Ripple: A Distributed Exchange for Bitcoin

[misterbigg]

Why do I see so many calls for implementing distributed Bitcoin exchanges or putting up more robust/centralized Bitcoin exchanges when we will soon have Ripple, which perfectly provides distributed order books?

[Minor Miner]

Why do I see so many calls for implementing distributed Bitcoin exchanges or putting up more robust/centralized Bitcoin exchanges when we will soon have Ripple, which perfectly provides distributed order books?

Can you direct me to more info?   Why do you have your ignore button glowing?

[misterbigg]

Can you direct me to more info?

http://opencoin.com/
http://ripple.com
https://ripple.com/wiki/

Why do you have your ignore button glowing?

A handful of people have put me on ignore because I said that Litecoin sucks.

[Minor Miner]

I will read it.   Have browsed.   What is the timing and rollout plan?
I am only interested if it is focused on bitcoin (understand it must take fiat too), not some replacement coin.

[mmeijeri]

Why do I see so many calls for implementing distributed Bitcoin exchanges or putting up more robust/centralized Bitcoin exchanges when we will soon have Ripple, which perfectly provides distributed order books?

I had the same question. It doesn't help that Ripple is still in beta and you have to jump through a few hoops to get in. I had to find someone on Reddit who was willing to exchange XRP for BTC, open an account at bitstamp, deposit some BTC and transfer it to Ripple so I could buy some more XRP. With the additional XRPs I'm hoping to help a friend get in tonight or tomorrow.

[mmeijeri]

I am only interested if it is focused on bitcoin (understand it must take fiat too), not some replacement coin.

They have their own currency called Ripple or XRP, but you can trade between XRP and BTC, and between either XRP/BTC and a number of major world currencies. The good thing is that it provides a payment system without the exchange rate risk of BTC and a distributed exchange that can provide a robust and resilient alternative to Mt Gox for getting BTCs into the real economy.

[Gabi]

Meh, the problem of ripple is the same of bitcoin, very few people use it. Yes, if everyone use ripple, then it would be good as an exchange for bitcoin. But well, then if everyone use bitcoin, we would not even need an exchange.

[Este Nuno]

This could be it.

[Bitcoinm]

I see a fundamental flaw as the risk of people defaulting.  Its like Bitcoin but using IOU's, and we all know you don't have Bitcoins if someone says they owe you some; you have Bitcoins if they're sitting in your wallet.  They want you to only use trusted people of course, but this whole IOU system seems tough when you actually need to collect from someone.

[mmeijeri]

Meh, the problem of ripple is the same of bitcoin, very few people use it. Yes, if everyone use ripple, then it would be good as an exchange for bitcoin. But well, then if everyone use bitcoin, we would not even need an exchange.

No, one of its strengths is that it allows you to make payments in fiat currencies too. It would be a perfect mechanism to help BTC grow. Of course, it's also a perfect mechanism to make XRP grow and outcompete BTC. If you care about free money (free as in speech, not as in beer) then XRP would be great too and there might not be much reason to prefer BTC. If you already have holdings of BTC, or mining income in BTC, that might be different.

Then again, a Ripple-like system could be built on top of a BTC or LTC block chain too and that might lead to healthy competition.

We live in interesting times!

[mmeijeri]

I see a fundamental flaw as the risk of people defaulting.  Its like Bitcoin but using IOU's, and we all know you don't have Bitcoins if someone says they owe you some; you have Bitcoins if they're sitting in your wallet.  They want you to only use trusted people of course, but this whole IOU system seems tough when you actually need to collect from someone.

In the initial stages it sure beats using a relatively slow system like Bitcoin that also has incredible volatility. Until the exchange rate stabilises again, BTC will be mostly useless for real world payments. And in the long run gateways will make fiat transfers to strangers much more convenient.

[greBit]

Seems I was under the wrong impression that ripple was not open source, dunno why.

Definitely a lot of things that I like about what is written down there. Notably:

• Having light clients that run as browser extensions
• Not needing to download a blockchain

Is there a forum topic / page where Ripple is criticised, so I can see some of its disadvantages?

Do you need to have pre-established social connections with people that you trust for settling debts etc?

What happens if your buddy defaults?

[natewhatever]

Right now is a test of Ripple's strategic capabilities.

If Ripple would lower the barriers to entry NOW they could increase the public's awareness of Ripple, save BitCoin the drag along the floor that is otherwise coming, increasing confidence in digital currencies and guarantee their place in the new ecosystem with everyone looking for a solution for the volatility of the exchanges.

I too had to go to a lot of trouble to get into Ripple, and now that I'm in I can't do much because I don't know anyone, and finding gateways isn't easy because there aren't many, because of its general small user base. Now is the perfect time to grow it, grow their services value, and be the hero for BitCoin and digital currencies.

Don't miss your chance, Ripple!

[QuantumQrack]

Why do I see so many calls for implementing distributed Bitcoin exchanges or putting up more robust/centralized Bitcoin exchanges when we will soon have Ripple, which perfectly provides distributed order books?

Excellent, thank you for the post.

[Este Nuno]

Could Western Union be a ripple gateway? Would they be allowed to charge their fees on top of ripple or not? Either way, that would be the killer app of Ripple if something that like were to occur.

[JoelKatz]

Seems I was under the wrong impression that ripple was not open source, dunno why.

The server is not open source yet. Once the server is open source, we'll have to obtain a consensus on every feature change that affects what transactions are valid or what effects they have, just like Bitcoin does. I used to say we sometimes make those kinds of changes three times a day. We're probably down to once a week at most now.

Do you need to have pre-established social connections with people that you trust for settling debts etc?

Only if you want to use Ripple as a platform for social/community credit.

What happens if your buddy defaults?

If you choose to trust someone and they default, then you lose whatever money you trusted them to borrow from you or hold for you. We're not promoting Ripple as a social/community credit platform right now but rather as a payment and exchange system. (Though I have high hopes for it in the future.)

[tclo]

Right now it seems like a major limitation for people in the USA is how to get USD into their ripple acct.  They only accept Bitstamp and Weexchange.  Bitstamp is not good for USA unless you want to send an international wire, which is a hassle.   I can't figure out any other way to get money into Bitstamp.  Some people say Bitinstant, but it doesn't seem to support moving funds into Bitstamp any more..correct me if I'm wrong.

Weexchange has a horrible website that won't even let me register.

[greBit]

Seems I was under the wrong impression that ripple was not open source, dunno why.

The server is not open source yet. Once the server is open source, we'll have to obtain a consensus on every feature change that affects what transactions are valid or what effects they have, just like Bitcoin does. I used to say we sometimes make those kinds of changes three times a day. We're probably down to once a week at most now.

Do you need to have pre-established social connections with people that you trust for settling debts etc?

Only if you want to use Ripple as a platform for social/community credit.

What happens if your buddy defaults?

If you choose to trust someone and they default, then you lose whatever money you trusted them to borrow from you or hold for you. We're not promoting Ripple as a social/community credit platform right now but rather as a payment and exchange system. (Though I have high hopes for it in the future.)

Ah cool, thanks for the clarifications. It does sound awesomely promising

[knybe]

saw this the other day on youtube; How Ripple Works - Gateways and Pathways

hope it's not redundant...

http://www.youtube.com/embed/M16ZatXbmLg

[justusranvier]

We're not promoting Ripple as a social/community credit platform right now but rather as a payment and exchange system. (Though I have high hopes for it in the future.)

The low hanging fruit right now would to get all the major exchanges acting as Ripple gateways in order to allow fiat to more easily enter the BTC ecosystem and move through it. If users were able to deposit their local currency at whichever gateway was most convenient and move that to any trading account it would drastically improve things. Likewise for withdrawals.

Is this something that you're working on, is it even possible to do without enormous legal/regulatory challenges?