DTC - Datacoin IOUs to be traded on Ripple network

[jl777]

I am announcing that I am working with maxsolnc to create a distributed exchange for DTC using ripple. Once this is setup you will be able to trade DTC without commissions or fees using the standard ripple wallet's trade page.

I am new here, but am very active within the ripple community and have the  support of Ripple Labs. Assuming that we can get a nice launch of DTC, there should be some nice press releases about this and that can only help with the popularity of DTC.

The following document explains the basics of ripple https://ripple.com/ripple_primer.pdf

I will do my best to make the whole ripple signup process as smooth as possible, but it hasn't been automated yet. I will be working on adding DTC support to my automated market maker so there will always be a competitive price quote for DTC within ripple. Since this is being done on a volunteer basis, there are no commissions being charged, no fees. Totally frictionless trading. The price you see in the order book is what you get.

In order to trade on Ripple, you will need a ripple wallet, which you can get in 2 minutes from https://ripple.com/client/#/register

If you want to simply purchase it, you can do it without doing any deposits if you get enough XRP and there are plenty of ways to do that.

To redeem your DTC, you can simply convert it to something else or sell it on the order book. If you want to receive the actual DTC, you can redeem it by returning it along with your DTC address and you will receive the DTC.

Ripple is a bit more complicated than most systems, but the advantage is that once we get a real market going with DTC, we will be able to automatically convert it to any currency within ripple, including BTC, USD, CNY, etc. using the send command. Transactions take a few seconds, and it uses a distributed ledger, so no centralized exchange that is vulnerable to a Ddos attack.

I will post more details as we get closer to launch. We will start with a small scale beta test and depending on the response, I might even start working on automating the whole deposit/withdrawal process. I know that is what everybody really wants.

Thanks for your support!

James Lee

[maxsolnc]

I confirm that. Cryptsy still doesn't want to add Datacoin (haha, they don't have money for some more hundreds GB - what do you think about that?), the only way to buy it is BTEr (coin-e have very low volumes). So we need other ways to trade Datacoin, and Ripple can help with this task after some testing.

[tokeweed]

What other altcoins are you planning to trade in Ripple? 

[jl777]

Datacoin is the first of hopefully many. I want to get as many altcoins actively traded within Ripple. It is a functioning distributed exchange that already implements colored coins.

The hardest part of getting an active market is finding an issuer that the traders will trust enough to trade with. The transactions happens in a few seconds and as long as things stay inside of ripple, the distributed ledger keeps track of everything.

The only external interface is the so called gateway. That's just a fancy term to mean a way to deposit/withdraw the thing being traded. Just a matched pair of transactions.

Deposit: altcoin -> gateway acct, ripple altcoin -> depositor's ripple acct
Withdrawal: depositors ripple acct sends ripple altcoin to gateway acct, gateway sends actual altcoin to altcoin wallet.

By doing all the trading inside of ripple it avoids any transfer fees a coin might have. Of course, ripple has the provision for gateways to charge a transfer fee, but I am a strong advocate of frictionless trading and the markets I make are in issues without transfer fees. There are no commissions since it is a distributed peer to peer trade.

By having each altcoin's key moderator be the issuer of the ripple version, it instantly becomes something each community can get behind. No more relying on small exchanges, or begging for the larger exchanges to list your altcoin. I am working on getting a fully automated gateway package so a new altcoin can be supported very quickly and minimize the effort required for the issuer.

I am just me and can only do so much, but I have prepped the ripple community to help out and they are eager to welcome new ripplers.

I would be happy to be the contact point for getting new coins supported.

James

[maxsolnc]

It is really great thing. It will attract more people both to Datacoin and to Ripple, so it will be profitable for both sides.

[markm]

An issuer. Riiiiight.

Please correct the thread-title.

Something like "Datacoin IOUs to be traded on distributed exchange" or, better,

"Datacoin IOUs to be traded on Ripple network".

(Are you so ashamed of Ripple you need to conceal the fact the thread is about using Ripple?)

-MarkM-

[maxsolnc]

An issuer. Riiiiight.

Please correct the thread-title.

Something like "Datacoin IOUs to be traded on distributed exchange" or, better,

"Datacoin IOUs to be traded on Ripple network".

(Are you so ashamed of Ripple you need to conceal the fact the thread is about using Ripple?)

-MarkM-

you're right. Jl77, please, correct the title.
Mark, we have problems with getting on cryptsy (see above). People come to me and ask: where can we buy/sell DTC, we don't want to use bter. So we need to try all possible ways, and Ripple trading will be some kind of test - low amounts for the first time, just checking the system.

[markm]

I have no problem with using RIpple, I would have fired up gateways for many coins and assets myself when the rippled source code was released were it not that I was warned/advised that the gateway code that was released was not fit/intended for real use.

-MarkM-

[maxsolnc]

I have no problem with using RIpple, I would have fired up gateways for many coins and assets myself when the rippled source code was released were it not that I was warned/advised that the gateway code that was released was not fit/intended for real use.

-MarkM-

can you explain this 'code not fit/intended for real use'? I'm very new to Ripple, so maybe you should discuss that with Jl77.

[jl777]

Changed the title.

Ripple is still in beta release, but about $1 million USD per day is being traded there, so that's pretty real.

James

[jl777]

I have heard that justcoin has a pretty nice gateway implementation and it is open source

https://github.com/justcoin/snow

I'm not a website programmer so have been procrastinating delving into this. If anybody has the right experience, it could be a very simple matter to customize it for different altcoins. I'm not doing the gateway to make money, so no need to keep track of fees, etc. My motivation is more long term as a significant DTC owner and XRP owner, it is in my interest that they both do as well as possible.

James

[markm]

I have no problem with using RIpple, I would have fired up gateways for many coins and assets myself when the rippled source code was released were it not that I was warned/advised that the gateway code that was released was not fit/intended for real use.

-MarkM-

can you explain this 'code not fit/intended for real use'? I'm very new to Ripple, so maybe you should discuss that with Jl77.

The example they gave me was that it has no recovery process whereby if you lost power (a fuse blows, your host decides to reboot your machine, or whatever) it would on reboot know exactly what parts of which operations had completed and what parts still needed doing.

So I guess maybe, no "transactions with rollback" type functionality akin to what the kinds of databases demanded for financial applications have?

As just one example. The general idea was that the code is merely a sketchy sketch of the very basic purely ripple-related aspects of what a real gateway would need to do, but lacking all the real stuff a real gateway would, regardless of ripple, need to do in order to be a secure and robust financial application able to recover from unexpected failures in the midst of uncompleted database operations, resist all the various CSS and cross-site and injection type attacks financial sites attract and so on and so on and so on.

Basically "if you had a real secure stable robust gateway platform, here is a quick sketch of the kind of code you'd need to add to it to make it able to work with ripple" or something like that. A far cry from being an actual real-use gateway.

-MarkM-

[ianspain]

I am announcing that I am working with maxsolnc to create a distributed exchange for DTC using ripple. Once this is setup you will be able to trade DTC without commissions or fees using the standard ripple wallet's trade page.

I am new here, but am very active within the ripple community and have the  support of Ripple Labs. Assuming that we can get a nice launch of DTC, there should be some nice press releases about this and that can only help with the popularity of DTC.

The following document explains the basics of ripple https://ripple.com/ripple_primer.pdf

I will do my best to make the whole ripple signup process as smooth as possible, but it hasn't been automated yet. I will be working on adding DTC support to my automated market maker so there will always be a competitive price quote for DTC within ripple. Since this is being done on a volunteer basis, there are no commissions being charged, no fees. Totally frictionless trading. The price you see in the order book is what you get.

In order to trade on Ripple, you will need a ripple wallet, which you can get in 2 minutes from https://ripple.com/client/#/register

If you want to simply purchase it, you can do it without doing any deposits if you get enough XRP and there are plenty of ways to do that.

To redeem your DTC, you can simply convert it to something else or sell it on the order book. If you want to receive the actual DTC, you can redeem it by returning it along with your DTC address and you will receive the DTC.

Ripple is a bit more complicated than most systems, but the advantage is that once we get a real market going with DTC, we will be able to automatically convert it to any currency within ripple, including BTC, USD, CNY, etc. using the send command. Transactions take a few seconds, and it uses a distributed ledger, so no centralized exchange that is vulnerable to a Ddos attack.

I will post more details as we get closer to launch. We will start with a small scale beta test and depending on the response, I might even start working on automating the whole deposit/withdrawal process. I know that is what everybody really wants.

Thanks for your support!

James Lee

This is great news ;-)

[maxsolnc]

I have no problem with using RIpple, I would have fired up gateways for many coins and assets myself when the rippled source code was released were it not that I was warned/advised that the gateway code that was released was not fit/intended for real use.

-MarkM-

can you explain this 'code not fit/intended for real use'? I'm very new to Ripple, so maybe you should discuss that with Jl77.

The example they gave me was that it has no recovery process whereby if you lost power (a fuse blows, your host decides to reboot your machine, or whatever) it would on reboot know exactly what parts of which operations had completed and what parts still needed doing.

So I guess maybe, no "transactions with rollback" type functionality akin to what the kinds of databases demanded for financial applications have?

As just one example. The general idea was that the code is merely a sketchy sketch of the very basic purely ripple-related aspects of what a real gateway would need to do, but lacking all the real stuff a real gateway would, regardless of ripple, need to do in order to be a secure and robust financial application able to recover from unexpected failures in the midst of uncompleted database operations, resist all the various CSS and cross-site and injection type attacks financial sites attract and so on and so on and so on.

Basically "if you had a real secure stable robust gateway platform, here is a quick sketch of the kind of code you'd need to add to it to make it able to work with ripple" or something like that. A far cry from being an actual real-use gateway.

-MarkM-

Got it, thanks.
Just now crypto trading seems to be in trouble: major exchanges have problems with engines or withdrawals\deposits, and small exchanges that seem to be stable (while they're small) have very little volumes. So Ripple doesn't look bad alternative even with this problem described by you. You can see how many money do users lose on Cryptsy, and it seems to me (just guessing) that Ripple will not cause so much problems for end users. Correct me if I'm wrong.

[markm]

I have not looked at "snow" in detail yet.

So currently I would stick with my Open Transactions server for tracking my assets (such as various kinds of cryptocoins) and leave a gap/chasm between IOUs that I issue ron RIpple and the owed to the IOU holders assets that I use my Open Transactions server to to track and trade and so on.

That way in the hopefully extremely unlikely event that someone wants me to send out on the blockchain the actual cryptocoins that my Open Transactions assets represent it will be me myself manually confirming that there really is due cause for me to go visit my safe-deposit boxes to get the pieces of my chopped up into many parts digitally so N of M parts are needed to put it back together stone cold frozen supercold wallets so as to send out the actual coins and close down support of that type of coin.

As my model is "more than 100% reserve" or "at least 100% reserve".

I hope and intend that the coins the assets on my Open Transactions server represents are totally securely stashed away in a vault "forever", as in until there is no foreseeable need for any tokens representing any such assets in the future.

When I close down, or when I am no longer going to support a certain kind of asset, then will be the time to go dig up the actual coins and un-issue the assets that represent them.

Until then I still hope that hot-wallet services, third party "exchangers" or "market makers" who trade real coins for the tokens and the tokens for real coins, will be third party services.

Even if I have to play the role of such a "third party" myself or set up a corporate entity to play that role myself. It is a totally separate and distinct role/operation.

So I would avoid the automated "Ripple gateway" code until absolutely sure it can be trusted, and even then I would have a logically/economically distinct entity run it, so that it never gets to touch the coins that the assets on my Open Transactions server represent.

That ensures the assets on the Open Transactions server are always 100% backed by real coins on blockchains even if a hot-wallet service that accepts blockchain coins in return for Open Transactions assets and vice versa loses all of its coins.

So to use Ripple to issue stuff on Ripple I would issue IOUs that say I owe you some of a certain asset that is on my Open Transactions server, rather than IOUs that say I owe you coins on a blockchain, because coins on a blockchain are deliberately extremely hard to remove from the super-secure deep-frozen cold wallets in which they are intended to reside until the end of time or the end of any ongoing need to back assets/tokens with them.

Ripple might really help with this need for third-party hot-wallet services, because people holding my IOUs on Ripple should be able to trade them around among any number of hot-wallet providers who will redeem them for on the blockchain coins, maintaining the security of the actual deep-frozen-wallet coins that the Open Transactions assets represent aka are backed by.

-MarkM-

[jl777]

I will be taking a Xmas holiday, so not sure how much time I will have, but everything you need to get going with a manual gateway setup is in place. I will be checking messages daily.

You can also ask for help/advice on the ripple forum https://ripple.com/forum/index.php

Merry Christmas everyone!

James