The Ripple Drop – Episode 3
Welcome back for episode three of The Ripple Drop, a video series covering the latest news about our customers, technology, products and company culture.
Our first segment offers a deeper look at the Swell 2018 program, our invite-only customer conference connecting the world’s leading experts on policy, payments and technology. We talk to Austin Cowden, Manager of Global Events, to learn more about President Bill Clinton’s keynote and the dynamic line-up of speakers and panelists to follow.
The second segment provides a sneak peek into our recently opened New York City office. We sit down with Hana Kelley, Visual Design Lead, to understand how the Ripple brand is translated throughout this beautiful physical space.
Our final segment features Ripple’s summer 2018 intern class. We’ve had a talented group of students from across the country join every department in the company — from marketing to business development to engineering. They share experiences and highlights working alongside our team in the San Francisco office.
We hope you enjoy this episode, and as always, share via comments on Twitter, LinkedIn and Facebook with input for future episodes. An extended cut of this episode will also be available on Youtube. And, if you haven’t yet, make sure to catch up on episode one and episode two!
xRapid Brings on Three New Exchange Partners
xRapid, Ripple’s cross border payments product that minimizes liquidity costs, is powered by the superior speed, low transaction cost and scalability of the digital asset XRP. But for xRapid to be most successful, there needs to be a healthy ecosystem of digital asset exchange partners around the world. These exchanges allow xRapid payments to move from one currency – into XRP – and back into another currency quickly and efficiently.
Today, we’re pleased to announce Bittrex will act as the preferred digital asset exchange for xRapid transactions that move through US Dollars. In addition, Bitso and Coins.ph will be preferred for Mexican Pesos and Philippine Pesos, respectively.
Here’s what a xRapid payment flow will look like from the U.S. to Mexico:
- A financial institution, that has an account with Bittrex, initiates a payment in US dollars via xRapid which is instantly converted into XRP on Bittrex.
- The payment amount in XRP is settled over the XRP Ledger.
- Bitso – through its Mexican Peso liquidity pool – instantly converts the XRP into fiat, which is then settled into a destination bank account.
“Bittrex is one of the biggest names in digital asset trading in the U.S. The same goes for Bitso in Mexico and Coins.ph in the Philippines. That makes today’s announcement an important development for xRapid,” said Cory Johnson, Chief Market Strategist at Ripple. “We’ve seen several successful xRapid pilots already, and as we move the product from beta to production later this year, these exchange partners will allow us to provide financial institutions with the comfort and assurance that their payments will move seamlessly between different currencies.”
“We are excited to be partnering with Ripple to bring the benefits of blockchain technology to cross-border payments, making sending money home more affordable for 10M+ overseas filipino workers”, says Ron Hose, CEO of South East Asia’s e-wallet and financial services company, Coins.ph.
In May, Ripple announced that financial institutions piloting xRapid saved 40-70% on average compared to traditional foreign exchange brokers who facilitate cross-border payments. The payments also settled in two minutes or less compared to two to three days from traditional methods.
For more information on Ripple’s solutions or to learn more about becoming an xRapid partner contact us.
RippleNet Offers SMEs a Competitive Advantage in Global Payments
While global business may move at the speed of the web, international payments instead seem to move like smoke signals. This is because the world’s payments infrastructure hasn’t changed since the heady days of disco, nearly four decades ago. Especially for teams at small and medium enterprises (SMEs), this disconnect between the hustle of business today and inertia old infrastructure creates unnecessary hurdles and impediments to smooth business operations.
Today’s system of moving money around the world forces banks and payment providers to plan for days of delay, produce their own liquidity by funding accounts in local currencies on each side of a transaction, and pass along exorbitant costs to their customers. For SMEs, this translates into a cumbersome payments experience with high fees, limited visibility into transaction details or status, and a settlement time that can stretch from days into weeks.
In contrast, RippleNet delivers a new global payments standard that speeds up transactions, introduces certainty, and lowers fees to transform the cross-border payments experience. Using RippleNet, banks and payment providers can reimagine a payment from invoice to confirmed settlement for their clients. Just one small change, like the ability to drag-and-drop invoices as part of a RippleNet powered transaction, can have many benefits: it saves time with pre-populated fields, automatically confirms recipients for accuracy, and obtains real-time quotes.
The end result is a vastly improved user experience for a transaction delivered in seconds and with confidence, at a fraction of the usual price.
Emerging Markets Close the Gap with Ripple
This sea change in international payments is even more important when you consider the World Bank forecasts global remittance payments to grow by 3.4 percent or roughly $466 billion in 2018. Much of this will happen in emerging markets, which are home to 85 percent of the global population and account for almost 60 percent of global GDP, with India and China having the highest incoming flows in 2017.
Designed to solve the modern challenge of international or cross-border transactions, RippleNet is already having an impact in these emerging markets. With a growing global need not just for access, but also a more efficient, transparent and cost-effective payments into and out of emerging markets, new financial institutions in India, Brazil and China have joined RippleNet to power instant remittance payments into their countries.
SMEs also play a critical economic role in these emerging markets. RippleNet delivers efficiencies and advantages that can help them be more competitive in an interconnected world.
Rather than be limited by borders and currencies, Ripple connects all
parties in a global transaction through a single seamless, frictionless
experience. Built for the Internet age, Ripple delivers access, speed,
certainty and savings. And by leveraging the most advanced blockchain
technology possible, it is scalable, secure and interoperable.
Ripple (XRP) Validator Domain Verifier
Verifies Ripple validator domain verification signatures https://ripple.com/build/rippled-setup/#domain-verification
npm install npm start
To verify a new validator, add its information to validators.json
If its SSL certificate cannot be retrieved from the domain, the path to a local copy of the certificate can be added to the entry in validators.json
President Bill Clinton and Counting Crows Headline Swell 2018
Swell by Ripple is the only event today where blockchain, finance and policy converge — a meeting ground for more than five hundred industry experts committed to changing the way money moves around the world.
Swell’s provocative program kicks off on day one with a keynote by President Bill Clinton. Leaders from global banks, including Banco Santander and Siam Commercial Bank, also take center stage to share how Ripple’s blockchain technology has opened up new opportunities in remittances around the world. Innovators in international payments — Cuallix IDT, InstaRem and BeeTech — end the day with sessions on topics ranging from cheaper and faster payments through RippleNet to digital asset adoption across the financial services industry
Of note on day two, Amy Radin, author and Fortune 100 chief innovation officer, Ben Braybn, head of Level39, and Tokunboh Ishmael, chairwoman of the African Venture Capital Association and managing director and founder of Alitheia Capital, sit down to discuss how they embraced disruptive technology as part of their organizational ethos with moderator Ripple SVP of Business and Corporate Development Kahina Van Dyke.
In addition to the program, attending customers will be able to connect directly with one another to establish new corridors and services with RippleNet. A “lightning round” session is dedicated to giving attendees the opportunity to explore these partnerships.
Ripple’s Blockchain Innovator Awards at Swell 2018 will also honor customers. These awards recognize thought leaders and first-movers within RippleNet — the people and companies that are using blockchain to remove friction from global payments.
Finally, Ripple is throwing a special customer celebration featuring Counting Crows, the award-winning rock band from Berkeley, CA, on the evening of October 1st.
Swell 2018 brings customer and their stories to the forefront and helps create new connections among them. The future of global payments is being shaped and built by these outstanding companies and individuals.
The event is less than a month away. For more information, please visit the Swell website and stay tuned over the coming weeks for more updates.
ripple Release lib version 1.0.0
We are pleased to announce the release of ripple-lib version 1.0.0!
rippledAPIs, including subscriptions.
When using this version with
rippledfor online functionality, we recommend using
rippledversion 1.0.1 or later.
Below is a summary of the changes since ripple-lib version 0.22.0 (the previous non-beta version).
prepareTransaction()for preparing raw
- XRP amounts can be specified in drops. Also,
dropsToXrp()are available to make conversions.
getTransactionresponses can include a new
channelChangesproperty that describes the details of a payment channel.
Data Validation and Errors
- Amounts in drops and XRP are checked for validity.
- A maximum fee is now
imposed. Exceeding it causes a
ValidationErrorto be thrown.
- Errors are improved and more data validation was added.
- Bug fix:
getPathsnow filters paths correctly and works correctly when the destination currency is XRP.
The following changes were introduced in 1.0.0.
specification.destination.amountfield has been removed from the parsed transaction response.
- To determine the amount that a transaction delivered, use
- If you require the provisional requested
Amountfrom the original transaction:
- Use the rippled APIs directly with
request. For example, call the API methods
rawTransactionsfield has been removed (for consistency with
- Instead, within each
transaction, use the new
metaDatafield has been renamed to
metafor consistency with rippled's
ledger_indexhas been added to each raw transaction.
Introducing XRP Ledger (rippled) version 1.1.0
Ripple is pleased to announce the release of XRP Ledger (
rippled) version 1.1.0.
The XRP Ledger version 1.1.0 release includes the DepositPreAuth Amendment, which, combined with the previously released DepositAuth Amendment, allows users to pre-authorize incoming transactions to accounts, by whitelisting sender addresses. XRP Ledger version 1.1.0 release also includes incremental improvements to several previously released features (fix1515 Amendment), deprecates support for the sign and sign_for commands from the rippled API and improves invariant checking for enhanced security.
Ripple recommends that all server operators upgrade to XRP Ledger version 1.1.0 by Thursday, 2018-09-27, to ensure service continuity.
If you operate a XRP Ledger server, you should upgrade to XRP Ledger version 1.1.0 by Thursday, 2018-09-27, to ensure service continuity.
Impact of Not Upgrading
Ripple expects the DepositPreAuth or fix1515 amendments to become enabled on or after Thursday, 2018-09-27. When this happens, if you are not running release 1.1.0 or greater, your server will become amendment blocked, meaning that it:
Cannot determine the validity of a ledger;
Cannot be able to submit or process transactions;
Cannot participate in the consensus process;
Cannot vote on future amendments; and
Could rely on potentially invalid data.
If the DepositPreAuth and fix1515 Amendments do not become enabled, then your XRP Ledger server will not become Amendment blocked and should continue to operate.
For instructions on updating the XRP Ledger server on supported platforms, see here: Updating
rippledon Supported Platforms.
The SHA-256 for the RPM is:
The SHA-256 for the source RPM is:
The SHA-256 for the debug-info RPM is:
The first log entry should be the change setting the version:
commit 3e22a1e9e8f2de450eded6ca4c2db6411e329b2a Author: Nik Bougalis <[email protected]> Date: Wed Sep 5 18:34:43 2018 -0700 Set version to 1.1.0
The Ripple technical operations has deployed version 1.1.0 to all XRP Ledger servers under its operational control, including private clusters, as of Thursday, 2018-09-13.
Learn, ask questions, and discuss
Related documentation is available in the XRP Ledger Dev Portal, including detailed example API calls and web tools for API testing: https://developers.ripple.com/
- The Ripple Forum: https://forum.ripple.com/
- The Ripple Dev Blog: https://ripple.com/category/dev-blog/
- Ripple Technical Services: [email protected]
- XRP Chat: http://www.xrpchat.com/
Bug Bounties and Responsible Disclosures
On behalf of the XRP Community, Ripple would like to thank Guido Vranken, for responsibly disclosing several issues related to some of the encoder / decoder logic in rippled. As always, Ripple welcomes reviews of the XRP Ledger open source codebase and urge reviewers to responsibly disclose any issues that they may find. For more on Ripple’s Bug Bounty program, please visit https://ripple.com/bug-bounty/.
When compiling XRP Ledger from source, you must use a compatible version of the Boost library. As of XRP Ledger version 1.1.0, Boost 1.67.0 is required for all platforms.
1.1.0 Change Log
Add DepositPreAuth ledger type and transaction (#2513)
Increase fault tolerance and raise validation quorum to 80%, which fixes issue 2604#2613)
Support ipv6 for peer and RPC comms (#2321)
Refactor ledger replay logic (#2477)
Improve Invariant Checking (#2532)
Expand SQLite potential storage capacity (#2650)
Replace UptimeTimer with UptimeClock (#2532)
Don’t read Amount field if it is not present (#2566)
Remove Transactor:: mFeeDue member variable (#2586)
Remove conditional check for using Boost.Process (#2586)
Improve charge handling in NoRippleCheckLimits test (#2629)
Migrate more code into the chrono type system (#2629)
Supply ConsensusTimer with milliseconds for finer precision (#2629)
Refactor / modernize Cmake (#2629)
Add delimiter when appending to cmake_cxx_flags (#2650)
Remove using namespace declarations at namespace scope in headers (#2650)
Deprecate the ‘sign’ and ‘sign_for’ APIs (#2657)
Use liquidity from strands that consume too many offers, which will be enabled on fix1515#2546)
Fix a corner case when decoding base64 (#2605)
Trim space in Endpoint::from_string (#2593)
Correctly suppress sent messages (#2564)
Detect when a unit test child process crashes (#2415)
Add missing virtual destructors (#2532)
Improve JSON exception handling (#2605)
Handle WebSocket construction exceptions (#2629)
We welcome external contributions to the XRP Ledger codebase. Please submit a pull request with your proposed changes on the GitHub project page at https://github.com/ripple/rippled.
On behalf of the XRP Community, Ripple would like to thank those who have contributed to the development of the XRP Ledger (rippled) open source code, whether they did so by writing code, running the software, reporting issues, discovering bugs or offering suggestions for improvements.
The following is the list of people who made code contributions, large and small, to XRP Ledger prior to the release of 1.1.0:
Aishraj Dahal, Alex Chung, Alex Dupre, Andrey Fedorov, Arthur Britto, Bob Way, Brad Chase, Brandon Wilson, Bryce Lynch, Casey Bodley, Christian Ramseier, crazyquark, David Grogan, David Schwartz, Donovan Hide, Edward Hennis, Elliot Lee, Eric Lombrozo, Evan Hubinger, Frank Cash, Howard Hinnant, Jack Bond-Preston, jatchili, Jcar, Jed McCaleb, Jeff Trull, Joe Loser, Johanna Griffin, Josh Juran, Justin Lynn, Keaton Okkonen, Lieefu Way, Luke Cyca, Mark Travis, Markus Teufelberger, Miguel Portilla, Mike Ellery, MJK, Nicholas Dudfield, Nikolaos D. Bougalis, Niraj Pant, Patrick Dehne, Roberto Catini, Rome Reginelli, Scott Determan, Scott Schurr, S. Matthew English, Stefan Thomas, The Gitter Badger, Ties Jan Hefting, Tim Lewkow, Tom Ritchford, Torrie Fischer, Vahe Hovhannisyan, Vinnie Falco, Warren Paul Anderson, Will, wltsmrz, Wolfgang Spraul and Yana Novikova.
As XRP Ledger moves to the 1.0 series, we look forward to more external contributions and are excited to see the broader XRP Ledger community grow and thrive.
RippleNet Now Reaches 40 Countries Improving Remittances and SME Payments
An over 400 percent increase in remittance inflows over the last ten years has sparked new demand for faster, low-cost global payments. Driven by emerging market economies, remittances around the world totalled over 600 billion dollars last year. Across these same regions small- and medium-enterprises (SMEs), propelled by global payment flows, were responsible for for nearly 60% of employment.
Ripple has been at the forefront of addressing this need for both the expanding global remittance market and growing SMEs in emerging economies.
As of today, RippleNet is active in over 40 countries across six continents. New payment corridors have opened up in North America, Asia, Africa, Europe and South America. This provides new access to better international payment services in markets where remitters and SMEs are in the most need.
What’s more, RippleNet’s newest corridors have a combined potential market that totals over $2 Billion in inflows over the last year:
- InstaReM and RationalFX opened up new corridors from the United Kingdom to Malaysia, Vietnam, Indonesia, Sri Lanka and Bangladesh.
- Remitr and FlutterWave established a RippleNet corridor to Nigeria from Canada, the first connection on RippleNet in Africa.
- BeeTech and InstaReM created corridors from Brazil to Spain, Italy, Germany, France and Portugal.
This year alone, global remittances are expected to reach $642 billion. This is more than three times the official government aid received worldwide in 2017. There is no doubt that access to faster, more reliable and lower cost international payments services offers a lifeline for tens of millions of the world’s poor.
For growing SMEs in many of these markets, it is difficult to secure the financing need to hire quickly and buy materials and equipment. A credit gap estimated at over $1.2 trillion is already slowing their growth and hampering economic progress.
Any further friction, due to unnecessary delays in sending and receiving payments abroad, derails an SME’s plans to expand or worse, it puts them out of business entirely. This is precisely why demand for services, like those provided through RippleNet, are so high.
RippleNet provides financial institutions that handle remittances and SME transactions in emerging markets a unique advantage, by streamlining their payment flows making them faster, more transparent and cheaper.
Remitters and SMEs across the world, and particularly in emerging markets, are no longer hampered by an inefficient global payments infrastructure. Transactions on RippleNet are instant and tracked end-to-end, allowing money to move across borders and into new markets without impediment.
Contact us to learn more about the technology behind RippleNet or to find out how to join.
PNC Bank Embraces Blockchain and Joins RippleNet
PNC Bank, a top ten bank in the United States, has joined RippleNet. PNC customers will be able to receive real-time cross-border payments.
With more than 8 million customers and retail branches in 19 states, PNC has a diverse set of customers, including consumers, small businesses and large corporates. Ripple’s technology will have an immediate impact on each of those groups, enabling PNC’s commercial clients to receive payments from overseas banks in real time.
Now, a commercial client in Pennsylvania receiving a payment from a UK buyer will be able to receive payments against their invoices instantly, transforming the way they manage their accounts receivable and allowing them to better manage their working capital.
The addition of a top U.S. bank like PNC on RippleNet fuels the network’s positive momentum. RippleNet has grown to more than 100 financial institutions and continues to expand steadily each month. RippleNet has also recently expanded its reach to over 40 countries and six continents.
Learn more about how to leverage the power of RippleNet.
How RippleNet Works - A Product Overview (2018) | Realizing the Internet of Value Through RippleNet
People and businesses increasingly expect everything in their lives to move at the speed of the web. Conditioned by smartphone and apps where nearly anything is attainable at the press of a button, these customers are often left wanting when it comes to their experiences with money and financial service providers.
This is because an aging payments infrastructure designed more than four decades ago leads to expensive transactions that can take days to settle with little visibility or certainty as to their ultimate success. This experience runs contrary to customer expectations for an Internet of Value, where money moves as quickly and seamlessly as information.
Delays, costs and opacity are especially true for international transactions. Not only are payments limited by inherent infrastructure challenges, but they must navigate a patchwork quilt of individual country and provider networks stitched together for cross-border transactions. This network of networks effectively stops and starts a transaction every time it encounters a new country, currency or provider network – adding even more costs and delays.
As a global payments network, RippleNet creates a modern payments experience operating on standardized rules and processes for real time settlement, more affordable costs, and end-to-end transaction visibility. It allows banks to better compete with FinTechs that are siphoning off customers disappointed by traditional transaction banking services.
RippleNet brings together a robust ecosystem of players for the purposes of powering the Internet of Value. This network is generally made up of banks and payment providers that source liquidity and process payments, as well as corporates and FinTechs that use RippleNet to send payments.
For network members, RippleNet offers:
Access: Today, banks and providers overcome a fragmented global payments system by building multiple, custom transaction relationships with individual networks. By joining RippleNet’s single worldwide network of institutions, organizations gain a single point of access to a standardized, decentralized infrastructure for consistency across all global connections.
Certainty: Legacy international payments cannot provide clarity around transaction timing or costs, and many transactions ultimately end in failure. RippleNet’s atomic pass-fail processing ensures greater certainty in delivery, and its bi-directional messaging capability provides unprecedented end-to-end transaction visibility for fees, delivery time and status.
Speed: Disparate networks and rules create friction and bottlenecks that slow down a transaction. RippleNet’s pathfinding capabilities cut through the clutter by identifying optimal routes for transactions that then settle instantly. With RippleNet, banks and providers can reduce transaction times from days to mere seconds.
Savings: Existing payment networks have high processing and liquidity provisioning costs that result in fees as high as $25 or $35 per transaction. RippleNet’s standardized rules and network-wide connectivity significantly lower processing costs. RippleNet also lowers liquidity provisioning costs or can eliminate the need for expensive nostro accounts altogether through the use its digital asset XRP for on-demand liquidity. The end result is a dramatically lower cost of transactions for providers and their customers.
RippleNet solves for the inefficiencies of the world’s payment systems through a single, global network. With RippleNet, banks and payment providers can realize the promise of the Internet of Value, meeting customer expectations for a modern, seamless global payments experience while lowering costs and opening new lines of revenue.
For more information on the technology behind RippleNet or to learn how to join contact us.
The Ripple Drop – Episode 5
Welcome to episode five of The Ripple Drop, a web video series covering the latest news about the company’s customers, technology, products and culture.
Next we talk to Max Nivaud, senior director for customer success, to get a better understanding of the newest corridors on RippleNet and what their payment flows look like.
Finally, VP of People Sandi Kochhar discusses Ripple’s placement on LinkedIn’s Top Startups 2018 and what makes the company stand out as an incredible place to work.
We hope you enjoy this episode, and let us know if there are any topics you’d like to see more of in the future.
Swell 2018: Wrapping Up a Historic Year for Ripple
The second annual Swell by Ripple customer conference has officially come to a close. Over the course of two days the world’s leading experts in policy, payments and technology converged in San Francisco for 14 dynamic sessions, featuring 32 speakers, on the future of payments. The event also provided an opportunity for Ripple’s customers to meet, share and establish new corridors on RippleNet.
Beginning with President Bill Clinton’s keynote address, day one of Swell featured remarks by CEO Brad Garlinghouse on the Internet of Value and Banco Santander’s Head of Innovation Ed Metzger on One Pay FX, the first mobile app for cross-border payments using RippleNet.
Policy and regulation also were a major focus in two back-to-back sessions featuring Honorable Sunil Sabharwal, former alternate executive director of the International Monetary Fund (IMF), discussing global regulatory policy and central banks on their approach to blockchain and digital assets.
Day one also featured exciting Ripple news: xRapid is commercially available and will go into production with three financial institutions.
On day two, Ripple released the first Blockchain in Payments Report during the keynote session featuring Chief Market Strategist Cory Johnson alongside Celent Senor Analyst Alenka Grealish. Key among the findings: mainstream blockchain adoption is at an important tipping point.
The rest of the day was packed with memorable on-stage moments, including talks led by customers Siam Commercial Bank’s Colin Dinn, TransferGo’s CEO Daumantas Dvilinskas and InstaReM’s Prajit Nanu and BeeTech’s Fernando Pavani. All highlighted impressive results from their use of Ripple’s blockchain technology in cross-border payments.
A dynamic discussion on the future of digital asset adoption featured representatives from Remitr, Bittrex and IDT Corporation. The panelists pointed out that cross-border payments is likely what will inspire mainstream use of digital assets and that regulatory compliance was a crucial component for adoption.
Evaluating the future of payments was also a key topic for speakers. A session led by former Ebay executive RJ Pittman offered some insight into why improving payments infrastructure will provide serious growth opportunities for the entire industry.
An impressive panel on implementing the adoption of innovative technology featured Tokunboh Ishmael, Amy Radin, and Ben Braybn and underscored the importance that new technology like blockchain can have on developing economies.
The finale of Swell 2018 was the Blockchain Innovator Awards ceremony. Cuallix, InstaReM, Siam Commercial Bank, Banco Santander, TransferGO, and the Saudi Arabian Monetary Authority were all honored for their achievements over the last year.
If you missed any of the sessions on either day or our immediate coverage, then check out our full length videos of each session on Ripple’s YouTube channel.
We hope you enjoyed the insights and coverage of this year’s event. We’re already excited for Swell 2019!
This document has been composed with the online HTML editor. Use the online visual HTML editor will help you a lot while you are working on your articles.
Ripple(XRP) - DepositPreauth is Now Available
- If you operate a
rippledserver, you should upgrade to version 1.1.0 (or higher) immediately.
For instructions on upgrading
rippledon supported platforms, see Updating
rippledon supported platforms.
Impact of Not Upgrading
If you operate a
rippledserver on a version older than 1.1.0, then your server is now amendment blocked, meaning that your server:
- Cannot determine the validity of a ledger
- Cannot submit or process transactions
- Does not participate in the consensus process
- Does not vote on future amendments
- Could rely on potentially invalid data
The DepositPreauth amendment provides users of deposit authorization with a way to preauthorize specific senders so those senders are allowed to send payments directly.
The amendment adds:
- A new transaction type, DepositPreauth, for adding or removing preauthorization.
- A DepositPreauth ledger object type for tracking preauthorizations from one account to another.
- A JSON-RPC command,
deposit_authorized, to query whether an account is authorized to send payments directly to another.
This amendment also changes the behavior of cross-currency Payments from an account to itself when that account requires deposit authorization. Without this amendment, those payments always fail with the code tecNO_PERMISSION. With this amendment, those payments succeed as they would with Deposit Authorization disabled.
The fix1515 amendment changes how Payment transactions consume offers to remove a minor difference in how payment processing and offer processing consume liquidity.
Without the amendment, payment processing gives up on using a particular path if the transaction would consume over 2000 offers from the same order book at the same exchange rate. In this case, the payment does not use the liquidity from those offers, and does not consider that order book’s remaining liquidity when attempting to complete the payment.
With this amendment, if any transaction processes over 1000 offers at the same exchange rate, the transaction consumes the liquidity from the first 1000 offers, then does not consider that order book’s remaining liquidity when attempting to complete the payment.
In both cases, transaction processing can still complete by using liquidity from other paths or exchange rates.
Related documentation is available in the XRP Ledger Dev Portal, including detailed example API calls and web tools for API testing
- If you operate a
Crypto Regulation Around the World
As blockchain and digital asset adoption around the world accelerates, so too has the conversation on how they should be treated by regulators. This critical topic was a major focus on stage at this year’s Swell by Ripple conference.
The “Crypto Regulation Around the World” session featured four regulators and policy makers: Richard Teng of Abu Dhabi Global Market; Anchari Suppiroj of Thailand’s Security and Exchange Commision; Ross Leckow, the deputy general counsel of the International Monetary Fund (IMF); and Michael S. Didiuk, the former attorney for the Securities and Exchange Commission (SEC) Office of Compliance Inspections and Examinations. The panel of speakers was moderated by Ben Lawsky, a Ripple board member and former regulator for the State of New York.
Thailand and Abu Dhabi leading from the front
Thailand and Abu Dhabi are two of the first countries offering comprehensive frameworks for the regulation of digital assets. While each country’s regulatory approach is different, both Teng and Suppiroj pointed out that governments working closely with industry is crucial. Suppiroj underscored that regulators should maintain a close relationship with industry, keeping “an open mindset” and “fine tuning along the way.” Teng agreed and believed that other regulators around the world were also adopting this approach.
If you look a year ago, I think most global regulators had the view that this asset class might go away,” said Teng. “In the last three to six months, I’d say there’s been a drastic shift in sentiment: they’re going to stay. Let’s look at the right regulation for [digital assets], and how do we approach it in the right direction.”
Teng went on to express that Abu Dhabi was in a unique position because of its ability to create and employ new rules faster than most countries. By contrast, many countries have legacy regulatory regimes within which digital assets do not fit squarely. He also stressed the importance for global regulators to understand digital assets better and to not “imagine the worst,” instead he urged understanding of how to “balance the benefits.”
Embracing tech and enforcing rules in the U.S.
Michael S. Didiuk, formerly of the U.S. SEC, said the agency like it’s Thai and Abu Dhabi counterparts was “embracing the technology.” He believes the SEC’s goal is to really understand the risks and benefits associated with digital assets. Didiuk however, believes that enforcement would be a key priority for the SEC in the future.
“In the short- to medium-term, I think you’re going to see a lot of focus on enforcement,” Diduk said to the panel. He suggested that the SEC foreshadowed its enforcement on tokens in a recent U.S. legal ruling.
Finding a global consensus with the IMF at helm
While the actions of regulators in the U.S. is closely watched by the entire industry, Ross Leckow of the IMF stressed the importance of a more global perspective. He applauded Thailand and Abu Dhabi’s regulatory stances as positive examples set for others around the world.
Leckow also outlined a stance the IMF has put forward to help global regulators navigate digital assets. He stated that it was first necessary to shift from “traditional reliance on entity-based regulation” to “a bigger focus on activity-based regulation.” Again echoing Teng and Suppiroj, he stressed the importance of governments working closely with industry to create “regulatory sandboxes” and learn from new technology.
Leckow continued that it was necessary to incorporate “proportionality” to “address the risks,” and to do so “without stifling innovation.” He said this also included incorporating potential changes to traditional legal frameworks to fully address the risks and benefits of digital assets. The last component Leckow highlighted was that IMF believes international cooperation is critical to eventually provide global regulators with a set of international best practices that currently don’t exist today.
“We certainly see the risks [digital assets] present: money laundering, terrorism financing, evasion of sanctions. But, we also see the enormous potential they have to make the financial system globally more efficient and more inclusive,” Leckow explained to the audience. “We believe that for that to happen we need effective regulation in place. Trust is the glue that holds the global financial system together and regulation is a critical component for trust.”
Unlocking Global Liquidity Bottlenecks with RippleNet
Nostro accounts are both the backbone and the bane of international banking. They are the providers of liquidity; accounts that large financial institutions hold in local market currencies on each side of a transaction to facilitate a payment. Without them, international payments would slow to a crawl.
However, nostro accounts tie up hundreds of millions of dollars that could be used for investment, lending or dozens of other more productive purposes. They create capital inefficiencies for an institution, add costs, and increase risks from counterparty and currency exchange fluctuations.
Before an institution can deliver a faster, lower cost and more modern international transaction experience, they must first address their liquidity needs. RippleNet efficiently solves these liquidity pain points for financial providers and banks using flexible solutions that address various types of liquidity provisioning. Through its global payments network, RippleNet supports three types of liquidity arrangements:
- Traditional bank-to-bank fiat relationships, also known as nostro accounts. This arrangement is supported because it can be optimal for high volume transaction corridors and uses existing bank-to-bank relationships and accounts.
- Third party fiat relationships. This allows banks to prioritize those nostro accounts that make the most sense for them, but then augment them with third party relationships that can overcome the high cost of liquidity in more expensive corridors. Banks can keep the nostro accounts they want and rely on this third party to handle their medium and lesser volume transaction corridors.
- The digital asset XRP. Financial institutions can use XRP and its inherent benefits of speed, scalability and low cost to expand reach into exotic or lower volume corridors without holding new or additional nostro accounts. XRP becomes an on-demand liquidity pool for transaction parties.
With RippleNet’s pathfinding capabilities, financial institutions can even link together multiple liquidity arraignments within the same transaction to optimize their transaction networks. The addition of XRP as a digital asset helps them be more efficient with their overall capital by funding fewer nostro accounts, lowering costs through atomic processing, and reducing risk through real time settlement and lower counterparty exposure.
This use of digital assets for liquidity purposes has proven time and money savings for providers. Pilots in the crucial U.S. to Mexico remittance corridor using XRP as a digital asset demonstrated savings of 40-70% compared to traditional costs. At the same time, it helped lower settlement times from two to three days to just over two minutes.
By solving for global liquidity needs, RippleNet allows banks and providers to focus on the speed and cost of international transactions as an end customer benefit. Ultimately, it will help unlock the full potential of the coming Internet of Value.
For more information on Ripple’s solutions or to learn how to join RippleNet contact us.
The Case for Digital Asset Regulation Part 1: How Regulation Helped Make Japan the Leading Digital Asset Market
In 2014, one of the world’s biggest Bitcoin exchanges, Mt Gox, filed for bankruptcy after the theft of more than $460m of Bitcoins. With investors losing such a large amount of money, the nascent digital asset market looked under threat. Many policymakers saw it as a sign that trading in digital assets should be banned.
Japan – the country where Mt Gox was based – disagreed with this widespread opinion. Instead it introduced new regulations to support the digital asset market and encourage more investment.
In this three-part series of posts, I will make a case for why digital assets should be regulated on a global scale. I’ll also explore how forward-thinking policymakers are driving demand while protecting customers in Thailand, Abu Dhabi and, in this post, Japan.
Regulation means legitimacy (and not everyone wants that)
Japan has a long-standing progressive attitude to digital assets and exchanges. As other major Asian economies like China and India have opted for bans, Japan boosted its position. Today around half of the world’s virtual currency trade happens there.
Despite Japan’s largely-positive example, most other countries are reluctant to introduce digital asset market regulations. Some don’t believe that the market is big or important enough to bother. Others are concerned about money laundering and risks for crime or terrorist financing associated with digital assets. Furthermore, in countries with complex FX regulations, regulators are weary of introducing new regulatory frameworks. India’s central bank for example, the Reserve Bank of India (RBI), in a recent affidavit to the Supreme Court of India suggested that Bitcoin cannot be considered as valid currency or money because of the existing Foreign Exchange Markets Act (FEMA).
Finally, lack of regulation is often encouraged by the digital asset market itself. The original digital asset, Bitcoin, was an anti-establishment reaction to the 2008 financial crisis. Regulation makes this tool of revolution a part of the system they’re trying to overthrow. When there are no rules, certain groups can profit from the chaos.
Ripple’s three-prong approach to regulation
Ripple believes in collaborating with regulators and working within the existing financial system. Ripple leverages a combination of distributed ledger technology and the digital asset, XRP, to make cross-border payments faster, cheaper and more efficient. We believe regulation will help organizations use digital assets to develop innovative solutions, while also protecting consumers who use these services or invest in digital asset markets.
Ripple has long advocated a three-pronged approach to regulation focused on use-cases, that addresses risks to consumers and also provides guidance to banks on leveraging digital assets. Japan is a prime example of how this kind of progressive and thoughtful regulation can work.
Driven by demand, enhanced by regulation
Facing early market demand for digital asset exchange investing, Japan first introduced rules in 2012 that were designed to protect retail investors. After Mt Gox, the Financial Action Task Force issued guidelines for a risk-based approach to virtual currencies that Japan adopted in a revised Payments Services Act.
Today, digital asset exchanges have to be fully licensed in Japan, while Bitcoin is the first digital asset to be accepted as legal tender. As a result of an approach that balances risk while promoting innovation, trading in the country’s virtual currency market has increased. Consumers, big business and financial institutions are now more comfortable getting involved.
It has not been all smooth sailing though. Earlier this year, the Tokyo-based exchange Coincheck was hacked, resulting in the theft of $500m of digital assets. Once again Japan refused to panic. Instead the Japan Financial Service Agency (JFSA) ordered Coincheck to improve security, but did not shut it down. The exchange has since begun compensating investors for losses, which wouldn’t have happened had it been ordered to close.
The hack also led to the JFSA issuing further revisions to make its regulations more robust and it shut down a number of exchanges that were not up to par. Japan is now looking closely at how it can regulate new issues like tech governance, wallet management and audit requirements for digital assets.
Promoting financial invocation and inclusion
While the technology behind them is complex, virtual currencies are simply just another financial tool. Like any financial innovation, they are open to abuse as long as the market remains uncontrolled and unregulated. Japan has shown that mitigating against risk in a thoughtful and incremental way will help build an exciting new market that promotes financial innovation and inclusion.
You can see the positive impact and influence of Japan’s approach in the recent introduction of digital asset regulations in Thailand and Abu Dhabi. I will explore these two cases and the opposing routes each has taken in my next post, as I continue to make the case for global digital asset regulation.