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Re: Researching to leverage Hashed-Timelock Agreements (HTLAs) paradigm for establishing atomicity between different DLT networks for asset swaps with full decentralization

From: Ahmed Khaleel <akhaleel@pixelalpha.io>
Date: Thu, 8 Nov 2018 20:02:32 -0600
Message-ID: <CAHeSAC=RgZ7ryO0SkWJnVD24=kAjGU7CTaHNL84qLezZhbqR1A@mail.gmail.com>
To: Nathan Aw <nathan.mk.aw@gmail.com>
Cc: ledger@ietf.org, public-interledger@w3.org
You are correct Nathan, Im sure Evan can attest to this.

I have tested many hypothesis.  Evan and his team clearly built elements of
the protocol to solve for illiquidity and the optimization of liquidity.
We have successfully created an exchanger using ILP.  We’re currently
working on building a full featured decentralized exchange powered by ILP.

I’m certain as the cryptocurrency/blockchain industry grows, liquidity will
not be an issue.

Ripple is doing big things and have a long term goal of not only dominating
payments and replacing the current Swift protocol.

I’m new to the community.  I have a goal to implement a bigger project
around ilp, coil and either Ripple or Stellar. Depending on the progress of
Codius.

Many ethereum smart contract implementations were hypothesized by Ripple
before Ripple put the project on hold.  Unfortunately Stellar has
implemented a bit more with smart contracts, but I believe Stefan Thomas is
going to innovate smart contracts in big ways.

I wish I could get a chance to speak to Xpring to back our team and
project, but unfortunately I don't have a direct connection with Ripple
Labs or Xpring. I have a direct connection with Stellar and Jed so that’s
why we are considering using the Stellar blockchain, because we will likely
recieve a grant from them.  I suppose that’s the way the cookie crumbles.

Have you read the the Puglist Ventures Ripple analysis report?   There is a
reason Ryan Zagone and the IMF are speaking, is the inevitable death of the
Eurocurrency in the coming years. SDR which is made up of four fiats, one
of which is the Eurocurrency.  The SDR will need to be completely
restructured.  I truly believe Legarde is strongly considering XRP as the
new SDR or the replacement of the Eurocurrency.

I also encourage you guys to read the UN 2030  report.  One of the
milestones is a new payments system by 2020, which matches up with the
Federal Reserves mandate of a new payment system by 2020.  This is clearly
why the Gates foundation built Mojaloop using ILP and Coil.  The cost of
remittance will essentially go to zero.

My guess is a large number of banks will implement R3’s pseudo-blockchain
with Xrapid.  Many other banks will create their own customized
blockchains, but I believe Xrapid will be implemented by Swift.  Swift is a
cooperative which serves over 200 currencies and over 11,000 financial
institutions.  Over time the speed of transactions on the Ripple network
will get faster and faster, and we will probably see transactions  in micro
seconds eventually.  The reduction of transaction speed  essentially
eliminates the risk of using XRP as an intermediary by financial
institutions , even if the XRP volatility is higher than fiat.  The central
banks will likely develop national digital currencies sooner than later,
which should theoreticaly eliminate the need of gateways.  Ever though
Ripple has partnered with major credit cards and remittance companies, I
think ultimately it will become zero sum game with remittance apps such as
Majaloop.




On Thu, Nov 8, 2018 at 9:34 AM Nathan Aw <nathan.mk.aw@gmail.com> wrote:

> Hi Ahmed,
>
> Right, if I understood correctly, what you are saying is that liquidity is
> the key requisite in such a gridlock resolution mechanism.
>
> Correct me if I am wrong?
>
> Thank you.
>
> Regards,
>
> Nathan Aw
>
>
> On Thu, Nov 8, 2018 at 12:35 PM Ahmed Khaleel <akhaleel@pixelalpha.io>
> wrote:
>
>> Theoretically it’s sound but the market liquidity isn’t there yet.  I’m
>> finishing up an ilp exchanger and working on an exchange next.   I did alot
>> of experimenting and one solution seems to be the best as far as
>> efficiency.  This will likely change in time
>>
>>
>> On Fri, Oct 12, 2018 at 11:41 AM Nathan Aw <nathan.mk.aw@gmail.com>
>> wrote:
>>
>>> Hi all,
>>>
>>> I am a blockchain engineer based out of Singapore working at a leading
>>> bank in ASEAN.
>>>
>>> I am looking to leverage the Hashed-Timelock Agreements (HTLAs) paradigm
>>> for establishing atomicity between different DLT networks for asset swaps
>>> to achieve cross border payments with partial to full decentralization in
>>> mind.
>>>
>>> With the goal in mind, I like to understand technically how can this
>>> paradigm be applied to achieve payment vs payment (pvp) with semi-trusted
>>> nodes such as clearinghouses, banks and individual players? Applying the
>>> same concept of a crypto swap between ETH and BTC, the same can be applied
>>> between SGD and HKD?
>>>
>>> Also, I hope to understand the models around how liquidity can be
>>> maintained between these nodes?
>>>
>>> Thank you!
>>>
>>> Regards,
>>>
>>> Nathan Aw
>>> https://sg.linkedin.com/in/awnathan
>>> https://erc725alliance.org/
>>>
>>>
>>>
Received on Friday, 9 November 2018 02:03:06 UTC

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