Bitcoin Forum

The Purpose: Basic example how ripple works. This was to help myself.

Here is a diagram of what was created:
https://dl.dropbox.com/u/12679676/pichost/loz001.jpg

I created 5 ripple accounts for my country Zed. The currency is ZZZ.

Two Banks:
1) BankOfZed (Issuer of ZZZ)
2) SecondBankOfZed

Three Citizens
1) AlanFromZed who banks with BankOfZed
2) BobFromZed who banks with BankOfZed
3) ChrisFromZed who banks with SecondBankOfZed

Trust & Deposits:
* Alan first trusts his bank for 5,000 ZZZ (this is not a deposit, just trust)
* Alan sends (in person) 1000 ZZZ to his bank, the bank sends (in ripple) 1000 ZZZ IOU
* I did the same for Bob (5000 trust, 700 sent) and Chris (10000 trust, 3000 sent)
* BankOfZed trusts SecondBankOfZed for 500,000
* SecondBankOfZed trusts BankOfZed for 1,000,000

The payment:
* Chris can now send 25 ZZZ to Bob through obvious channels

After:
* Chris has a 2975 IOU from SecondBankOfZed
* Bob has a 725 IOU from BankOfZed
* BankOfZed has a 25 IOU from SecondBankOfZed

Here is what the ripple accounts looked like after the transfer:

https://dl.dropbox.com/u/12679676/pichost/loz002.jpg

To Continue:
* Would anyone like to be a citizen of Zed? I'll issues 1000 ZZZ for 0.001 BTC. I'll buy them back too.
* Would anyone like to create their own currency from their own central bank (say YYY)?
* Would anyone like to create an exchanger so we can trade ZZZ for YYY, etc?
* Someone should try to create fake ZZZ? I'm not convinced this can't all blow up.

Data of accounts:
BankOfZed,ra88Lr8fyo9cUTuyjVFMTrvTSBU93erjyh
AlanFromZed,rhR5j5LXsujSuwG2bcn1P39utdTA79ceaW
BobFromZed,r4ixnhDRE5VktpgtFkw5L8v1bNGsFusQJS
ChrisFromZed,rPA9PquwamoriknybdishCdWp6N1m2iEF8
SecondBankOfZed,rnqQ7YEStMBBqn6qBP4AYsyGhy1RKfUeRR

Would be interesting to issue a currency based on folding@home. You could trade work units for xrp.

Come to think of it that would be a nice way to issue ripples. If you could prove you did the folding you get issued some coins.