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Offline Rune

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ripple-style IOU gateway functionality!
« on: November 23, 2014, 06:43:53 PM »

So I just listened to the mumble hangout and apparently this is going to be a thing (hopefully in 1.0?).

This is probably the biggest news since the merger, as it copies the core feature of ripple and makes it significantly easier for anyone to run a BTS/bitasset on-ramp. I think there could likely be a rally once the market realises the actual ramifications of this getting implemented in bitshares. IMO it is bigger than counterparty copying the ethereum scripting language.

More excited than ever for the future of BTS!

Offline BldSwtTrs

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Re: ripple-style IOU gateway functionality!
« Reply #1 on: November 23, 2014, 06:52:01 PM »
I don't understand what are the ramifications, could you please enlight me?

Offline btswildpig

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Re: ripple-style IOU gateway functionality!
« Reply #2 on: November 23, 2014, 07:20:18 PM »
Now bter has 100+ BTC volume on BTS .

Imagine 1000+ people offers even 0.1 BTC quota to operate a small gate way in order to let BTC value in and out of the system, it would be more than bter's volume , and less risk (decentralized gateway group) .

It would easily multiple BTS volume with a lot small gateways .
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Offline fuzzy

Re: ripple-style IOU gateway functionality!
« Reply #3 on: November 23, 2014, 07:49:21 PM »
Now bter has 100+ BTC volume on BTS .

Imagine 1000+ people offers even 0.1 BTC quota to operate a small gate way in order to let BTC value in and out of the system, it would be more than bter's volume , and less risk (decentralized gateway group) .

It would easily multiple BTS volume with a lot small gateways .

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Rune is on top of his stuff. I too was very very pumped about this...but I think many who were there were also quite pumped
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Offline Riverhead

Re: ripple-style IOU gateway functionality!
« Reply #4 on: November 23, 2014, 07:56:32 PM »
Yes. Listened to it yesterday and feel this is one more big step toward mass adoption.

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Offline BldSwtTrs

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Re: ripple-style IOU gateway functionality!
« Reply #5 on: November 23, 2014, 08:08:41 PM »
Now bter has 100+ BTC volume on BTS .

Imagine 1000+ people offers even 0.1 BTC quota to operate a small gate way in order to let BTC value in and out of the system, it would be more than bter's volume , and less risk (decentralized gateway group) .

It would easily multiple BTS volume with a lot small gateways .
Who's going to trust this 1000+ people with their value?

As far as I understand with Ripple you need to trust the gateways, so I see no value in having a lot of small gateways with no reputation.
« Last Edit: November 23, 2014, 08:12:48 PM by BldSwtTrs »

Offline Rune

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Re: ripple-style IOU gateway functionality!
« Reply #6 on: November 23, 2014, 08:38:22 PM »
The best way to figure out what this will mean for BTS is to research how ripple works.

The idea is that anyone who runs a BTS gateway can seamlessly issue IOU's in return for deposits they receive, and if the issuer of these IOUs is trustworthy then they will be worth their nominal value, and can be traded on the DEX (internal decentralized exchange) for bitassets, BTS, or even the IOUs of other gateways.

So if bter.com decides to become a CNY gateway it means that you can send them CNY and they will send you the IOU token bterCNY in return. Holding bterCNY in your bitshares wallet is as good as having CNY on the bter exchange, and on the DEX there will be bterCNY markets, such as bterCNY/BTS, bterCNY/bitCNY, or bterCNY/btc38CNY that function just like the bitasset markets we currently know (except no leverage/shorting). In addition to making the aggregate market a lot more transparent, it also means that people no longer have to deposit their BTS on to bter.com if they want to trade it for CNY, increasing security and reducing exchange centralization.

What makes this even more mindblowing is the fact that bitcoin public/private key pairs will soon be useable on the bitshares blockchain, meaning that you can send bitshares directly to bitcoin addresses, and the owner of the private key for that address will be able to use the coins if he runs the BTS client and has imported his private key into it. This enables extremely convenient onramp systems where you can send bitcoin to a gateway address (the bitcoin address of someone running a BTS gateway), and the gateway will instantly send you IOU BTC back to the bitcoin address you sent them from (remember that these IOU's are tokens that reside on the BTS blockchain). You can then instantly go to the bitshares DEX and trade the BTC IOU's for bitBTC, BTS, bitUSD, or whatever you want. BTS is then essentially directly integrated into bitcoin, and any bitcoin user who also runs the BTS node has instant access to all of BTS' features (almost as well integrated as counterparty).

The gateway system doesn't even need a website or anything like that, all it needs is a server running the gateway software and a public bitcoin address held by someone who can be trusted. There will probably be many delegates and prominent community members who set up gateways like this because it's going to be so easy to do, so we can reasonably expect to see big IOUBTC/BTS volume on the DEX with low spreads.

Once bitstamp begins to issue bitstampUSD as a BTS gateway (like they currently are a ripple gateway), then moon.

Offline monsterer

Re: ripple-style IOU gateway functionality!
« Reply #7 on: November 23, 2014, 09:59:12 PM »
then instantly go to the bitshares DEX and trade the BTC IOU's for bitBTC, BTS, bitUSD, or whatever you want. BTS is then essentially

This sounds interesting, but I'm a touch confused because a bitBTC is already an IOU for 1 BTC, so what are these other IOUs that you're talking about?
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Offline sparkles

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Re: ripple-style IOU gateway functionality!
« Reply #8 on: November 23, 2014, 10:05:07 PM »
then instantly go to the bitshares DEX and trade the BTC IOU's for bitBTC, BTS, bitUSD, or whatever you want. BTS is then essentially

This sounds interesting, but I'm a touch confused because a bitBTC is already an IOU for 1 BTC, so what are these other IOUs that you're talking about?

BitBTC is a collateralized IOU backed by the block chain.
BterBTC is an un-collateralized IOU backed by the issuer.

I hope to use this gateway function to bootstrap price discovery on Sparkle by using the built in exchange. 

Offline jsidhu

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Re: ripple-style IOU gateway functionality!
« Reply #9 on: November 23, 2014, 10:06:19 PM »
Wouldnt the on off ramps be considered money transmitters and thus be liable to regulations? They can only be trusted if they open a registered company and put their neck on the line ofcourse making profit for the ramp as a business. I wouldnt trust a community member by his her word we seem that movie too many times with bitcoin early days
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Offline Rune

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Re: ripple-style IOU gateway functionality!
« Reply #10 on: November 23, 2014, 10:19:40 PM »
Wouldnt the on off ramps be considered money transmitters and thus be liable to regulations? They can only be trusted if they open a registered company and put their neck on the line ofcourse making profit for the ramp as a business. I wouldnt trust a community member by his her word we seem that movie too many times with bitcoin early days

A fiat gateway will absolutely need to be licensed. We'll probably only see fiat gateways that are either crypto exchanges or perhaps eventually banks. BTC gateways can be anonymous so they cannot really be prosecuted. Check out the companies that are ripple gateways now, they will probably be the first we try to get on board as fiat gateways since the software they already use will be very similar to ours. Thinking about it, perhaps it will even be possible for us to make software that basically piggybacks off ripple in a way that allows us to use all their gateways to let the end user instantly convert rippleIOUs to BTS network tokens in what appears as a single step.

Offline sparkles

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Re: ripple-style IOU gateway functionality!
« Reply #11 on: November 23, 2014, 10:31:56 PM »
Wouldnt the on off ramps be considered money transmitters and thus be liable to regulations? They can only be trusted if they open a registered company and put their neck on the line ofcourse making profit for the ramp as a business. I wouldnt trust a community member by his her word we seem that movie too many times with bitcoin early days

A fiat gateway will absolutely need to be licensed. We'll probably only see fiat gateways that are either crypto exchanges or perhaps eventually banks. BTC gateways can be anonymous so they cannot really be prosecuted. Check out the companies that are ripple gateways now, they will probably be the first we try to get on board as fiat gateways since the software they already use will be very similar to ours. Thinking about it, perhaps it will even be possible for us to make software that basically piggybacks off ripple in a way that allows us to use all their gateways to let the end user instantly convert rippleIOUs to BTS network tokens in what appears as a single step.

Ripple is not anonymous if you are dealing with any major gateway IOUs.  There is a reason Ripple is gaining traction with the banks, it allows the banks to comply with all laws and KYC. 

Offline speedy

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Re: ripple-style IOU gateway functionality!
« Reply #12 on: November 23, 2014, 10:56:42 PM »
Just to be clear, if I send CNY to bter, I then transfer the bterCNY from my Bter web-wallet into my BitShares wallet ?

So this cuts out the step of having to buy BTS/bitCNY from inside bter - the volume on bter might be relatively thin compared to the decentralized exchange.

Sounds great. Question is what did Ripple have to do to get Bitstamp to become a Ripple gateway.

Offline liondani

Re: ripple-style IOU gateway functionality!
« Reply #13 on: November 23, 2014, 11:14:16 PM »


Question is what did Ripple have to do to get Bitstamp to become a Ripple gateway.

As far as I know bitstamp is already a ripple gateway  ...



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Offline speedy

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Re: ripple-style IOU gateway functionality!
« Reply #14 on: November 23, 2014, 11:16:07 PM »
Yeah what I meant was what steps do we have to copy...

 

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