14

They use hot and cold wallets for security reasons. The address you trust can create an infinite number of IOUs and so its key must be carefully secured. The address they transferred to you from must be able to perform transactions easily and quickly and so cannot be fully secured.


13

I think it's necessary to first consider the question: Without ripple, how do banks "actually transfer money" from one bank to another? Suppose that you and I are banks, and I want to send you $10 million. I'm probably not going to actually physically ship you $10 million worth of bills and coins. Instead, there are a few ways we could do this: You and I ...


12

Any of those things can happen. Likely, there will be some "hot potato" going on as people rush to offload any IOUs they hold to people who haven't yet gotten the news. It's unlikely other gateways would honor the IOUs unless they were contractually obligated to. This would likely harm their customers as they'd have to make up the losses somehow -- likely ...


10

This question actually gets at the fundamental nature of Ripple. Ripple is essentially an online P2P implementation of free banking. Free banking is somewhat similar to how banking worked in the United States for much of the 19th Century (with a few major caveats) prior to the Federal Reserve and FDIC systems, and indeed back then banks would sometimes just ...


10

The way Ripple's public ledger system works is that you propose a payment by specifying the source and destination accounts and currencies and then the system gives you a quote based on public offers. You can then specify a maximum amount you are willing to pay to complete the payment and submit it. If the payment is possible for the amount you offered or ...


9

Doing so would subject OpenCoin to lawsuits due to promissory estoppel. OpenCoin's statement that they will not do so is effectively a warranty. And, of course, it would be a completely self-destructive thing for them to do. (I am an employee of OpenCoin, speaking only for myself.)


9

The Ripple Wiki has a section on running a Gateway. Basic summary: Determine what you will be a gateway for (e.g. bitcoin, alt-coin, fiat, collector coins, etc) Accept those items outside of Ripple (via a website, in person, via mail, etc) Issue IOU in Ripple for items received (make a Ripple payment) Publish and follow a redemption agreement; what you ...


8

There are only two known "attacks" you can perform with a large amount of XRP. First, you can dump a large amount of XRP on the market. This will reduce the value of XRP, which OpenCoin would have to report as a loss. The net effect would be that people who hold XRP as a store of value would be harmed. So if you choose to use XRP as a store of value, you ...


7

The short answer: using the info you and your friend provided, Ripple did what was best for everyone. I don't know how to pull up the details of the transaction number you link to (I have no affiliation with Ripple other than as a user). But using the Ripple Live Graph I can infer the account of your friend and I note that currently your friend has no trust ...


7

which one happens first in a gateway, (a) users pay money to gateway, or (b) gateways transfer IOUs to user? what guaranties step 2 happens? The gateway gets to set its own policies. However, the general consensus is that gateways should avoid risk because they'd have to pass losses onto their customers in the form of higher fees. So you probably shouldn't ...


6

That wouldn't really be a bad thing if they were reliable and kept costs down. But I think it's inevitable that, if Ripple catches on, small gateways will always be around at least to serve more remote and underbanked areas and populations that transnationals can't be bothered to target. However, I don't think the barrier to entry will be that high. You ...


5

The documentation does assume you will run a local server. But anyone can build a gateway, with or without the server. To operate a gateway, you really only need to be able to process transactions just like a client does. When a transaction happens you need to know. When you need to perform a transaction, you need to perform it. Probably the easiest way to ...


5

A Ripple gateway acts much like a bank. They compete based on trust, convenience, and cost. They hold other people's money. They promise to handle that money according to their customer's instructions. One difference is that there's no formal barrier to entry to becoming a Ripple gateway. Someone can open a gateway anywhere in the world and have equal ...


5

It doesn't differ. Gateways are just issuers that you somehow have more trust for, so much trust that their IOUs can basically be treated like cash. This is what happens in the current financial system, when you see $100 on your bank account it doesn't mean that you actually have $100. It just means that you hold your bank IOUs. From what I understand ...


5

There are some existing sources of information for merchants wishing to use Ripple: Brief introduction and overview of Ripple for merchants Merchant's section/pages on the Ripple wiki If you are looking for something pre-implemented and easy to add to an existing automated web commerce check-out page, there isn't much available along those lines at the ...


4

If I understand correctly, IOUs issued by different gateways are not mutually fungible, even if denominated in the same underlying fiat currency. So basically I you were to hold IOUs from a gateway and that gateway vanished, or simply refused to honour its IOUs you'd be out of your money.


4

Under Withdrawal/Ripple there is a link named "trust this address". (removed from here the address itself due to a good suggestion: don't trust what is written here, go there and have a look yourself)


4

Where can I find the address? The address you need to trust to hold Bitstamp issued currencies is available from the Bitstamp website, but as you noted, you must be logged in to see the relevant page. You can also find the address at https://www.bitstamp.net/ripple.txt under the [accounts] key. The ripple.txt file is documented here: https://ripple.com/...


4

There is no official list of Ripple Gateways because there is no such thing as an "official" gateway. Anyone can operate one without registering anywhere (other than as required by local laws in their jurisdiction). That hinders the creation of any kind of comprehensive list. There are a few people that attempt to keep somewhat comprehensive lists but their ...


4

There is a variant of viewing the transaction history at a certain address: http://ripplerm.github.io/ripple-wallet/ Dont forget to switch the network to the test in the upper left corner. Good luck =)


3

Ripple transactions are irreversible. There are no chargebacks.


3

You can issue the account_lines command to a Ripple server to find out what credit lines have been extended by or to an account. For example, you can use this websocket test page to issue websocket queries. Set the location to wss://s1.ripple.com:51233, click use secure, and then connect. Then paste this in the Message window: { "command" : "account_lines",...


3

Universal In most if not all Crypto 2.0 systems, a Gateway can: Charge the users for IOU deposits Charge the users for IOU withdrawals Ripple In Ripple, a Gateway can set a percentage fee for whenever their IOU is transferred from one user to another. Say, at 1% fee, to send someone $100, one needs to spend $101. The recipient receives $100, while the ...


2

What will happen when a gateway refuses to accept IOUs, and transfer money back to user? Then it's no longer a gateway, it's just some random user of Ripple, and nobody should do business with it. I'd only do business with a gateway that I could sue or press charges against if they reneged. Is there anything similar to 'interest rate' for holding IOUs ...


2

Ripple has no such requirements, nor could it. It is designed to function without any central authorities. A Ripple account is created just by sending a small amount of XRP to it. The account's owner authenticates using a public/private key pair. In principle, you could get USD into or out of Ripple without going through a gateway directly. You can meet ...


2

Currently, the only functional bitcoin bridge the client directly uses is operated by Bitstamp. The time until they issue a matching bitcoin transaction is completely dependant on how well Bitstamp's automation and bitcoin transaction batching is working. The Ripple side of the transaction completes within seconds. When Bitstamp is operating "correctly" the ...


2

This exact question was asked and answered on the Ripple forums. It appears as if SnapSwap doesn't give appropriate instructions on what the procedure is for sending funds into a brand new Ripple account/wallet. The general procedure is approximately this: First you send then USD via your bank and provide them with your Ripple address. Then they send you ...


2

I don't know of any service that handles all of these. You can use Coinbase to accept bitcoin. If your Paypal account deposits the fiat to a U.S. bank account, you can also use Coinbase to manually "buy" Bitcoin into the same Coinbase account. If you knew the value of your USD account, you could automate the buying of bitcoin via Coinbase API. Manually ...


2

For the same reason you'd choose one exchange over another (in general) even if the other has lower fees. Examples of reasons not related to trading fees for which one might prefer a particular exchange: Higher volume/liquidity Better ergonomics Faster trade execution Easier deposits/withdrawals (especially when fiat is concerned) More trading pairs More ...


2

You seem to start out describing the "Authorized Accounts" feature of Ripple, but then you then pivot to freezing. Authorized accounts which allows an issuer to explicitly approve which accounts may hold his issuances. The feature is described here: https://wiki.ripple.com/Authorized_accounts. The "freeze" feature Ripple allows issuers either globally ...


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