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8

You can't get money on the Ripple network unless you trust someone to owe it to you. To have $100 in the Ripple network, someone must owe you that $100. If you haven't chosen to trust anyone to owe you money, nobody can owe you $100 and thus you can't have any money. So when you give money to a gateway, you must allow them to pay you in IOUs. And if someone ...


7

There are two very important concepts here: You can only be hurt by someone you chose to trust. A chain only exists instantaneously while a payment is made. The answer to your question depends on whether David pays Charlie or not. If David pays Charlie, then David gets hurt because he trusted Eve and she betrayed him. If David doesn't pay Charlie, then ...


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 ...


2

Not with its consensus mechanism: you need the scarce ripples to prevent abuses to the network precisely from spam and DoS. But there is the older two phase commit design to implement the ripple concept as a decentralized protocol (that wasn't implemented) and didn't need ripples or any kind of "HostCoin": http://archive.ripple-project.org/Protocol/...


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