Can you make money with a ripple gateway

Ripple, is it just another new cryptocurrency riding on this big, fat Bitcoin speculation rollercoaster? For those who skim the crypto news outlets, this may seem to be the case. But the truth is, Ripple is fundamentally different from Bitcoin, Ethereum, Litecoin, and the many other members of the large coin family. You could even say that Ripple is not really a coin at all. If Ripple is not a coin, then what is the XRP cryptocurrency that is currently so hot on the exchanges? Their purpose in creating RippleNet was not to introduce another cryptocoin to the market — a means of payment between individuals, mostly — but to construct a payment network for use between financial institutions such as banks. For global finance and everyday life, it is of the utmost importance that the transfer of funds cannot only be processed within a bank, e. For these purposes, the vast majority of institutions still use the SWIFT Society for Worldwide Interbank Financial Telecommunication system that was introduced ina system with grave inefficiencies and a large overhead.

Getting Started With Ripple

Ripple gateways are businesses that provide a way for money and other forms of value to move in and out of the Ripple Consensus Ledger RCL. A gateway receives money or other assets of value outside of Ripple, and creates issuances in the Ripple Consensus Ledger. This provides a direct way for customers to get money in and out of the RCL. So we can think of it as a currency exchange. Within a month or so you will be able to use a gateway to exchange Dash on the Ripple Consensus Ledger. The RCL is basically Ripples blockchain. Dash implementation into GateHub platform will consist of three phases:. The work will be covered by a team of people. The total expense consists of compensation for the team. Other costs are negligible. Development can start within 1 weeks of the day when the Proposal is funded. Total estimated development time is one month.

What Is Ripple?

I asked the proposal owner ggololicic some questions to help understand what it was all about. What are the benefits of the project — What problem will it solve? The biggest benefit is not the technological part of the project but the reach Dash will receive being exposed to our big user base close to k users and potential of the whole network we are building for the future. Our goal is to build a network of gateways that allows users to draw upon any store of value to pay anyone, anywhere, in the currency of their choice. Gatehub currently has , users and connects to the broader Ripple network. We provide infrastructure and services needed for creating:. GateHub features: gateway admin dashboard, multi-asset ledger, instant settlement, identity management, risk management, inter-ledger support, wallet and trading client and much more. GateHub Network is a hub operated and maintained by GateHub.

We’ve already built a proof of concept that did this on the test net which has Suspended Payments support already. You can choose to buy at the current market rate or place a limit order. I was reading some news feed, and I saw an article about Bitcoin, this new currency. In the event that you are not sufficiently fortunate to detect a giveaway, or excessively anxious, making it impossible to sit tight for one, you can discover another person to purchase XRP from. The immediate shared system disposes of the center man and in this manner all the cost of sending cash electronically. It felt like there was a little bit of science there. You could even hypothetically exchange things, for example, visit flier miles for dollars. It’s what they’ll use to send you funds. This is difficult, however, because every bank has to maintain debt with every other bank. Rippex: The market here is small when compared to Europe or the US. So how would you mine Ripple?

Gateways Explained

We want to make it easier to put money inside and outside of the Ripple network. The craziest part? If it’s the case that it holds on to XRP for any period of time, I don’t know how it could responsibly gauge how long manage holding such a volatile asset. We’ve already built a proof of concept that did this on the test net which has Suspended Payments support. How Rilple actually transfer money from one bank to riople It goes about as a mediator between different monetary forms when requiredand assumes a part in security ex: ensuring against tateway. There was no going back. David Schwartz David Schwartz You can choose to buy at the current market rate or place a limit order. But even meager mechanical computers made it seem antiquated. I don’t send you the money, just an IOU. Rafael: I like wine [laughing].

By using our site, you acknowledge that you have read and understand our Cookie PolicyPrivacy Policyand our Terms of Service. How does bank A ylu money in the Ripple network? Does it need to buy XRP from some gateway? How will bank B convert to pounds? Does it need to find a gateway? Gatewwy if the exchange rate at this gateway is terrible for him? The way Ripple’s public ledger system works is that you propose a payment by gateaay the source and destination accounts and currencies and then the system gives you a quote based on public offers.

You can then specify a gqteway amount can you make money with a ripple gateway are willing to pay to complete the payment and submit it. If the payment is possible for the amount you offered or less, the payment succeeds. Otherwise it fails and you can try. Ripple uses pathfinding to figure cab how the payment is possible, if it is.

Essentially, it looks for a chain of market makers or currency traders willing to put together a trade where one of them gets the asset you’re paying with and one of them provides the asset you’re paying. In the short term, to ensure payments work, banks typically do the very same thing they’re doing. They put exchange offers into the system the same way they would if they didn’t have Ripple. The bank irpple net their payments with other people’s payments so that the cost drops for.

I think it’s necessary to first consider the question: Without ripple, how yku banks «actually transfer money» from one bank to another? Instead, there are a few ways we could do tipple. I don’t send you the money, just an IOU. We keep track of who owes who how much, but might never actually need to resolve it, since in the wih run we’re both sending a lot of money back and forth.

This is difficult, however, because every bank has to maintain debt with every other bank. You and I make an arrangement through witth mutually trusted third party.

A «wire transfer» in the US is just this, where the third party is the Federal Reserve. This dan party isn’t a middleman who holds debt, like the central bank described in 2 — it simply keeps track of IOUs and regularly announces to all parties who owes who how. So, for the most part, bank’s don’t actually caj money to each other at all — they just keep track of who owes who how.

Actually settling those debts, if it happens at all, has to happen outside of the systems. Ripple, as I understand it, can be thought of as a decentralized version of 3. It’s basically a distributed public ledger of IOUs. And those IOU’s can themselves be traded as currency, when they’re written by a trusted party. That rate would be publicized off-ledger, potentially through a standardized API. We’ve already built a proof of concept that did this on the test net which has Suspended Payments support.

Therefore once the transaction is complete the receiver would have already exchanged the XRP to the desired currency at the agreed upon rate. In other words, due to the near instantaneous speed of Ripple the agreed upon rate would have been achieved at the completion of the transaction. Based upon this understanding Bank B does not have to «find a gateway» or worry that «the exchange rate withh this gateway wjth terrible» because this has all been resolved and agreed to prior to the transaction and achieved omney the completion of the transaction.

So I just found this discussion through Google, and I want to thank everyone here for doing a good job explaining the utility of Ripple. However now that I feel like I understand Does anyone else think that the conversation above really just makes the current banking system and therefore Ripple sound completely male Ripple to me sounds like the equivalent of the slide ruler. Noney it was great for a while during a brief period where mankind hadn’t quite gotten over the old ways of doing things.

But even meager mechanical computers made it seem antiquated. Then electric calculators were invented — and slide rulers disappeared overnight.

Oh, and why can’t banks just make their own network now and remove the middle man? Home Questions Tags Users Unanswered. Ca Ripple actually transfer money from one bank to another? Ask Question. Asked 2 years, 10 months ago. Active 2 years ggateway. Viewed 10k times. Cxn Leandro 81 1 1 silver badge 5 5 bronze badges. This still gives them many advantages: The payment is instantaneous and the receiving bank knows the instant the payment occurs.

If there are cheaper paths than the regular one the bank would use, it mondy be taken. There’s flexibility to use multiple paths for a single payment. David Schwartz David Schwartz I understood how the transfer is. But how bank A gets money in and bank B gets money out of the Ripple network? Reading here bitcoin. The banks could operate as gateways themselves. They could also have gateways that operate accounts at that bank. They can also do it exactly the way now and use the ledger just as a way to do distributed confirmation and dan.

One way it is currently happening is the bank extends credit to a gateway. That allows any Ripple payment that can gou an asset issued by that gateway to result in a credit to a customer at that bank and vice versa for outgoing payments.

Just to try rpiple get some clarity around. If a bank were to act as a gateway itself, does it necessarily end up holding onto XRP for long periods of time? Or is XRP just a momentary utility whose purpose is to validate a secure transaction so the bank can near-instantly decrement it’s holdings in 1 currency and increment holdings in another?

If it’s the case that it holds on to XRP for any period of time, I don’t know how it could responsibly gauge how long manage holding such a volatile asset. Especially the first few banks to join RippleNet. Josh Josh 3 3 bronze badges. This seems much easier to get than the accepted answer. Except it’s not correct. The movement of XRP does actually settle the debts. I understood the question as being about RCL.

Reading over it again, it could be about ILP. The mechanism is similar — someone accepts the sending asset and someone provides the receiving asset and the system arranges the intermediary transfers to everyone is happy.

Thank you! I think this must be allowed be yok central banks, right? There are several different flows, but the general ideal is that the ownership of funds already at the bank changes.

For example, some money that previously belonged to one of the bank’s customers that was stored at the bank now belongs to the bank. Tom Splittstoesser Tom Splittstoesser 1. If you think cryptocurrencies remove the need for banks, then you don’t know why banks were invented in the first place. Would you store all your lifetime savings in your laptop? Of course not. Leandro — If you subscribe to philosophies of distributed systems, you certainly.

Ironically, I think it’s you that haven’t grasped the point of distributed networks. Because all of our laptops would be playing by the same cryptographic principles, unable to convince the system to play any differently. Sign up or ripplf in Sign up using Google. Sign up using Facebook. Sign up using Email and Password. Post as a guest Name. Email Required, but never shown. How to create micro-interactions with react-spring: Part 1. This week, StackOverflowKnows syntactic sugar, overfit or nah, and the….

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When Brad Garlinghouse, the CEO of Ripple, has to explain to his mother, who lives in Kansas, what his company does, he says, «Mom, it’s pretty simple. We sell software to banks. But it isn’t quite that simple.

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Most fintech startups fall into one of two camps: those that want to compete with banks and those that want to save banks from themselves. Ripple is the rare exception that wants to do. The San Francisco startup, which began years ago by launching a cryptocurrency but has since turned its attention to business applications for blockchain technology, can easily prove its bona fides in the second camp. The fact that 60 banks are now in the process of commercially deploying Ripple’s enterprise software—among them Santander, Royal Bank of Canada and Mitsubishi UFJ Financial Group—reflects the company’s incumbent-friendly approach. And yet the company’s larger vision—to build an «internet of value,» a global internetworking system for money—would be tremendously disruptive to the status quo of international banking. In this system, monetary value could flow seamlessly from a bank ledger to a public blockchain to a mobile money system—all interoperable and working together to move money from one side of the globe to the .