Ripple update: Technical question about xRapid
When financial institutions (e.g. banks) use xCurrent to settle funds, they do it “atomically”:
– Bank A escrows fiat with a connector, redeemable with the signature from bank B
– Connector escrows fiat with bank B, redeemable with the signature from bank B
– Bank B reveals signature to the connector and redeems fiat
– Connector reveals signature to bank A and redeems fiat
If bank B does not reveal its signature, nothing is redeemed and eventually the escrows time out.
I know xRapid still isn’t out, so there’s limited information, but would it also work in a similar fashion? For example:
– Bank A escrows fiat with exchange A, redeemable with the signature from bank B
– Exchange A escrows XRP with exchange B, redeemable with the signature from bank B (**xRapid**)
– Exchange B escrows fiat with bank B, redeemable with the signature from bank B
– Bank B reveals signature to exchange B and redeems fiat
– Exchange B reveals signature to exchange A, redeems XRP, and market sells for fiat (**xRapid**)
– Exchange A reveals signature to bank A, redeems fiat, and market buys for XRP
That sounds like the logical approach, as this nullifies the market risk of the transaction, but it would also mean that both exchanges would need to have a lot of extra XRP and fiat to account for the reverse ordering of transactions.
Could someone point me to an interview, article or thread where this is discussed?
About Ripple (XRP)
Ripple connects banks, payment providers and digital asset exchanges via RippleNet to provide one frictionless experience to send money globally. Banks and payment providers can use the digital asset XRP to further reduce their costs and access new markets. XRP is the fastest and most scalable digital asset today.
Author: ViaLogica
Score: 1
Don’t forget to share the post if you love it !
