others' secret keys but it's so improbable that it's almost impossible. Make sure you have a good entropy source when generating your address/secret key.Use multi-sign https://ripple.com/build/how-to-multi-sign/
See the discussion here: https://www.xrpchat.com/topic/6054-questions-about-secret-keysripple-wallet-addresses/

XRP Ninja

So I haven't done Gentoo work for a long time and I am no longer a Gentoo dev. I haven't updated this blog for a long time. I plan to start posting again.

I have been playing with ripple/xrp for almost 3 years. I had a negative ROI for most part of the last 3 years. Things changed about 2 months ago. 
So I decided to contribute back somehow. I started with setting up a rippled server. I am running it on GCE. It's running as a validator. It has a domain name rippled.xrp.ninja. I just got the domain verified by ripple.com. So you will see it on https://xrpcharts.ripple.com/#/validators very soon.
I will post another blog about how I got it up running. Stay tuned.