The Reserve

2 January 2018 | SUBSCRIBE

// ‘RAPID’ RISE OF RIPPLE

Ripple has been building out sophisticated payment software, that leverages blockchain to allow low cost, rapid transactions of any currencies between two or more ledgers since its founding in 2012 - though its predecessor RipplePay was originally conceived in 2004.

This software is used by over 75 commercial partners - like UBS, American Express and Santander - to reduce their payment costs, time, and failure rates. It has experienced volumes of 15k transactions/second and can apparently match Visa at 50k transactions/second. There is a small 0.00001 XRP transaction fee to avoid the network being spammed, but otherwise, XRP is not the currency being sent in the transactions.

However, the same technology can use XRP as the currency - saving further costs. But this isn’t happening right now. Banks and payment providers just use Ripple to move fiat around, they don’t use XRP. Yet it has risen 10X over the last few weeks, to a market cap of ~$85billion.

However, XRP does have perhaps the greatest chance of becoming a global currency (not bitcoin), because it is centralised, run by a respectable entity, and will not build anonymity into the network. But this is not the libertarian crypto dream the sector often harks on about - it is ‘just’ a back office technology improvement to the existing system.

Happy New Year!

// MUST READS

Founder of Litecoin sells every last coin
Estonia will launch the Estcoin, and generally create a favourable jurisdiction for cryptocurrency.
Leaked video of the as-yet-unconfirmed Telegram messenger ICO.

// PRICING SUMMARY

// DISASTER OF THE WEEK

Australian banks are freezing customer accounts that have received funds from exchanges and have been flagged as associated with crypto.

// TRACTION

The NYSE and the Chicago Board Options Exchange apply for bitcoin ETFs.
Several bitcoin exchanges are closing their doors to new clients as demand outpaces their ability to onboard users, verify them, and process the current volume of transactions.
Japan’s softbank has developed a blockchain-based system to manage personal financial data.
Bitpay increased its minimum payment amount due to rising Bitcoin transaction fees to $100 - and then reversed the decision.

// ROAD TO REGULATION

South Korean proposes legislation to ban banks from direct involvement in cryptocurrency-related activities.
Russia will be bringing in a considerable amount of new legislation to cover crypto in March.
Estonia will launch the Estcoin, and generally create a favourable jurisdiction for cryptocurrency.

// ICOS

Last week highlights:

Bitdegree raised $22m for a blockchain-powered online education platform with token scholarships & tech talent acquisition.
Bankex raised $67m for a blockchain platform that enables the creation of smart assets.
SingularityNET raised $36m for a decentralized platform for the AI economy.
Gladius raised $12.5m for a decentralized solution to protect against DDoS attacks.

Upcoming:

Skara - January 23, 2018 - A multi-award winning game with a token at its heart.
OILSC - January 3, 2017 - Blockchain-based platform to manage oil and gas waste.
Gamblica - January 10, 2017 - Blockchain casino.

// OTHER

Interpol seeking ring-leaders of ‘Mining Max’ scam. A non-fungible token framework, ERC721.

Crypto-leader kidnapped, ransom paid in bitcoin, and subsequently freed.

// EVENTS

Dubai International Blockchain Summit - Dubai, United Arab Emirates - January 8, 2018