Ripple and Stablecoins , livre ebook

Ripple and Stablecoins: Building Banks of Tomorrow
Use Cases on International Remittance, Capital and Money Markets, Swaps, Micropayments, Trade Finance, Islamic Finance, and Stablecoins
by
Debajani Mohanty
FIRST EDITION 2019
Copyright © BPB Publications, India
ISBN: 978-93-89423-198
All Rights Reserved. No part of this publication may be reproduced or distributed in any form or by any means or stored in a database or retrieval system, without the prior written permission of the publisher with the exception to the program listings which may be entered, stored and executed in a computer system, but they can not be reproduced by the means of publication.
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About the Author
Debajani Mohanty is a Solution Architect who has been involved in large-scale projects and has built many scalable enterprises for B2B and B2C products, right from conceptualization to marketing, in varied domains such as travel, e-governance, e-commerce, and BFSI. Writing complex technical articles in an easy-to-understand language and with high readability is her forte that has earned her close to fifteen thousand followers on social media.
Debajani has authored the bestseller Blockchain from Concept to Execution by BPB publications, one of the few books in the IT industry that has been translated to other international languages such as German and Chinese. She has also written Ethereum for Architects and Developers and R3 Corda for Architects and Developers , published by Apress and Springer Nature, which have been well received by the industry.
Debajani is a global Blockchain pioneer and leader who has architected many unique products that are in the pilot and production phase in India as well as the international market. Also, she has been awarded and appreciated by business leaders globally. She has been a keynote speaker at PACT Forum (Philadelphia, USA), NASSCOM, UNICOM, Amity, and many other prestigious events.
Debajani is a women’s rights activist and was felicitated by Nobel Peace prize winner Mr. Kailash Satyarthi with the prestigious Aarya Award for her outstanding contributions to women empowerment in the field of literature.
Follow her on Twitter: https://twitter.com/debimr75
Follow her on LinkedIn: https://www.linkedin.com/in/debajanimohantypmp/
Reviewer
Hugh Macmillen has over twenty-five years of trading experience in the interest rate markets in Europe. Over the past three years he has been experimenting with alternative interbank payment systems such as XRP with the aim to reduce costs and enable intraday transactions in the unsecured money market.
Hugh Macmillen is the founder of Instimatch AG Baar in Switzerland, a ground-breaking, peer-to-peer liquidity network for institutional borrowers and lenders. Instimatch Global AG was nominated among the top 5 start-ups in 2019 by the prestigious FN London News Network in the UK, under the category of Fixed Income.
Instimatch was one of the first MVP DAPPs to be registered on the Ethereum project in 2015.
Currently, Instimatch is experimenting with R3 Corda and XRP Settler for intraday payments and cross-border interbank payments. Through the adoption of this technology, significant savings can be made for their clientele as expensive nostro accounts would no longer be required.
Acknowledgements
This book through and through is an ode to my mother Mrs. Nirupama Mohanty, who, despite an ongoing treatment of breast cancer, has stood by my side in my struggle to cope up with family, finish projects on time, and, at the same time, gather content for my manuscript. With her support through thick and thin of life, each of my books gets better and better, surpassing my own expectations and benefitting thousands of my readers who eagerly look forward to my upcoming work.
Preface
More than a decade ago, after staying in England for almost five years, I returned to my homeland, India. I had to take the help of the international remittance system of banks for transferring the fortune that I had earned staying abroad. The waiting period was long and painful, and after almost a week’s time, I had a sigh of relief as the local bank in India informed me that the transaction was through. However, the relief didn’t last long; what I ended up receiving in my Indian account made me shed buckets of tears. The fees and cost of remittance over the wire had cost me almost 8% of the entire amount, which was huge! That was when I made up my mind to work in this area, to help improve the flawed and dated system, so that my small contribution would help improve the global remittance and related trading systems some day in future. I am glad that the day has finally come.
As per a Finextra news report back in 2016, people across the world send more than $155 trillion across borders, and this number is on an exponential rise year after year.
https://www.finextra.com/newsarticle/29445/ripple-scores-55-million-funding-round-adds-new-bank-members
Also, according to a recent article published by the World Bank on April 8, 2019, India is the topmost receiver of remittances from across the world.
https://www.worldbank.org/en/news/press-release/2019/04/08/record-high-remittances-sent-globally-in-2018
Hence, being an Indian and a solution architect, as well as a writer, I felt it was my responsibility to bring awareness in this space so that next-generation payment technologies would be perceived and accepted in the market for mass adoption.
Post the remarkable success of my three books on Blockchain, I have been invited to many panel discussions to offer my view on how Blockchain as a technology can bring a new future to the existing business processes. I often advise that, it does not matter how smooth the business processes are, if the payment leg is not efficient, it would bring unnecessary delay in achieving the end results.
Interestingly though, many CXOs and business heads still do not have a full understanding of the limitations of the existing payment systems that jeopardize business processes in the industry and, at the same time, are unsure of the advantages cutting-edge technologies can offer by revising their age-old remittance systems. This book would be a good starter for them, not only to learn Ripple, but to envision the future of the payment industry and how that would help the entire business ecosystem to progress towards Bank 4.0 . Be it trade finance, e-Auction, micro-funding, money market, or Islamic finance, the use cases reviewed in this book will educate readers about how this emerging technology could benefit in rebuilding their business boundaries.
This book is written for all IT professionals. It starts with the loopholes in the existing banking and payment industry that have led to the invention of Bitcoin and Blockchain, followed by Ripple. The book focuses on Ripple’s architecture and development APIs with adequate examples. In later chapters, the book reviews different use cases that will greatly help business leaders, analysts, and developers alike.
This book has also given me the opportunity to learn the entire ecosystem of Ripple, thus helping me in advocating the benefits of Ripple adoption to my clients, and eventually helping us all gradually to move towards achieving a common dream — Bank 4.0 and beyond .
Errata
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Table of Content
1. Evolution of Payment Systems
Babylon to Bitcoin: History of Payments
Evolution of banks
Pain points of modern banking system
Credibility of banks before and after 2007 crisis
Pre-Blockchain instant money transfer solutions
Bitcoin: The end of money
What criteria did Bitcoin lack for cross-border remittance?
Blockchain technology
Advantages of Blockchain
What is Ripple?
XRP
Advantages of Ripple
Disadvantages of Ripple
Why are banks still hesitant to adopt Ripple?
Misconceptions and unknown facts of Ripple
FinTechs on XRP ecosystem
Summary
Questions
Answers
References
Some other great resources for reference are as follows:
2. Ripple Architecture
How does international remittance work?
Intrabank money transfer
Interbank money transfer
International money transfer
SWIFT
SWIFT pain points
Introduction of SWIFT global payment innovation (gpi)
Liquidity issue with nostro accounts
Ripple: The new-age payment system
XRP Ledger
Consensus in XRP Ledger
Rippled Server
XRP
Drops
Issued currenci