Escolar Documentos
Profissional Documentos
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Version1.983
byAndrewWhite
andrew@onemilliongateways.com
twitter@OMGateway
Copyright2014AndrewWhite
HelloandwelcometotheRippleExplainedGuide.Mymissioninlifeisto
helpmakeotherpeoplesuccessfulintheareastheycareaboutandI
hopetheinformationcontainedhereinisabletotranslateintoyourown
successwithunderstandingRippleandmanyotherdetailsofdigital
currencies.
MymaingoalforthisbookislargelynontechnicalandItrytoexplainthe
mostimportantconceptssothatyougetthemostvaluableinsights
possiblefromthistechnology.Iliketotellpeopleunderstandinghow
everythingworksisnotarequirementtoinvestinaRipplebasedasset.
Therearealotofcomplexthingsinlifethatdonotrequiredafull
understandingofhowitworks.Youcanstilldriveacarwithoutknowing
theexactdetailshowthetransmissionworks.Feelfreetoskipoveranyof
thetechnicaldetailsdonotinterestyou.
Iapologizeinadvanceifthereisanythinginthisbookthatistootechnical
ortoocomplicatedandIhavedonemybesttoreducejargontoa
minimum.Ifthereisapassageinthisguidethatdoesnotseemtomake
senseoristoocomplicatedIaskthatyoudontgiveup,keepreadingand
comebacktoitlater.Takeyourtimewitheachsectionandsupplement
yourlearningwithGooglesearchestohelpgettheanswersontermsor
areasofinterest.ThroughoutthetextIincludelinksforyoutofollowupon
forfurtherresearch.Whenyouaredonelearningalltheinformationbelow
dontbesurprisedifafterreadingthisguideyoubecomethegotoexpert
aboutRippleinyoursocialnetwork!
InmyopiniontheRipplepaymentsystemisoneofthemostexciting
technologiestobedevelopedinrecentyears.Forthefirsttime,payments
canbesenttoanyoneintheworldinanycurrencywithinafewseconds.I
describeRipplelikeemailformoney.Butevenbetterthanthatisthat
activitiesthatwereoncethesolepurviewofthebankingindustry,suchas
lendingormakingpayments,havebecomedemocratizedintheRipple
system.Themyriadopportunitiesandchallengesthesenewoptionsbring
Copyright2014AndrewWhite
tothemassesopenawholenewsetofpossibilitiesforthediscerning
entrepreneurorinvestortoconsider.Thisebookpresentsabriefoverview
ofbusinessopportunitiesintheRippleecosystemandwhatrolesyoucan
playinthisexcitingnewareaoffinance.IhavebeeninvolvedwithRipple
sinceearly2013andIhaveexperiencedallofthedifficultproblemsof
tryingtowrapmyheadaroundhowitworkedbeforetheirwasany
literatureonthesubject.AfterawhileIwasinvitedtobeginbusiness
developmentfortheInternationalRippleBusinessAssociation,a
standardsorganizationforbestpractices,andIbegantalkingtopublic
aboutRipple.IquicklyrealizedthateveryonehadthesamequestionsI
hadwhenIwasfirstlearningaboutit.Insteadofansweringthesame
questionsoverandoveragainIthoughtIshouldwriteaguideforthe
averageinvestororbusinessuserwiththosequestionsansweredahead
oftime.ThisbookisthatresultthatIaddtofromtimetotimeeitherwith
newconcepts,betterexplanations,orjusttidyingup.SoonthatnoteI
wanttocoverthemajorcomponentsofRippleasitexiststodayanddive
deeperintoeachtopicbutwithoutgettingintoallthegrittytechnical
detailsthatmayexplainbutnotbetterinformyouofalltherelevant
information.ThisbookwasstartedinDecember2013inadozenpages.
Overtimeithasexpandedto50pagesandmyintentismakeyou
conversantinthemainareasofRippleandinviteyoutocontinueinyour
ownareaofresearch.Forafinalcaveat,thisbookisonlyforeducational
purposes,andisnotintendedtoprovideinvestmentadvice.
Bestwishes,
AndrewWhite
Acknowledgments:Iwouldliketothankthefollowingpeoplewiththeir
helpinthisdocument:FredLaughterforediting,RippleLabsfor
permissiontoreusetheirimages,andtheRipplecommunityformaking
valuablefeedbackandsuggestions.
Copyright2014AndrewWhite
TableofContents
WhyDigitalCurrency?
CounterfeitingProblem
CounterpartyRisk
ByzantineGeneralsProblem
RippleLabs
Digital
Wallets
Whatare
Ripples
?
Whatare
Gateways
?
Whatis
Consensus
Whatdo
Validators
do?
WhatareCreditsand
CurrencyIOUs
Pathfinding
Traders
Whoare
MarketMakers
?
Enterprises
DueDiligenceQuestions
IntheFuture
ImportantRippleInfrastructure
FAQs
Glossary
Copyright2014AndrewWhite
WhyDigitalCurrency?
BeforewegetintowhatRippleisIwouldliketoprovidesomebackground
informationaboutwhatcurrencyisandwhatishappeninginthehistoryin
themakingwithcurrenciesingeneral.
Therearethreebasicreasonswhydigitalcurrenciesaresoimportant
today:theysolveproblemsoffraudand
counterfeiting,counterpartyrisk,
andsuccessfullyrecoveringfromfailures.
Iwouldliketobeginbydefiningwhatacurrencyis,anditisusually
definedtohavethefollowingsixtraits:
Durability,portability,divisibility,
uniformity,limitedsupply,andacceptability.Someoneelse(Ihavenot
beenabletofindthenameoftheoriginalauthor,ifitisyouletmeknow
andIwillcredityou)explainedtheseinthefollowingmanner:
Acceptability:Intermsofaformofcurrencybeingacceptedwithin
society,moneymustbeacceptedbyeveryoneintheeconomy.This
acceptanceisforthepurposeoftheexchangeofmoneyforgoodsand
differenttypesofservices.
Divisibility:Thisrelatestomoneybeingeasilydividedintosmaller
denominationsfortransactionalpurposes.Peoplewillonlyneedasmuch
Copyright2014AndrewWhite
moneyasisnecessaryfortheirpurchases,thereforeitisnecessaryfor
moneytobeeasilybrokendownfordifferenttypesoftransactions.
Durability:Thissimplyreferstothephysicalwearanduseofmoneyover
aperiodoftime.Ifsomemoneyiseasilydestroyedordamageditislikely
thatitisfraudulentandthereforecannotbetrusted.Yet,moneyismade
fromapapersource,sosomewearandtearmustbeexpected.
Limitedsupply:Inorderformoneytoretainitsworth,theremustbeatype
oflimitedsupply.Themoremoneythatisincirculationthelessitisvalued
bytheeconomy.
Portability:Quitesimplyitisnecessaryformoneytobeeasilytransported
sothatpeoplecancarryitaroundwiththemonadailybasis.Thisalso
allowsfortheeaseoftransactionsothatmoneycanbetransferredfrom
oneplacetoanother.
Uniformity:Dependingonthedifferenttypesofcurrencythatare
available,moneywithinthatspecificcurrencymustlookthesame.This
alsoallowsformoneytobecountedandmeasuredaccurately.
Analternativewayfordistinguishingthecharacteristicsofmoneyisthatit
iseasilyrecognized.Moneyissubjecttothetypeofcurrencythatisin
circulationwithinaspecificplace,soifitiseasilyrecognizedanditfollows
theabovecharacteristics,thenitislikelytobegenuine.
So,inpursuitofthisnewparadigmshiftoffinancesbasedon
cryptographywehaveseenasurgeofrecentdevelopments.
Thechartbelowdescribesmanyofthem:
Copyright2014AndrewWhite
Asyoucansee,thereallsortsofchoicesavailablewithdigitalcurrencies.
Allofthesesystemsarecreatedbydifferentgroupsofpeopletosolvethe
kindsofproblemsthattheythinkwillgetpopular.Inthisebookweare
goingtofocusonhowRipplesolvestheseproblemsbecauseIthinkitis
thebestchoiceoutthereforthemarketrightnow,butIencourageyouto
researchhowandwhytheotherswereinvented!
Sonowthatyouknowwhydigitalcurrenciesexistandwhatthedifferent
optionsare,letsseewhytheyaresoimportant.
Copyright2014AndrewWhite
CounterfeitingProblem
IrecentlygotbackfromaconferencecalledMoney2020thatbrings
togetherbankers,thepaymentsindustry,andcryptocurrencyadvocates,
andIhadadiscussionwithafriendthatexplainedtheimportanceof
digitalcurrencyintermsofhumanhistoryandIwouldliketorelatethat
storyhere.
Historicallyspeaking,ofthesixtraitsofmoneywedescribedabove,only
thephysicalmetalgoldhasallofthesetraits.Ithasbeenusedas
currencyforthelastfivethousandyearsandoneofthemainreasonsfor
thisisthatgoldmetalhascharacteristicsthatmakecounterfeitingit
impossible.Forcenturiesbeforethescienceofmaterialsandchemistry
wasunderstood,aprofessioncalledalchemyattemptedtotransformbase
metalslikeleadintogoldandmakeagoodlivingconvincingkingsthey
couldperformthistrick.Welltheywerenonetoosuccessfuland
eventuallywiththemoremodernscienceofchemistryitquicklybecame
understoodthatthiswasindeedanimpossiblefeat.
Howeverthepropertiesthatmakegoldagoodchoiceforamediumof
exchangealsomakeitproblematicforeconomicreasons:goldcanhave
substantialweight,itsdifficultandorexpensivetosecure,sendingitto
someoneelseisdifficulttodosecurelyorinatimelymanner,andthere
simplyisntenoughofitfortheworldsexpandingpopulationasonlya
finiteamountcaneverbeminedoutoftheearth.Infacttheamountthat
haseverbeenfoundcanbeplacedwithinthelegsofthe
EiffelTower
!
Thusitbecamepopularinrecentcenturiestorepresentgoldinpaper
moneywhichiseasiertotransportanddocommercewith.Counterfeiting
paperbillshasbeenalongstandingproblem.
Copyright2014AndrewWhite
Sotoassurepeopleoftheintrinsicvalueofthepaperbills,thefacevalue
ofthedollarswasbackedbythegovernmenttoredeemacertainamount
ofgoldorsilvertothenoteholder.Howeverasmostpeopleknow,this
createsanadditionalproblemascounterfeitingpapermoneyiseasy.
Famously(orinfamouslyaccordingtosome)in1972,RichardNixontook
theUnitedStatesoffthegoldstandardandpeggedthevalueoftheUS
dollartoanewmeasureofeconomicfitnesscalledtheGrossNational
Product(wewontgetintoallthereasonsforthisbutitisoneofthekeys
tounderstandingglobaleconomics).WiththeGNPthevalueofthedollar
begantobecreatedindigitalsystems.Inthepresentdaythishasevolved
somuchthatsomeeconomistsbelievethatelectronicsystemsmakeup
95%ormoreofallmonetarytransactions.Thishasbeengoodforsociety
becauseitmakesthecostofusingmoneylowerforeveryone(andthats
agoodthing).Inthelastcoupleofdecadescreditcardsareoneofthe
mostfrequentlyusedtoolsfordoingthis.Creditcardswereinventedin
thetimebeforetheInternet(WesternUnionstartedacardprogramin
1921!).Howeverasmostpeopleknowtheunderlyingproblemsofearlier
generationsofcurrency,fraudulentuseofthetoolisaveryexpensive
problemthattheincumbentplayershavenotbeenabletofixandabout
1%ofallcreditcardtransactionsarefraudulent.
Nowfastforwardto2009,Bitcoinwasreleasedwithasolutiontothe
problemofhowtomakeadigitalcurrencyandbepracticallyimpossibleto
counterfeit.
Bitcoinwasasignificantadvanceinthetechnologyofpaymentsbecause
itusessomespecialapplicationsofmathandcryptographytomake
counterfeitingitnearlyimpossible.Thisiswonderfulformerchantssince
thehighcostsofhandlingfraudulenttransactionsiseliminated.
Understandthatthenearimpossibilityofbeingcounterfeitedisthekey
reasonforthegrowthofBitcoinstylecurrenciesonline.Itisnearly
impossibletocounterfeitforreasonsthatwillbeexplainedlaterbutthe
Copyright2014AndrewWhite
mainreasonisduetotherelianceonaparticularmathfunctionof
cryptography,moredetailscanbefoundintheFAQattheendofthis
book.Proponentsofdigitalcurrenciesthatunderstandthisclaimthatthis
makesdigitalcurrenciesabetterstoreofvalueandexchangethangold,
whichisanaweinspiringleapinhumanprogressifthepremiseholdsto
betrueforasufficientlylongperiodoftime.Onlytimewilltelliftheclaim
standsuptoscrutiny.Nowthatweunderstandthebasicreasonstojustify
apeertopeerdigitalcurrency,thesamepropertiesthatmakedigital
currenciesafraudproofmeansofmakingtransactionshasbeen
expandedbytheRippleprotocoltobuildapeertopeerexchange.
CounterpartyRisk
Nowthatweunderstandhowdigitalcurrenciessolvesthecounterfeiting
problemletsmoveontocounterpartyrisk.Wealreadydiscussedgold
andhowitisintrinsicallyafinancialinstrumentduetoitstraits.Theother
reasonwhythisissoisbecausephysicalgoldhasnoneedfora
counterparty,itisinherentlymoney.Counterpartyriskisthe
riskthateach
partyofacontracthavethattheotherpartymaynotliveuptoitscontractual
obligations,suchasdepositingmoneywithathirdparty.Nativedigitalcurrencies
likeBitcoinandRipplesXRPdonothavecounterpartyriskbecauseyouownthe
secretkeystoyourcurrencyinasimilarfashiontoowninggold,youarenot
beholdentotrustingthirdpartiesforyourbalancesheet,andthatisaninherently
beneficialaspectofdigitalcurrencies.Priortonowalmostalldigitalcurrency
systemswerecentrallycontrolledandthecontrollingorganizationscando
whatevertheywantwithyourfundswhichlogicallyhasinherentcounterpartyrisks
associatedwithit.
ByzantineGeneralsProblem
Copyright2014AndrewWhite
Thisbizarresoundingproblemhasa
longacademichistory
thatisquite
fascinatingifyouareinterestedinacademicresearchproblems.Whatit
boilsdownissolvinghowdistributednetworkslikeapaymentssystem
reconcileinaccurateandfalsemessagestocometoanagreementona
matterthatistruthfulandaccurateupuntilacertainthreshold.Foran
elementaryexampleofwhatthislookslike,youandyourgroupoffriends
wanttogosomewherefunbutyouhavesomefriendswithquestionable
motivesofwhatsomethingfunmightentail.Soyousetupasimpletest,if
sixoutoftenfriendsagreethatadestinationmeetsyourstandards,you
agreetogoalongwiththeride,butifonlyfiveorlessagree,yourejectthe
invitation.ThisisaveryinformalwayofdescribingtheByzantine
GeneralsProblemanditiscriticaltohowsystemslikeBitcoinchanged
worldhistorybyapplyingthissolutiontoadecentralizedpaymentssystem
(moreaboutthatlater).
RippleLabs
Firstletsstartwithadefinitionofterms.Rippleisthenameofanew
paymentstechnology.RippleisdevelopedbyacompanynamedRipple
LabsInc.inSanFrancisco.Somepeoplemakethemistakeofequating
RippleandRippleLabstobethesamethingandthatisamistakeyou
shouldavoidmakingasIwilltrytoexplainwhythatisthroughoutthis
ebook.SooriginallythecompanywasformedasOpencoinInc.in2012
andlaterreformedin2013byChrisLarsen,JedMcCaleb,David
Schwartz,andafewothers.RippleLabsownstheintellectualpropertyof
theRippleprotocolandtheRipplenamebutthecodeandprogramsthat
makeupRippleareavailableforfreeforanyonetodownload,use,and
modifyastheyseefit.RippleLabssoftwareisusedbyacommunityof
Rippleenthusiastsaroundtheworldwhoarepassionateaboutmakingthe
technologymorewidelyused.Thesepeoplealsoprovideessential
feedbacktoproductteamsandengineersleadingtheoverall
Copyright2014AndrewWhite
implementationofRipplesdevelopment.TheknowninvestorsinRipple
LabsincludeGoogleVentures,AndreessonandHorowitz,Lightspeed
Ventures,BryanBradford,andothers.AsofFebruary2015,RippleLabs
hasastaffofaround100peopleledbyCEOChrisLarsen.Mr.Larsenis
theformerCEOofELoanandlaterProsper.com,bothofwhichwere
pioneeringcompaniesinpeertopeerlending.Youmaynotofheardof
ChrisbeforesoIwillaskyouifyouknowwhatyourcreditscoreis?Ifyou
doyoucanthankChriswhoin2001successfullylobbiedthe
California
legislaturetoforcecreditbureaustorevealscorestoconsumers.There
arealmostnobusinessleadersintheworldoffinancetodaywhocan
claimtohaveactuallymadeapositivecontributiontothewaylendingis
done.
Asanoutsider,IcantsayanythingdefinitiveaboutRippleLabsspecific
businessstrategies.Buttheiractionsshowthattheyarecommittedto
increasingthevalueoftheRipplenetwork.Theydothisthroughavariety
ofstrategiestoshowthepublicthatRippleprovidesabettersystemfor
paymentsthanthealternatives.Oneofthewaysofaccomplishingthisis
bymakingusefulsoftwareandgivingitawayforfree.Thesourcecodeof
thesoftwarefromRippleLabscanbereadandusedbyprogrammersat
nocharge,whichisanopeninvitationforcuriousengineersand
programmerstomakecontributionstothecodeandexpeditethe
developmentofthecorefunctionality.Thisalsoprovidesavaluablesafety
mechanism.Sincemoreeyescanlookattheunderlyingcode,potential
issuescanbeidentifiedandfixedearly,beforebecomingaseriousissue.
RippleLabscangiveawaythesoftwareforfreebecausethecorevalue
propositionofRippleisthatanopenpaymentnetworkthatanyonecan
useandimproveismorevaluablethanaclosedalternative.Sofarthe
planseemstobeworkingwellandRippleisstartingtomakebigwaves.
OneofthebestusecasesforRippleisforusebycentralbankstosettle
currencytransferstomemberinstitutionsinrealtime.
Copyright2014AndrewWhite
IfwelookatthehierarchyoffinancialservicesintheUnitedStates,Ripple
isdesignedtoreplacetheAmericanClearinghouse(ACH)payment
settlementsystemandinternationalpaymentssettlement.ACHwas
inventedinthepreInterneteraandisamajordragontheefficiencyof
movingmoneysinceittakes35daystomovemoneyanditdoesnotuse
anytransactionverificationlikedigitalsignaturestodeterfraud.Another
systemthatEuropeanswouldbefamiliariscalledSepa.Sepaisanewer
protocolforpaymentmessaginganditworksalotbetterthanACHbutUS
banksdontuseitdomestically.SepaisfasterthanACH,sameornext
daypaymentsisthenormandothercountrieslikeChinaandMexicouse
asimilarsystem.ButwhereasSepaisspecificallyapaymentmessaging
protocolandnotapaymentsettlementprotocolitstillinvolvesalotmore
workforfinancialinstitutionstolearnwhohaswhat.Rippleoffersa
solutionthatoffersrealtime(aboutfivesecond)paymentsettlementand
paymentmessaging(thatmightbeastatementthatlookslikeThis
paymentisforBobsnewshoes).SinceRipplecombinesmessagingand
settlementsomesmartpeoplehavebeencallingitSwift2.0butRippleis
Copyright2014AndrewWhite
reallyalotmorethanthat.Sowiththatinmindletsdiverightinto
experiencewhatusingusingtheRipplepaymentsystemlookslike.
Wallets
Touseanonlinepaymentssystem,peoplestartbycreatingadigital
versionofawallet.Awalletconsistsofanameofwhoownsthewallet
andsomesortofsecuritymechanism,likeapassword,tolimitaccessto
theaccount.Itshouldbeimportanttokeepinmindthatnotallwalletsare
createdequally.Manytraditionalonlinewalletsolutionsallowthemselves
theprivilegetocloseyouraccountforanyreason.Theirareavariety
reasonsforthisbutaRipplewalletisdifferent,itisimpossibleforanyone,
includingthemakersRippleLabs,tostopsomeonefromaccessingtheir
Ripplewallet.Iwillexplainabitmoreabouthowthatworkslaterbutfor
nowletsmoveontowhatthewalletlookslike.
Therearetwowaystoidentifywhoownsawallet.Thefirstiscalleda
Ripplenameanditlookslike~SomeRandomWalletName.Anyonethat
knowsthiswalletsnamecansendpaymentstoit.Underthehoodthe
nameistiedtothepublicnameoftheRippleaddressthatbeginswiththe
lowercaserandlookslikethis:
r3CxMDQFX1Atq1vQN5sqVsjm3rawGSwd32(note:donationstothe
authorarewelcome!).
Copyright2014AndrewWhite
ThisisanexampleofwhataRIpplelookslikeavailableat
https://www.rippletrade.com
ARippleaddressshouldbethoughtoflikeaphysicaladdresswheremail
(orpaymentmessages)canbedelivered.Thepasswordshouldbe
thoughtofasthekeytoopenthedoortothehouse.Inthepriortwo
sentencesIjusttaughtyouthebasicsofpublickeycryptography,feel
freetoGooglethatformoreinformation.
Sothewalletisalwaysavailableonawebpageandhasthefollowing
functionality:wallettransactionhistory,anaddressbook,asectionto
sendandreceivepayments,andasectionofthewalletforyoutomake
currencytrades.Andthatisaboutit.
ItisimportanttonotethatRipplewalletsarenotinsuredbytheFederal
DepositInsuranceCorporation(FDIC),whichwascreatedbytheU.S.
governmenttoprotectconsumersfrombankfailures.
Formostconsumers,thepowerofRipplepaymentshappenswhen
paymentsaresentacrossthenetworkwithinafewseconds.Toanyone
accustomedtotheslowandcumbersomeprocessoftraditionalpayment
networks,thisisanincredibleadvanceinpaymentstechnology.Nolonger
dopeopleneedtowaitfordaysforabankwiretransfertobecompleted,
Copyright2014AndrewWhite
orweeksforacreditcardpaymenttobeprocessedwithRipple,havingto
waitforpaymentprocessingisathingofthepast.Eveninareaswith
modernbankingsystems(likeEuropeandChina)withsamedaybank
transfers,theexistingpaymentsystemisstillarelativelyslowandcostly
processthatcreatesanunnecessarydragontheeconomy.Justimagine
whatkindoflowcostnewserviceswillbecomeavailablewithRippleto
merchants,consumers,andinvestorsacrosstheentireglobaleconomy.
Asfarasmostusersareconcerned,theRipplewalletisalsowhere
magichappensinitsroleinredefiningthepaymentexperiencearound
theworld.Tobehonest,inmyopinion,walletsarenotallthatinteresting
visually,orconceptually,norshouldtheybeparticularlyinteresting.They
aredesignedtobeassimpleaspossiblehencethereisntmuchtoseeor
doinaRipplewallet(withtheexceptionoftrading).
IliketodescribeRipplewalletsusingthefollowingexamplebutitisnota
preciseanalogy.IjustmentionedthatRipplewalletsarenotFDICinsured
becausetheyarenotissuedbyaU.S.charteredbank.Allowmeartistic
licensewiththefollowinganalogy:aRipplewalletiskindoflikeabank
accountbutyouasthewalletowner(accountowner)areempoweredto
controlhowmuchmoneyyoutrusttobeheldbyyourvariousbanklike
entities(gateways,moreaboutthemlater).
RippleWalletsaregreatbecausewhentheycanstoreormakepayments
inanycurrency.Theauthorcantthinkofanyotherwalletevercreated
thatisabletoacceptanycurrencyevercreated,includinggovernment
issuedcurrenciesandprivatecurrencies!Forthefirsttimeinhistory,
digitalwalletuserscanholdanycurrencyeverissued.ThisisaBigIdea
thatmaytakeyearstobewidelyunderstood,appreciated,andaccepted
bythemarket.
WhatareRipples?
Copyright2014AndrewWhite
RipplesareaccesstokensusedbytheRippleprotocolandare
referredtoacurrencycodeofXRP(whichislikeUSDorBTC).The
protocolconsistsoftherulesofhowRippleworksandtheserulesare
translatedbyprofessionalprogrammersintosoftwaretoperformallthe
functionsthatRippledelivers.Moregenerally,peoplemakeprotocolsto
solveaprobleminaconsistentandentirelyreliablemanner.Well
designedprotocolsshareanumberoftraits.Forexample,thinkofthe
protocolofshakinghandswhengreetingsomeone.Thisprotocolhas
becomeinstantlyrecognizableworldwide.Itsnotabletraitsarethatitis
simple,easilyreproducible,andcooperativeinnature.Thebestcomputer
protocolsandmonetarysystemsaimforsimilarresults.
Ripplesconsistentwithinternationalcurrencynamingconventions
(believeitornotthisisinfactanISOstandard!)andareknownbyathree
letteracronym,comparabletohowUSdollarsarerepresentedasUSD.
ThethreelettercodeisXRP.TheRippleconcepthasbeenaroundprior
toRippleLabs.Itwasfirstworkedonin2004andlateronin2011the
coreteamaroundRippleLabswasformedwhothenreleasedittothe
publicinthebeginningof2013.EverytimeyouuseRipple,areallytiny
amountisdeletedtomakesurethenetworkdoesnotgetoverloadedby
paymentmessages.Thelogicisthataverageconsumersmightonlyneed
tousearelativelyfewRipplesacrosstheirentirelifetime.Ripplewas
releasedwithahardlimitof100billionunitsofXRPtoeverexist.The100
billionnumberwasjudgedtobelargeenoughtobeusefulfortheRipple
networkforhundredsofyears,andquantifiableenoughtoprovidea
businessmodelforRippleLabs.
OnceRippleswerecreatedthenextstepwastofigureoutthebestway
onhowtodistributetheminthemosteffectivemanner.Itiscriticaltothe
RippleLabsbusinessstrategythatXRPbedistributedtoawidenumber
ofmarketparticipantswhointendtouseRippleasasystemforpayments,
currencytrading,orassetissuance.AcoolfeatureofXRPisthatasthe
nativecurrency(Ilikethetermmetacurrencybutitisnotascompletely
obviousastowhatthatmeans),XRPcanbespenttosend(orreceive)
Copyright2014AndrewWhite
anyothercurrencyofferedforsaleinsidetheRipplenetwork.RippleLabs
alsosellsbulkquantitiesforlargeordersandgivesawaysmalleramounts
forfree.InlargeparttheirtargetmarketarebankstouseXRPtomake
interbankpaymentsandfacilitateinternationaltrade.
SonowthatwehavecoveredabitofhowmuchXRPthereis,whatitis
usedfor,andRippleLabsroleinthedistributionofXRP,letsmoveonto
investmentopportunitiesinthespace.
TherearedifferentinvestmentstrategiesinvolvingRipplesandalarge
numberofpeopletradethemagainstothercurrenciesforspeculation.
Beforegettingintothevariouschoicesavailable,Iwouldsuggestwould
beinvestorsaskthemselvesafewquestionssuchas:
AmItechnicallyproficientenoughtohandledigitalcurrenciesonmy
own?
DoIalwaysfollowbestpracticesforcomputersecurity?
ShouldIrelyonareputableconsultant,broker,orhedgefundtomanage
myinvestment?
AmIwellversedinthenatureofonlinescams,walletsecurityissues,
andlegalissuesbeforebuying?
ShouldIuseXRPasahedgeagainstmyotherinvestments?
Youranswerstothesebasicquestionsshouldhelppointyouinthe
directionthatsrightforyou.Itdoesnthelptobelessthanentirelyhonest
withyourself,sobecandidandassessyourstrengthsandweaknesses
beforemakinganyinvestment.
Investorsmustbeawarethatthereareinherentrisksassociatedwith
digitalassets.Theftsandscamsareanunfortunatebutinevitableaspect
ofonlineofferingsandtheinvestormustalwaysperformduediligence
beforetrustingotherswiththeirmoney.Evenifaninvestmentisnot
fraudulent,thereisnoguaranteethatthevalueoftheinvestmentwillyield
Copyright2014AndrewWhite
profits.Youarecompletelyonyourownonthisone.RippleLabscannot
andwillnotcommentontheinvestmentfitnessofRipple,XRP,orthe
valueandsafetyofclaimsmadebynonRippleLabsstaff.Duediligence
istheprocessofinvestigatingaproposedinvestment,andthe
responsibilityforduediligenceisentirelyuptoyou.Beappropriately
skepticalandcautiousinallyourdealings.
Atfirsttheywereworthnothingatmarketrates,butXRPhassteadily
increasedinvaluethroughasteadilyincreasingnumberofservicesbuilt
forit.AlthoughthepriceofXRPhasbeenrelativelystable,itisnot
immunefromdrasticpriceswingssimilartoapennystock.Although
currentlyvaluedforlessthanapenny,Ripplesarereallyonlyusefulfor
makingtransactionsontheripplenetworkbutspeculatorsontheRipple
networkliketotradeitagainstotherassets.Becautioushoweverason
rareoccasionsthevaluehaschangedhundredsorthousandsofpercent
aday.
Gateways
GatewaysareserviceprovidersthatletRippleusersdeposit,transfer,and
withdrawmoneybymeansoftheirgatewayaccounts,includingtransfers
betweenaconsumerswalletandtheconsumersgatewayaccount.To
attractandretainusersoftheirservice,gatewayswillinnovateandoffer
beneficialservicestotheircustomers.
Copyright2014AndrewWhite
Asgatewayscompeteformarketshare,Ifullyexpectthatmoregateways
willbelaunchedthattheywillincreasinglyofferinnovativerewards
programslikeairlinemiles,coupons,andpremiumservicediscounts.
Thereareanumberofservicesavailabletopeoplewhowanttocreate
andoperateagateway.Iftheyhaveastrongtechnicalbackground,they
canusuallysetoneupthemselves.Iftheydonthavethetechnicalskills,
theycanuseahostedwallet(moreonthatinamoment)oruse
consultants.Iftheyareseriousaboutgettingintothegatewaybusiness.In
thefuture,cloudbasedoptionswillbeavailablesuchasOMGsOne
MillionGatewayshostedservice.
BecauseofRipplesdesign,anyonewithaRipplewalletcantechnically
becomeagateway.
However,thatisneitherlikelyornecessaryinalmostallconsumeror
investorcases.Whenpeopletalkaboutgatewaystheyareusually
referringtoabusinesssetuptooperateassuch.ARippleWalletcan
becomeagatewaywhenpeopleaddtrusttoawalletyoucontrol.Trust
inthecontextofRipplemeanshowmuchofmymoneydoItrustthis
gatewaytohold?Gatewayswithanestablishedhistorywithagood
reputationforcustomerservicetendtobemoretrustedbyusersthannew
gatewaysthatarelessknownandhavealimitedhistoryofoperation.
Copyright2014AndrewWhite
ThisisanexampleofagatewayloginpagefromSnapSwapInc.
Thisexampleiswhatabasicgatewayexperiencelookslike.
Gatewaysasabusinesshaveafewdifferentbusinessmodelsavailable
toguidethem.Oneexampleisagatewayprimarilyusedformoney
transmission,anotherexampleisremittance.Asagatewayoperator,you
mightbeinterestedinenablingpeopletosendpaymentstoanother
country.Aconsumeropensanaccountonyourgatewayandsendsyou
moneytogointhataccount.ThegatewayoperatorissuesIOUs(more
aboutthoseinthenextsection)totheaccountholderandthoseIOUs
Copyright2014AndrewWhite
appearintheholdersRipplewallet.Theaccountholdercanthantrade
theseIOUsforanothercurrency.Intheothercountry,apersoncan
withdrawtheseIOUsfromthegatewayandreceivetherealcurrency.The
gatewaymakesmoneybychargingatransactionfee.Iftheoriginal
gatewayswebsiteorservicebecomesunavailable,theIOUsdonot
disappearfromRipplewallets.Intheeventofbankruptcyorotherserious
disruption,theIOUsmaylosesomeoftheirmarketvaluefortheIOUsof
currencytheyrepresent,buttheycouldberedeemedwhenthegateway
businessreturns.Theuniquecircumstancesofthegatewaysissuewill
decidewhatrecourseisavailabletotheIOUholders.
Thechartson
RippleCharts.com
containthemajorcurrencymarketson
Ripple.ThesearetypicallywrittenintheformofBitstampUSD/XRPto
indicatethattheseIOUsareissuedbytheBitstampgatewayintheUSD
currencyandistradingagainstXRP.AnotherexampleistheChinese
gatewayRippleCN.TheirIOUsfortheChineseYuanlooklikethis:
RippleCNCNY/XRP.BackoveratBitstamp,youwillseethatBitstamp
USDisalsoabletobetradedforBitstampBTC.Gatewayscansetrules
onthefeesoftradesorpoliciesastowhatisallowedtobetradedbutin
generalalltheIOUswillbetradableforalltheequivalentIOUsona
givengateway.
Aquickwordaboutaddingtrusttoagateway.Sinceanyonecancreatea
gatewayitiscriticalthatyouonlytrustaproperlyestablishedgateway.
Thismeansitisattheveryleastincorporatedandisrunbypublicly
knowncorporateofficers.
Ifthegatewayisoperatedinananonymous
manner,thatmeansthereisnoaccountabilityiftheservice
disappears.
Thisisimportant:inyourRippleWallet,youshouldonlygive
trusttogatewaycompaniesthatyoutrusttobereliableandresponsible
withyourtokensofvalue,e.g.money.Sinceagatewayisnotusuallya
bank(atleastatthetimeofthiswriting),notethatthereisnoFDICstyle
insurancefordepositsmadetoagatewaybusiness.Agatewaythat
makesanefforttobelegitimatehaspubliclyknownstaff,abusiness
Copyright2014AndrewWhite
address,customersupportdetails,and/oraphonenumberwithpeople
whoanswerthephoneduringestablishedhoursofbusinessoperation.If
aRipplegatewaywebsitedisappears,yourIOUsdonotdisappearfrom
yourRippleWallet.TheproblemisthatredeemingthoseIOUsfortheir
cashvalueisimpossibleunlessathirdpartygatewayacceptsthemfor
theircashequivalents.Icansumthisupsimply.Whenitcomesto
anonymousgateways:
donttrustthem
.Youwillknowtheyare
anonymousbecausetheoperatorsdonotmakeitobviouswhothe
ownersare,wheretheyareincorporated,whattheirantimoney
launderingpoliciesare,etc.
Tohelpmaketrustworthystandardsforgatewaysastandardsgrouphas
beenformedcalledtheInternationalRippleBusinessAssociation(IRBA),
whichoperatesindependentlyofRippleLabs.IwilldiscusstheIRBA
morebelowbutfornowyoushouldknowtheIRBAhasasetof
requirementstomakesurethatthegatewayslistedonIRBAswebsiteat
http://xrpga.org
arelegitimateorganizations,operateusingbestpractices
forbusinesses,etc.Thereareroughly170membersoftheIRBAatthe
presenttime,includingpeoplewhohaveexpressedtheirinterestin
formingagatewayforcertainmarketsorareasintheworld.Theauthor
hasbeenelectedtoserveasSecretarytothisorganizationtohelpensure
itmeetstheseexactingrequirements.
Consensus
TheprocessofhavingdistributedpartiesreachingConsensusofwho
haswhatandwhenistheheartofhowRippleworks.Itisareally
interestingconceptandyoucanlearnmoreabout
atthislink
and
thislink
.
Copyright2014AndrewWhite
IfyouarefamiliarwithBitcoinlikecurrenciesyoumayhaveheardthat
Bitcoinworksthroughaschemecalledproofofwork.Proofofworkisa
processinwhichcomputerscooperateonsolvingahardmathproblem
thatinitiallynoneofthemknowtheanswerto.Whentheanswerisfound,
thecomputerthatsolvestheproblemisawardedablock,anawardof
Bitcoin(25atthetimeofthiswriting)andtheblockisdistributedalongto
alltheothercomputerswithacopyofallthetransactionsthattookplace
inthepriorblock.Thisiswhatallowstransactionstotakeplace.In
technicalterms,thissolvesanimportantproblemofhowtosolvethe
doublespendingproblem.Adoublespendissomeonespendingthe
sameunitsofcurrencytwice.Ifeveryonethoughttheycouldjustuse
spreadsheetstocreateacryptocurrency,theywouldsoonfindthat
someonewouldcheatbymanuallychanginghowmanypaymentswere
sent.Anotherproblemthissolvesisreferredtoinacademiccirclesasthe
ByzantineGeneralsproblemwhichishowtocommunicatealong
untrustworthypaths.Thisproblemhasexistedforalongtimeandone
wayofsolvingitwasreleasedtothepublicin2008bySatoshiNakomoto,
theanonymouscreatorofBitcoin.In2011JedMcCalebwasthinkingof
waystosolvesomeoftheproblemswiththeproofofworksystem.In
particular,JedwantedtosolvetheslowtransactiontimeofBitcoin.
WaitingforcomputerstosolvetheproofofworkproblemonBitcoincan
taketenminutesorhoursintimeandthatwaittimeisnotgoodfor
merchantsorconsumersusingthesystem.Whathecameupwasanew
approachcalledConsensus.Ifthemajorityofcomputersonadigital
currencynetworkcouldagreethatatransactionhappenedtherewouldbe
noreasontodoubtthatatransactiontranspired.Theproofofworksystem
reliesonseveralcomputersagreeingthatatransactionoccurred,whichis
calledconfirmations.Afterenoughconfirmationsoccuritcanbe
reasonablybeassumedthatatransactiondidinfacttakeplace.Witha
consensusbasedapproach,transactionscouldtakeplaceinseconds
ratherthanminutes.Therecanalsobealotmoretransactionssincethe
computationalcostofthissystemislow.Thisbringsustoanother
problemthathaslongbeenanacademicpuzzle,theByzantineGenerals'
Copyright2014AndrewWhite
Problem.Thisproblemasks,howdotwogeneralscometoan
unanimousagreementwhentheyareseparatedbydistancesthatcreate
obstaclestocommunication?
OneanswertothisproblemisdonewiththeRipplesoftware,thenetwork
issetuptovalidateatransactionif80%ofvalidatornodesagreea
transactiontookplace.Ledgersthemselvesaredeterminedtobevalidby
deterministicrules,i.e.,theycannotcreatefundsoutofnowhere,make
fundsdisappear,andalltransactionsmustbeproperlysigned.
NextImgoingtoextensivelyquoteRippleLabsChiefCryptographer
DavidSchwartzwhohasalottosayonthisimportanttopic:Thenumber
wasdeterminedbysimulation.Ifyousetthethresholdtoolow,the
consensusprocesscompletesveryquicklybutmorefrequentlydoesn't
actuallyreachconsensus.Ifyousetthethresholdtoohigh,theconsensus
processtakesmuchlonger,butonlyveryrarelyfailstoactuallyreach
consensus.(Whenyousay,"Ibelievethere'saconsensus",youcan't
actuallybe100%surethereisinfactaconsensusornobodycandeclare
aconsensusfirst.)
Theconclusionthatnoconsensushasbeenreachedis
avalidconclusionandcanresultduetopoortopologyorByzantine
failure.Certaintyisalwayswithrespecttosomethingthathasoccurredin
thepast.Itisnotpossibletoknowwithcertaintythepresentstatewithout
observingatmorepointsthanwillnormallybepossible.
Soeachserverrunsoutaheadofwhatitknowsforcertain,applying
transactionsandattemptingtoreachconsensusonthem.Whenandifa
consensusisinfactproduced,theserverlaterdeterminesthiswith
certainty,andthuscanadvancewhatitknowsforcertain.
Copyright2014AndrewWhite
Essentially,theconsensusprocessproducesastreamofsigned
messagescalled"validations"fromwhichit'spossibletodeterminewith
certaintywhetheraconsensushadactuallybeenreachedatsomepoint
inthepast.
ItispossibletocreateUNLtopologiesthatfrequentlyfailtoreach
consensus.TheplanistohaveRippleserversbuildtheirUNLsusingan
algorithmthatmakessuchtopologiesexceedinglyunlikely.
Evenwithaperfecttopology,twotypesofByzantinefailuresarepossible.
One,whichisnotthatuncommon(oneoutofevery200roundsorso),is
alocalfailure.Inorderforaconsensustoeverarise,someonehasto
declareaconsensus.Andforthattohappen,someonemustdeclarea
consensusfirst.Whenthathappens,whoevermakesthatdeclaration
can'tknowforcertainthatotherswilldeclarethatsameconsensus(or
theywouldhavealreadydoneso,andsohewouldn'tbefirst).Soit's
alwayspossiblethathedeclaresthewrongconsensus.
Inthiscase,theserverthatsufferedtheByzantinefailurequickly
discoversthattheothervalidatorshavebuiltadifferentledgerthanitdid
anditbeginsitsresynchronizationprocess.Otherserverswillstill,from
thevalidations,whichledgerwasthemajorityledger.
AmuchlesscommontypeoffailureiscompleteByzantinefailure.Inthis
case,severalserversdeclaredifferentconsensusesandthereisnoclear
majorityledger.Inthisrarecase,thenetworkasawholemustreconverge
beforeatrueconsensuswillemerge.Ripplehasanalgorithmtodo
exactlythis.Serverswillseetheconflictingvalidationsandknowwith
certaintythattherewasnoactualconsensus.Andthattheymustadhere
tothefollowingpriorities:1)Validity.(Transactionsproperlysigned,rules
Copyright2014AndrewWhite
followed)2)Agreement.(Ledgersgetsupermajorities)3)Utility.(Asmany
transactionsincludedaspossible)2isuselesswithout1.3isuseless
without2.
OntheRippleforumrecently,amathematicallymindedmemberasked
DavidthefollowingquestionHowdoesRipplesolveByzantineGenerals'
Problemsuchasnosolutionunlessn3t+1,n=numberofprocesses
inthesystemandt=numberoftraitors?
SohowRipplesolvestheByzantineGeneralsproblemissimple.The
consensusprocessispermittedtofailbecauseitdoessoharmlessly.If
theconsensusprocessformsaledgeronwhichthereactuallyisno
consensus,thentherewillbeinsufficientvalidationsandtheconsensus
processwillrepeat.ToputitinByzantineGeneralstermsifyougettothe
battleandtheotherarmiesaren'tthere,youjuststartover,nothing
catastrophichappens.Inotherwords,keeptryinguntilthevastmajority
ofmessagesagreeatransactionisaccurate.Perhapsnotsurprisinglythis
simplebutelegantsolutionhaswiderangingramifications.
AndwiththatwecanwrapourreviewofhowConsensusworks.Formore
informationpleasecheckouttheRipplewikipagesat
https://ripple.com/wiki
or
https://ripple.com/wiki/How_it_works
Validators
SincewearediscussingthetechnicaldetailsofhowRippleworks,for
completenessIjusttomentionValidatornodesandwhattheydo.
Copyright2014AndrewWhite
TheRipplewikihasthistosayaboutvalidatorsTheRippleprotocol
dependsonacollectionof
validators
whoparticipateinthe
consensus
processandproduce
signedledgers
whichgetbroadcastintothepeerto
peernetwork.Clientsandpeerscollectanddependonthesesigned
ledgerstodeterminewhatisthe
consensusledger
,orthe"true"stateof
theledger.CrucialtothesecurityofthenetworkisthateachRippleserver
choosetopayattentiontoasufficientlylargediversesetofvalidatorswho
arenot
colluding
todefraud.When80%ofvalidatornodesagreethata
edgerisvaliditgetssignedandconfirmedacrosstheentireRipple
network.ThisisanalternativesolutiontotheByzantineGenerals
problemfirstsolvedbyBitcoinwithmining.Basicallywhenyouuse
Ripplethiscomesdowntotrustingthatthevalidatornodesyouareusing
aretrustworthyenoughtobesecure.EvenpeoplesuchasBillGates
havesaidisasuitablesystemforhandlingtransactionssuchthat,
TheresalotthatBitcoinorRippleandvariantscandotomakemoving
moneybetweencountrieseasierandgettingfeesdownpretty
dramatically.
CreditsandCurrencyIOUs
IOUs(Ioweyouspronouncedhowitisspelled,eyeohu)arecredits
andarewhatmostpeoplewilluseonRipple.IOUsstandforIoweyou
(something).Thetermcreditiswhatmostpeopleusuallyuseforthiskind
oftoken.WearemostfamiliarwithIOUsfromourbankingorinvestor
statementthatismailedmonthlybyfinancialserviceproviders.AnIOUis
apromisethatacertainamountoffundsthattheIOUissuercontrolsare
fundsinyouraccount.TherealityisthattheIOUholderhasatotal
amountoffundsthatitcontrolsand,fromthistotal,theyuseadatabase
toorganizewhattheyowetheircustomersandthenumberdisplayedto
Copyright2014AndrewWhite
youistheIOU.IOUsonRipplenetworkoperateonthesameprinciple,
butinsteadofabankingorinvestmententitycreatinganddisplayingthe
IOUtoyou,anIOUontheRipplenetworkisanassetcreatedbyaRipple
gatewayindicatingIpromisetoredeemyouaspecificamountofthis
currencyasset.IfyoureceivedapaymentforUSdollars,youwouldsee
thedepositoftheUSDIOUsinyourRippleWallet.
IOUsarewhatmakeRippletheemailofcurrencies.Theemailprotocol
doesnotcarewhoyouaresendingamessageto,orthecontentofyour
emailandRippleworksthesameway.Thesenderandrecipientofan
emailislikethesenderandreceiverofRipplewallets,themessageinan
emailissimilartowhatcurrencyandhowmuchissentinthe
transaction(themessage,inouremailanalogy).Thefinallessonyou
shouldtakeawayfromthisisthatanIOUhasnovaluewhenitisnot
backedbyanassetthatcanberedeemed.
Pathfinding
PathfindingisoneofthetechnicaldetailsthatIincludeforcompleteness
andisfairlyselfexplanatory.PathfindingishowRipplefindswaysto
makethebestavailablepayment.Thepriceonatransactionfeecanvary
inRipplebasedonthebestpossibleexchangerateontheorderbooksof
Ripplecurrencies.AsthisdiagramfromRippleLabsillustrates:
Copyright2014AndrewWhite
Pathfindingisofmostinteresttomarketmakersandtechnicaltypestobe
abletoservemarketactivity.ItisimportanttonotethatalthoughRippleis
fastitisslowenoughastomakehighfrequencytradingimpossibleanda
partofthereasonwhythatisisbecauseofthetimeittakesPathfindingto
work,afewsecondsistooslowforHFTtobeeffective.
Traders
AnyonewithaRipplewalletcantradethedigitalcurrencyassetson
Ripple.SendingapaymentofanysortusingtheRipplenetworkis
Copyright2014AndrewWhite
equivalenttomakingatradeontheforeignexchange(alsoknownas
forexandFX)currencymarkets.
Eachcurrencyhasathreeletterabbreviation,andeachcurrencytradeis
expressedasapairthatincludesthebasecurrencyandacounter
currency.Eachcurrencypair(USD/XRPorEUR/JPYorCNY/BTC,etc.)is
supportedbyagatewaythathasanorderbookofbuyersandsellersofa
particularcurrencypair.ThedailytradingvolumeontheRipplemarketis
growingrapidly.Atthetimeofthiswriting(March2014),themostpopular
currenciestradedareChineseYuan(CNY),USD,andBTC.
Automatedtradingisapopularchoiceforinvestorswiththetechnical
knowhowtoworkwithprogrammingscriptstomakeatradingbot.
ThesebotsconnecttotheRipplenetworkandlookatthebidsandasksin
certaincurrenciesandtradeaccordingtouserdefinedparameters.Most
ofthesebotsrequireafairamountoftechnicalknowledgeandskillto
setupanduse.Althoughtherearenoalgorithmictradingservices
availabletoinvestorsatthemoment,theseareknowntobein
Copyright2014AndrewWhite
development.Tradeandforgetbotscanbeextremelyvaluableasthey
workforyouaroundtheclockwithouttiringormiscalculating.
Offmarkettradingcanalsobeverylucrative.Findingamarketthatwants
XRPbutdoesnothavetheknowhowhowtogetitisanexcellentwayto
buildabusinessandincreaseRippleadoption.Ifyouwanttoengagein
offmarkettrading,pleasegetinformedoflocallawsbeforebeginning.In
theUnitedStates,tociteoneexample,transactionsgreaterthan$10,000
needtobereportedtotheFederalFinancialCrimesNetwork(FinCen).
MarketMakers
Marketmakersarepeoplewhoprovideliquidity(i.e.,money)between
gatewaystoallowpaymentsthroughapathwayofcurrenciestobe
made.Muchlikehowaroadprovidesapathforacartoreachits
destination,apathwayistherouteatransactiontakestocompletea
payment.Althoughthereareafewwaystobecomeamarketmaker,the
easiestiswithasimpleorderintheRipplewalletforthesamecurrency
betweenthetwoormoregatewaysyouwanttomarketmakefor.Itshould
benotedthatanyonecanbeamarketmakerbutithelpstohavealotof
capitaltomakeitmoreworthwhileforthemarketsyouaretryingto
support.
Enterprises
TheRippleecosystemislikelytoseepowerfulwaves(ha!)ofnew
servicesdevelopedtotakeadvantageofthenewfoundpossibilitiesthat
Rippleprovides.Themostobviousareaatthetimeofwritingisgateway
Copyright2014AndrewWhite
services.Merchantservices,remittanceoptions,charities,experimental
hobbies,andcommoditiesalsoareallpromisingareasforinnovatorsto
placetheirstake.
Anumberofinterestingcompanieshaveformedbasedentirelyonthe
Rippleprotocol.CompaniessuchasFortuneHarbor,Coinst,RippleWise,
SnapSwap,andothersareleadingthewayintermsofinnovationand
provingthattheRipplesystemisaviablebusinessmodel.Companies
olderthanRipplehavealsosignedontousetheservice,mostnotableto
dateisBitcoinexchangeBitstamp.
CreatingorinvestinginanewcompanyintheRippleecosystemisan
attractiveoptiontotheinvestorfamiliarwithmanagingequityassets.
Rippleissonewandtheopportunitiesitofferssolargelyuntapped,that
thedooriswideopenforenterprisingindividualsandstartupstomakea
substantialimpactwithlittlestartupcosts.Ifthisissomethingthat
interestsyouinpursuingabusinessIstronglyencourageyoutodoso.
ComplementaryservicesthataddvaluetotheRipplenetworkis
somethingRippleLabsisveryinterestedinsupportingandyoushouldlet
themknowaboutitonceyouarereadytolaunch.
DueDiligenceQuestions
IfyouplanoninvestingintheRippleecosystemyoushouldbeasking
somehardquestionsandhavehonestanswersbeforethrowingmoney
around.Herearesomebasicsforyoutoconsider:
HowwelldoIunderstandRipple?
WhatdoInotunderstandaboutRipple?
Copyright2014AndrewWhite
Whataretherisksinvolved?
WhatarethelegalandregulatoryissuesimpactingRippleinmycountry
ofresidence?
WhatdoIknowabouttheprincipalsintheenterpriseinwhichImight
invest?
DoIunderstandallthecounterpartyrisks?
WhathappensiftheRipplesoftwarebecomesfundamentallybroken
andcantbefixed?
Whoarethemajorcustomersandtheapplicationsrelatedtoinvestment
opportunities?
Whatarehistoricalandprojectedgrowthrates?
Whatistheexpectedmarkettimingofnewproducts,services,or
enhancements?
Alongwiththesespecificinvestorquestions,Iwantedtosharethislistof
bestpracticesfromtheRipplewiki:
Youmustprotectyourself:
RippleLabsInc.doesnotendorse,qualify,orguaranteethe
performanceofanymerchantorgateway.
Donottrustservicesoperatedanonymously,youhavenorecourseif
theyfailtodeliverontheirpromises.
DonotenteryourRippleusernameandpasswordonanysiteyoudo
nottrustwithyourfunds.
DonotenteryourRippleusernameandpasswordonanysitethatdoes
notusehttps.Youcanusuallytellwhenasiteuseshttpswhenyourweb
browserhasagreenlocknexttothewebsiteaddressintheaddressbar.
Copyright2014AndrewWhite
Donotuseaclientprovidedbyanentityyoudonotfullytrust.Youmust
trustyourclientprovidertobehonest,secure,competent,uptodate,and
perhapsmore.
ForlongtermstorageofXRPorIOUsinacoldwalletconsiderusing
theDesktopClient.
Youshoulduseapasswordsolongandrandomyoucannotremember
it(onlystoreandcopyitsecurely).
Ialsotellmyclients:Idonotwanttoknowyourpasswordoryoursecret
key,youshouldnothavetotrustmetothatlevel.Beingacustodianof
fundscarriescertainlegal,financial,andethicalrisksyoushouldthink
aboutverycarefully.
Usingdigitalwalletsnotcontrolledbyathirdpartysuchasabankor
PayPalisaverynewphenomenaanditisfairtosaythatthestateof
computersecurityandconsumereducationhavealongwaytogobefore
theyarefullyreadyfortheresponsibility.
IntheFuture
Thefuturewillcertainlybringmanyexcitingandinterestingareasfor
Rippleinvestorstoconsider.Inparticular,Imexcitedforthetimewhen
optionstradingbecomesmorewidelyavailable(whichwilllikelybeeasier
withtheadventofsmartcontractslaterin2015).Inmyopinion,smart
contractswillbethekillerappformathbasedcurrencies.Forexample,
byusingsomeparticularmathfunctionsitispossibletoissuesharesfora
companyorraisefunds.
InJuly2014RippleLabsannouncedCodius,anewprojecttoenable
smartcontracts.Codiuswillallowpeopletocreateoffersorcontracts
acrossforanydigitalledgersystemsothattheycanallbenefit.Theydo
Copyright2014AndrewWhite
thisthroughsomeinnovativedesignchoicesthatallowpeopletomake
usefulapplicationswithanypreexistingprogramminglanguage.Ispoke
withStefanThomastheCTOofRippleLabswhoexplainedtomethatthe
designwasinformedfromtheexamplethatbusinesslogicanddata
storage(databasesordecentralizedledgerslikeBitcoin)aretwo
separatetopics.Everywebserviceinexistenceusesadatabasetostore
informationandbusinesslogicontopofthedatabasetodecidewhat
goesintoit.Ishouldprobablymentionacomputersciencetermthatwill
behelpfultounderstandwhythisdesigndecisionwastaken.Computers
runsoftwareinoneoftwoways.Oneisdeterministic,codeexecutesin
thesamewayeverytime.Theotherisnondeterministicwhichmeansit
canexecutedifferentlyeverytime.Whatisgoodaboutthisapproachis
thatitmakesCodiuscompletelyplatformneutral.Anyprogramming
languagecanuseitandanydigitalassetsystemcanuseitsapproach.
CodiususesanotherconceptcalledSmartOracles.Asmartoracleis
anythingthatcanbeaskedaquestionandanonbiasedansweris
returning.Oneexamplecouldbeaskingthestockmarketwhattheprice
ofagivenstockis.AnotherexampleisaskingtheBitcoinnetworkifa
certaintransactionhappened.Theimportantthingtounderstandisthat
Codiusisneutralastowhomyouaskyourverifiedquestionsandhowyou
doit.Youmightwanttomakeacontractonstockfuturesandhedgeon
thepriceofBitcoinandorthetemperatureofDalyCity,ifalltheanswers
adduptothethresholdoftruthaswritteninyourcontractthetermswill
bemetandthecodeexecutes.Thisisverydifferentfromeveryother
systemoutthereandsomethingthatcreativepeoplewillmakeamazing
applicationswith.
TheCodiusapproachtosmartcontractsfreesdevelopersfrombeing
lockedintoanyonesystemwhichistheHolyGrailfornextgeneration
financialandbusinessapplications.Tolearnmoreonthesubjectofsmart
contracts,IhighlysuggestathoroughreadingofGreatChainsof
NumbersbyTimSwanson.
Copyright2014AndrewWhite
NewservicesforRipplewalletsarecomingoutallthetimeincluding
Shift
Payments
whoarereleasingacreditcardthattiesintoaRipplewalletin
late2014.SnapSwapandothersarealsoreleasingRipplebackedVisa
cardsthatisveryexciting.Irecentlyhadausecaseforthis.Mywifewas
shoppingforsomethingandcalledmeupthathercardwasdeclinedat
thegrocerystore.Thiswouldnormallybeaverydisruptiveexperiencebut
IwasabletosendUSDtoherRipplewalletandtheshewasabletomake
thepaymentwithoutincident.Trydoingthatwithatraditionalcreditcard!
OthercoolthingsthatarehappeningiswithATMs.Insteadofbeingthe
dumbandpriceycashwithdrawmachinesweareusedto,Ripplebased
ATMsarecomingthatwillallowconsumerstheabilitytowithdrawand
sendmoneyinanycurrencytoanypersonontheplanet.Thisis
awesomenotjustformovingmoneybutpayingbills,buyingservices,and
andsomuchmorethatinthefutureIthinkthesemachineswillbethought
ofassmartcontractmachines.
Likeanyactiveprotocol,Rippleisconstantlyevolving.Ripple(and
Codius)issuchadisruptivenewtechnologythatitsfullimpacton
businessandsocietywillnotbeknownformanyyears.Thedaywillcome
whenpeoplewillbesoaccustomedtoamulticurrencywalletthatthey
willaskwhydidntIthinkofthat?Inmyopinionwearewitnessingthe
dawnofadisruptivetechnologyasbigasanadvancementasdigitalstock
marketsorpapercurrencies(eachyeartheFederalReserveshreds
7
tons
ofdamagedpaperbills!).
ImportantRippleInfrastructure
Copyright2014AndrewWhite
BeyondRippleLabsthereareanumberofimportantresourcesand
servicesthatisavailabletotheRipplecommunity.Foremostaboutthose
arecommunityforumswhereissuesrelatedtoRipplearediscussed.The
mostactiveoftheseare
XRPTalk
ranbyacommunitymemberinFrance
andthe
RippleLabsForum
.Acoupleofnewserviceshavecomeinto
beingrecentlythatareusefulaswell,LibreTaxfortaxesintheU.S.and
Coinist
forpublicreviewsofgatewayservices.
ThemostwellknownRipplegatewayrightnowis
Bitstamp
,theworlds
largestBitcoinexchange.Thereareavarietyofotherprojectsunder
developmentrightnow.Thereareatleastfourventurecapitalbacked
companiescreatedspecificallyfortheRippleecosystemthatIknowof.
ThereisalsoalotofdiscussionaboutwaystoimprovetheRippleworld
withnewfeaturesandmoreservices.Itisgoingtobeanexcitingfew
yearsforimportantinnovationstobebroughttomarket.
Fortechnicalinfrastructure,Iexpecttoseemoreservicestoenterthe
markettoserveasenginestodrivethegrowthofdigitalassetsanduseful
thingsthatcanbedonewiththem.Myowncompany
OneMillion
GatewaysInc.
wasfoundedin2014tohelpRippleservicesreachtheirfull
potential.
FAQs
HowisRippledifferentfromBitcoin?
Thetwoarecompletelydifferent.ThemostbasicansweristhatRippleis
notdesignedtobeusedasjustacurrency.Insteaditisapayments
protocol.ThedifferenceisbetweenBitcoinbeingap2pvirtualcurrency
andRippleasap2pexchange.Bitcoinusestheproofofwork
mechanismcommonlyknownasminingtogenerateBitcoinandorverify
thevalidityoftransactions.Instead,Rippleusesasystemcalled
Copyright2014AndrewWhite
consensus.ThisfundamentaldifferencewithBitcoinmeansthatthey
workdifferentlyandthattheyaredesignedfordifferentpurposes.Bitcoin
orothercurrenciesarenotcompetitionforRipple.Myunderstandingis
thatRippleLabswantstoseeotherpaymentsystemssettledortradedon
Rippleandnotcompetewiththem.
Iheardthatminingdigitalcurrenciesrequiresanincredibleamountof
electricity,isRipplesimilar?
Thankfullyno.Ripplerequiresnomoreelectricitytorunsecurelythana
normalhighendcomputerserver.ThemegatonsofCO2andmegawatts
ofelectricityandpowerbillsusedbyotheralternativesisnotanissuewith
Ripple.
IheardthatRippleisapreminedcurrency,isthattrue?
Theanswerisbothyesandno.Ripplewasnotcreatedorreleasedas
acurrencyplatformthatusedminingtogeneratethecurrencyandverify
transactions.Peoplethatmineorbelieveintheideathatminingisfairdue
totheequalprobabilityofbeingrewardedfordoingtheproofofwork.
Thereisnothingwrongwiththatopinion.HoweverRipplesuccessfully
solvedsomeoftheinherentandfundamentalproblemsthatminingbrings
toadigitalcurrency:theslownessoftransactions,the51%attack
problem,blockchainsplits,etc.Indefiningtheutilityofcrosscurrency
payments,afundamentaldesignprincipleisthatlongdelaysforpayments
isnotacceptable.Letsfaceit,nobodywantstheuncertaintyofwaitingfor
apaymenttoconfirmandRipplecanmaketradingthosekindsofassets
fasterandmoresecure.
DoanybanksuseRipple?
Copyright2014AndrewWhite
Atthetimeofthiswritingthereareafewbankswhohaveclaimedthey
willbeusingtheRippleprotocol.
Whatarevalidators?TheRipplenetworkreliesondedicatedcomputers
calledvalidatorstoconfirmthattransactionsarevalid,whyisthis?
Validatorsarethelightweightwaytoverifythattransactionsarevalid
comparedtotheheavyweightneedforcomputingpowerin
cryptocurrencyminingalgorithms.Theyarelightweightbecauseyouonly
needafewcomputersdoingthis(insteadofthousandsintraditionaldigital
currencies).Bydesign,RippleLabscreatedtheRipplenetworktorelyon
validatorsthattheyrunandtheyknowcanbetrustedtomakesurethat
transactionsarevalid.Themajorityofthevalidatorsthatagatewaytrusts
mustbetrustworthy.Ifthemajorityofthembecomemaliciousorconspire
againstthegateway,theycanmakefraudulentpaymentsagainstthe
gateway.Thewaytomitigatethisthreatisbyusingcommunityaccepted
trustednodessuchasthoserunbyRippleLabs.
HowmanypeopleuseRipple?
Thereare120,000walletsasofNovember2014.Thelargestgateways
havebetween15,000to10,000walletsthattrustthem.
IheardsomeoneforgottheirpasswordorhadtheirRipplecoinsstolen,
arethosecoinsorwalletsinaccessibleforever?
Yes,unfortunatelytheyareinaccessibleforever.NeitherRippleLabsnor
anyoneelsecanrestoreyourpasswordorrecoverstolencoins.Payments
inRippleareirreversibleduetohowsomeofthelowlevelmathfunctions
Copyright2014AndrewWhite
work(formoreinformationontheunderlyingtechnologies,youcan
researchpublickeycryptographyandmessagesigning).
Iwanttoknowmoreabouthowtosetupagateway,wheredoIstart?
https://ripple.com/wiki/index.php?title=Ripple+for+Gateways
isagood
resource.Iwouldalsolovetotalktoyouaboutyourideaandhelpyou
becomesuccessful.
WhatisaSecretKey?
YourwalletsSecretKeyisyourprivateentranceintoyourwalletifyou
everforgetyourpassword.YourSecretKeycanalsobeusedaspartofa
programtodothingsforyousuchasrunningatradingbot.SecretKeys
arenamedsecretbecausetheymustbeabsolutelyunavailableto
anyonebutthosetrustedtoaccesstheaccount.Ifsomeonegetsyour
SecretKey,theycandowhatevertheywantwithyourassets.Ifyouare
havereasontobelievesomeonehasgainedunauthorizedknowledgeof
yourSecretKey,youshouldcreateanewwalletandsendyourassets
overtothenewwalletassoonaspossible.Youshouldnevershareyour
secretkeywithanyone(exceptperhapsyourattorney).
WhatkindofventurecapitalorincubatorsareavailabletoRipple
developers?
TherecentlylaunchedCrosscoinVenturesisagoodstartingpointfor
Rippledevelopersseekingfunding.Headedbyentrepreneurialstartup
andVCveterans,Crosscoinhastheenviablepositionofbeinglocatedin
thesameofficebuildinginSanFranciscoasRippleLabs.Lookfora
Copyright2014AndrewWhite
numberofhighqualityandinnovativeservicestoemergefromthe
Crosscoinaccelerator.
WhatisthebesttechnicalresourceforRipple?
ThebestRippledocumentationresourceislocatedat
https://ripple.com/wiki/
Developerscanalsocheckout
http://dev.ripple.com/
Forfurtherinformation,Isuggestconnectingwith
thedevelopersontheIRCchannelontheFreenodenetwork#ripple.
IwanttolearnmoreaboutConsensus,wheredoIfindmoreinfo?
TheConsensusWhitepaperreleasedinAugust2014:
http://dev.ripple.com/consensuswhitepaper.html
IdontlikehowRippleLabsdoesXYorZ,whatdoyouhavetosayabout
that?
RippleLabsisaveryyoungstartup.Expectationsforthisserviceare
high,perhapstoohigh.Ittakestimetobuildworldclassteams,and
staffingresourcesarealwayslimited.GiveyourissuesometimeandIam
certainthatyouwilleventuallyseeimprovementstotheissueyouare
concernedwith.
Whataresoftwareforks?
Softwareforkshappenwhenonegroupofsoftwaredevelopersdecidesto
takethesourcecodefromaprojectandmaketheirownpossibly
incompatiblechangesfromthepriorversionofthesoftware.Thiscan
happenforvariousreasonsbutthemostlikelyreasonisthatonegroupof
Copyright2014AndrewWhite
developersdisagreedwiththedirectionaprojectwasgoing.Thiscanbe
eitheragoodorabadthing.Itisbadwhenitdividesthenumberof
peopleworkingonaproject.Itcanbegoodwhentheforkedsoftware
makesimprovementstheotherdeveloperswerenotwillingtomake.
AlternativeversionsofRippleareexpectedtobereleasedinthefuture
andthisisgoodfortheRippleprotocolsincenewideascanbetestedin
differentnetworks.
Whataregoodcommunityresourcesforgettinganswerstomyadditional
questions?
Myfavoriteresourceistheforumat
https://ripple.com/forum/
butthemost
popularcommunityforumis
https://xrptalk.org/
HowdoesRippleLabssellRipples?Dotheysellontheopenmarket?
AccordingtoDirectorofCommunicationsMonicaLong
theydonot
:
RippleLabsisn'tandhasneversoldXRPintheopenmarket.Wesellthe
portionofXRPreservedforbusinessoperationsthroughdirectwholesale
purchasesonameasuredbasis.Whatwe'veseenrecentlyisawholesale
buyersellingasignificantvolumeinmarket.We'vechangedthetermsof
wholesalepurchasingtolimitmarketimpactinthefuture.
IhavesomethingIwanttodiscusswithRippleLabs,whatisthebestway
formetodoso?
Talktothebusinessdevelopmentteamatpartners@ripple.comorthe
developerrelationsteamatdevelopers@ripple.com.
Copyright2014AndrewWhite
Iwanttostartacurrencyissuinggateway,butIhavenoexperienceand
nocapital,howdoIgetstarted?
FirstofallIapplaudyourenthusiasmforRippleandaddingvaluetothe
network.HoweverIwouldadviseagainststartingagatewayonyourown.
Gatewaysarepowerfultoolsandwithnobackgroundincompliance,
regulations,orthetechnicalriskswithusingRippleyouwouldbedoing
yourcustomersadisservicestartingoutwithnoexperience.Iwould
suggestyoufindsomeequallyexcitedpartnerswithexperienceinthe
paymentsindustryordigitalcurrenciesbeforemovingforward.
AtOMG
weuseaveryrobustsystemofmultipleserverstodeploythegatewayfor
redundancy,security,andqualityofservice.Rippleisnotthekindof
softwarethatyoucaninstallonceandyourealldone.Rippleissomeof
themostcomplexanddemandingsoftwarearound.Settingupagateway
onyourownislikelearninghowtoflyahelicopterforthefirsttimeand
tryingnottocrash.Usingenterprisegradebankingsoftwareisnottobe
takenlightly.
Idontunderstandallofthisandthisbookhasmadememoreconfused
thenwhenIbegun!
ImsorrytohearthatbutasIsaidearlieritisalsototallyfine.Youdont
needtoknowexactlyhowatransmissionworkstodriveacarandyou
dontneedtoknowallabouttheunderlyingcomponentsforhowthis
works,Idontknoweverythingeither!
Copyright2014AndrewWhite
Iwanttolearnmoreaboutcryptography,wheredoIstart?
Imgladtohearyourinterestinthisitisahobbyofmineaswell!
Wikipediaisoneofmyfavoriteresources.Anothergreatexampletolearn
thebasicprincipalsisillustratedatthislink
http://www.moserware.com/2009/09/stickfigureguidetoadvanced.html
WherecanIlearnmoreaboutthesocalledByzantineGenerals
problem?
Theoriginalpaperdescribingasolution(backin1982!)canbereadat
http://research.microsoft.com/enus/um/people/lamport/pubs/byz.pdf
Glossary
AnonymousUntraceableactivity.Contrarytosensationalmedia
reporting,neitherBitcoin(orRipple)areanonymous.
BitcoinAproofofworkdigitalcurrencycreatedin2009.Thebenefitsof
Bitcoinisthatitisnearlyimpossibletocounterfeit(i.e.,makefakeBitcoin)
whichmakesitusefulforonlinepayments.Bitcoinsolvedtwo
longstandingacademicproblems,thedoublespendproblemandthe
ByzantineGeneralsproblemthatallowsittoworkinasecure,
decentralizedmanner.
CodiusThisisatechnologyneutralframeworkforcreatingsmart
contracts.Moreinfocanbefoundat
http://codius.org/
Copyright2014AndrewWhite
CustodianThisistheholderoffunds.Ifyouholdthedigitalcurrencyina
walletonlyyoucontrol,youarethecustodian.Youshouldnotholdmore
fundswithacustodianthenyouareafraidtolose.
DueDiligenceistheprocessofthoroughresearchbeforemaking
investments.
EnterprisesincludebusinessstartupsintheRippleecosystem,suchas
newgatewayservices,merchantservices,remittanceoptions,charities,
experimentalhobbies,andcommoditiesallarepromisingareasfor
businessinnovatorsandearlystageinvestors.
Gatewayaserviceproviderthatenableuserstodepositmoneyintoand
withdrawmoneyoutoftheirgatewayaccountsontheRipplenetwork.In
technicaltermsagatewayisanassetissuer.Althoughmostuserswillnot
becomeagateway,thecapabilityforthemtobecomesoispresentin
everyRipplewallet.
GatewaydGatewaydisanopensourceserverthatmakesbuilding
applicationsontopofrippleeasier.Formoreinformationpleasesee
https://gatewayd.org/
HashIncomputerscienceterms,ahashisadigitalfingerprintof
something.Ahashmeasuresthebytesofanobjectsuchasafileand
computesanumberthatisspecifictoonlythespecificarrangementof
bytesinthatfile.Therearemanywaysofproducinghashesanddifferent
standardsareusedfordifferentpurposes.
MSBaregulatedactivityintheUnitedStatesrelatedtoaMoney
ServicesBusiness,i.e.,moneytransmission.
Copyright2014AndrewWhite
PublickeyThisisamathematicaladdressthatyoucangenerateforthe
purposeofsharingwithanyone.Apublickeyislinkedtoaprivatekeyyou
shouldnotsharewithanyone.
RipplestheRipplenetworksnativecurrency,representedbytheletters
XRP.InordertousetheRipplenetworkXRPmustbeused.Each
transactiondeletesatinyamountontheRippleledgerforever.
RippleClientThisisthesoftwarethatisusefulforuserexperienceson
webservicessuchasadigitalwallet.
RippleLabs,Inc.ownstheintellectualpropertyoftheRippleprotocol,
andpromotesRippleswideruseandgreaterusefulness.
RippleserverAlsoknowsasrippled,thisisthesoftwarethatconnectsall
rippleserverstogetherintoadecentralizednetworkaroundtheworld.
Gatewayoperatorsneedtouseoneinordertohavetheirserviceusethe
Rippleprotocol.
IOUisapromisethatacertainamountoffundsthattheIOUissuer
controlsarefundsinyouraccount.AnIOUontheRipplenetworkisan
assetcreatedbyaRipplegatewayindicatingIpromisetoredeemyoua
specificamountofthiscurrencyasset.
TraderpeoplewhousetheirRippleWalletstoexchangecurrencies
(govt.issuedcurrencieslikeUSD,CNY,etc.anddigitalcurrencieslike
XRP,BTC,etc.),functionallysimilartotradesmadeontheForeign
Exchange(FX)currencymarkets.
Copyright2014AndrewWhite
MarketMakersprovideliquidity(i.e.,money)thatallowspaymentsto
followapathwaybetweengateways.
SecurityTheattributeorprocessusedtosecuredatabymeansof
authentication,confidentiality,andintegritychecks.Thereisnosuchthing
asaperfectsecuritysystemonlyincreasedcostsordifficultyforan
attackertoovercomeit.
StellarARippleclonefundedbyStripe.com.Themaindifferencewith
RippleisthatStellartokensareaninflationaryassetinsteadofa
deflationaryone.AstoryonhowStellarcametobecanbefound
here
.
ValidatorsTherearededicatedcomputernodesthatconfirma
transactionisvalidthroughtheConsensusprocess.Validatorsarethe
keytotransactionverificationthresholdbeingreachedandonlyneedto
beusedbyexpertsorpeoplerunningprofessionalgateways.
Walletthedigitalaccountwhereindividualshold,access,andusetheir
digitalcurrenciesinRipple.
WalletVaultAwalletvault,alsocalledawalletblobistheencrypted
storageofRipplewalletsecrets.Thewalletvaultiscreatedinsuchaway
thattheservicehostingthewalletblobcannotreadthecontentsofthe
dataorcompromiseintegrity.
AbouttheAuthor
AndrewWhiteservesasthefounderof
OneMillionGateways
Inc.a
digitalcurrencyconsultingcompany.HealsoservesasSecretaryatthe
InternationalRippleBusinessAssociation,whereheadvisesbusinesses
oncomplianceandimplementations.Andrewhasbeenactiveforyearsin
Copyright2014AndrewWhite
theBitcoincommunitiesinSanFranciscosince2011andbeganusing
XRPamonthafteritscreation.
Copyright2014AndrewWhite