Proposal description
Overview
The gateway integration will:
(If you are not familiar with the Ripple network, e.g. are not sure what exactly a Ripple gateway is, we encourage you to read the introduction to Ripple near the end of the proposal text.)
Pre-proposal can be found here
Scope and Deliverables
DASH will be added to the Ripple network via integration into GateHub Fifth, one of the most prominent Ripple gateways that currently provides BTC, ETH, ETC, and REP issuance on the Ripple network.
What we will deliver:
Existing GateHub trading interface:
Execution and Schedule
Dash implementation into GateHub platform will consist of three phases:
The work will be covered by a team of 2-3 people. The total expense consists of compensation for the team. Other costs are negligible.
Development can start within 1 weeks of the day when the Proposal is funded. Total estimated development time is one month.
About GateHub
GateHub Limited is a UK-based FinTech company. We are backed by Ripple Inc., Chris Larsen (founder of Ripple), Nejc KodriÄ (founder and CEO of Bitstamp) and Greg Kidd (founder of Global iD).
Established in 2014, GateHub started as a Ripple Wallet provider, and a EUR and USD Ripple gateway. The wallet service gained significant user base in early 2016 when it became the main wallet provider endorsed by Ripple. Also in 2016, it introduced its first affiliate gateway GateHub Fifth.
Why we are asking for funding
GateHub Fifth will collect a 0.3% fee for DASH trading (after the initial 0% fee period). While we project the future revenue from fees to cover operating expenses (maintenance, support, marketing), we seek additional funding to cover the initial costs of integration.
Part of the received DASH funding will also be used directly for initial liquidity (market making) on the newly established DASH markets on Ripple.
About the Ripple Network
The Ripple Consensus Ledger (RCL) is an open decentralised cryptocurrency network with support for arbitrary currencies (via 3rd party gateways/counterparties/issuers), with deeply integrated currency trading and exchange.
About Ripple Currencies and Gateways
As Ripple is an open network, anyone can become a gateway (issuer) for any currency on RCL; no permission whatsoever is needed. Gateways must, exactly like traditional exchanges, establish trust to gain users. Each user can freely choose which gateways they trust and use.
Current major gateways include GateHub (USD and EUR) with its subsidiary GateHub Fifth (BTC, ETH, ETC, REP), Bitstamp (USD and BTC), Ripple Fox (CNY), Mr. Ripple (JPY, BTC, ETH), and others. Less prominent currencies featured by other gateways include LTC, XAU, BRL, KRW and others.
Ripple also features its native currency XRP that is used to pay for network fees and required as a reserve on any account that holds state in the Ripple ledger (eg. open trust lines to gateways, limit orders, etc.).
Comparison of Ripple Gateways to Traditional Exchanges
Ripple gateways are like traditional exchanges in the sense that users deposit “real†currency with the gateway, while the gateway securely stores the deposits and credits the user with a balance (IOUs) on the user’s account that can then be traded with other users.
Ripple gateways differ from traditional exchanges in a number of ways:
Most of the points above reduce the trust required from the users to use the gateway, compared to using a traditional exchange.
Amount requested
150 DASH, one-time payment.
The gateway integration will:
- Enable DASH trading on the Ripple decentralised ledger against all existing and future currencies on the Ripple network.
- Expose existing Ripple users to DASH.
(If you are not familiar with the Ripple network, e.g. are not sure what exactly a Ripple gateway is, we encourage you to read the introduction to Ripple near the end of the proposal text.)
Pre-proposal can be found here
Scope and Deliverables
DASH will be added to the Ripple network via integration into GateHub Fifth, one of the most prominent Ripple gateways that currently provides BTC, ETH, ETC, and REP issuance on the Ripple network.
What we will deliver:
- Automated DASH deposits and withdrawals to and from the Ripple network via the GateHub Fifth gateway.
- DASH trading against all currencies already issued on the Ripple network by any gateway: USD, EUR, CNY, JPY, BTC, ETH, XRP, ETC, REP, XAU, BRL, etc., plus currencies issued on RCL in the future.
- We will provide market liquidity (via market making) against XRP, BTC, ETH. Market liquidity against other currencies (USD, EUR, CNY, BRL, GBP, etc.) will follow by extension via Ripple’s integrated auto-bridging of order books.
- Direct exposure of DASH to the existing 100,000 GateHub users.
- Exposure to all Ripple network users.
- 0% promotional Ripple trading/transfer fee for a period of one month from launch.
- Basic social marketing:
- A dedicated self-hosted blog post,
- One e-mail announcement to existing GateHub Fifth users,
- Posts, links, and responses to questions on forums and other relevant social media.
Existing GateHub trading interface:
Execution and Schedule
Dash implementation into GateHub platform will consist of three phases:
- Development (2 weeks)
- Testing (2 weeks)
- Deployment (1 week)
The work will be covered by a team of 2-3 people. The total expense consists of compensation for the team. Other costs are negligible.
Development can start within 1 weeks of the day when the Proposal is funded. Total estimated development time is one month.
About GateHub
GateHub Limited is a UK-based FinTech company. We are backed by Ripple Inc., Chris Larsen (founder of Ripple), Nejc KodriÄ (founder and CEO of Bitstamp) and Greg Kidd (founder of Global iD).
Established in 2014, GateHub started as a Ripple Wallet provider, and a EUR and USD Ripple gateway. The wallet service gained significant user base in early 2016 when it became the main wallet provider endorsed by Ripple. Also in 2016, it introduced its first affiliate gateway GateHub Fifth.
Why we are asking for funding
GateHub Fifth will collect a 0.3% fee for DASH trading (after the initial 0% fee period). While we project the future revenue from fees to cover operating expenses (maintenance, support, marketing), we seek additional funding to cover the initial costs of integration.
Part of the received DASH funding will also be used directly for initial liquidity (market making) on the newly established DASH markets on Ripple.
About the Ripple Network
The Ripple Consensus Ledger (RCL) is an open decentralised cryptocurrency network with support for arbitrary currencies (via 3rd party gateways/counterparties/issuers), with deeply integrated currency trading and exchange.
About Ripple Currencies and Gateways
As Ripple is an open network, anyone can become a gateway (issuer) for any currency on RCL; no permission whatsoever is needed. Gateways must, exactly like traditional exchanges, establish trust to gain users. Each user can freely choose which gateways they trust and use.
Current major gateways include GateHub (USD and EUR) with its subsidiary GateHub Fifth (BTC, ETH, ETC, REP), Bitstamp (USD and BTC), Ripple Fox (CNY), Mr. Ripple (JPY, BTC, ETH), and others. Less prominent currencies featured by other gateways include LTC, XAU, BRL, KRW and others.
Ripple also features its native currency XRP that is used to pay for network fees and required as a reserve on any account that holds state in the Ripple ledger (eg. open trust lines to gateways, limit orders, etc.).
Comparison of Ripple Gateways to Traditional Exchanges
Ripple gateways are like traditional exchanges in the sense that users deposit “real†currency with the gateway, while the gateway securely stores the deposits and credits the user with a balance (IOUs) on the user’s account that can then be traded with other users.
Ripple gateways differ from traditional exchanges in a number of ways:
- User owns their own account: User holds their own Ripple secret key; the gateways have no control over users’ funds when they are issued on RLC.
- Users’ balances are held on the open Ripple ledger (as opposed to internal exchanges’ databases).
- All trading happens on the open Ripple ledger (as opposed to internal exchanges’ databases).
- RCL features transfers between accounts (like any cryptocurrency ledger), while most traditional exchanges don’t support transfers of funds between users. Transfers include automatic and atomic currency conversion between any currencies by way of exchanging on the integrated market.
- Users only need the gateway for deposits and withdrawals; trading and transfers are always possible by directly accessing the RCL (even in case any or all gateways involved are down). Ripple features 100.00% uptime since its inception in 2013.
- Any currency on RCL is always tradable against every other currency on RCL. This requires no action on the part of the involved gateways.
Most of the points above reduce the trust required from the users to use the gateway, compared to using a traditional exchange.
Amount requested
150 DASH, one-time payment.
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Discussion: Should we fund this proposal?
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1. It adds substantial tools/capabilities to trade back and forth easily and painlessly between various currencies. That's what Ripple does. It's like the Babel fish if you're a Hitchhiker's Guide to the Galaxy fan. Or, it's like Star Treks Universal Translator.
2. The cost is very reasonable to get this done considering the man hours it will take.
3. These are the people who know Ripple frontwards and backwards, and the logical choice for who to get this done in a timely and effective manor.
4. Ripple is going places. A strategic partnership between Ripple and Dash will accomplish far more together than separately.
https://ripple.com/insights/forty-seven-japanese-banks-move-towards-commercial-phase-using-ripple/
http://www.the-blockchain.com/2017/04/28/ten-banks-join-ripples-global-payments-network/
5. Some are concerned that we are paying money to a for-profit company. If it's profitable, they should just pay for it themselves. While I understand this point of view, and this point of view is not wrong, I view it very differently. You know how cool it is to buy premium tickets to get front row seats, and then you ALSO get passes to go backstage and meet the rock stars?
That's what we're paying for, premium express service. We, as a community, need to get used to the idea that we are rich. There's nothing wrong with being rich. Get used to it. Act like it. Embrace it. Raise your hand if you want to go to the front of line, instead of the back of the line!
6. Some are concerned that the end product is not an open source software product, and there is another proposal that does the "same thing" by a community member and results in an open source software deliverable. Evan even said so.
Yes, this is true. And yet, begging to differ with Evan. These two proposals do not do the same thing. These are complementary projects, and even the other open source proposal owner Akhavr wants both to happen.
This project will result in a functional gateway with support. Akhavr's project will result in software that anybody can use to open a gateway, but how many people will actually do that? And provide support? I don't know. How many Linux users are there? How many Microsoft users are there? Isn't it great that WE COULD HAVE BOTH!
What expands the Dash universe the fastest? Do both.
"Note that I'm voting "yes" for this proposal. The Dash integration on GateHub would bring users and volume. Open source gateway (my proposal) would bring diversity. We need all three." akhavr
And keep us updated on the Dash.org forum and/or the slack channel.
The value here is in exposure to the 100,000 GateHub users.
This is the type of online advertising that Dash needs.
(Airshows and circuses will lead to near 100% loss whereas online crypto sponsorships like this will produce positive ROI with ease.)
http://www.cnbc.com/2017/03/01/japanese-banks-plan-to-adopt-blockchain-for-payments.html
Second, for those who are voting yes to the other open source proposal (which I agree with), who is going to actually do the work and set up and operate the new Dash/Ripple Gateways? If we cannot answer that question, then the existence of the new software doesn't really accomplish anything to build out the Dash ecosystem.
This proposal goes all the way and actually produces a functional gateway. That's the key difference.
I would advocate doing both.
The folks behind this proposal have lots of experience in doing this exact thing (adding a new coin to the Ripple network.) I have high confidence the goal will be accomplished. The price is not at all unreasonable for 2 professionals working for at least a month. If paying a little up front moves us to the front of the line, I'm all in favor of it.
The open source project supports people that are already in the Dash community and have experience with Ripple. Open source projects carry a very different risk/reward ratio. Evan recognizes this and likes the open source project.
DO BOTH. Both is faster. They are different and complementary paths to growing the Dash ecosystem. Asking them to work together is like asking Ford and Chevy to work together to make CheFords. This would not improve the car market for consumers. We need Ford and Chevy to work independently and encourage/force competition to improve both products.
What is this one please, Open Source / Non Open Source?
Please note that the this proposal will *also* deliver everything that the article quotes as the open source project's deliverables, plus gateway operation (no separate proposal needed), and more (perhaps most notably, an existing large user base and support for trading/payments in the Ripple-endorsed GateHub wallet).
https://medium.com/@eduffield/ripple-gateware-fcc377db8e04
It is our opinion an open source implementation, while definitely beneficial, will not, on its own, attract many users, thus limiting the benefit to the DASH community.
Please note that the open source proposal itself in the very first sentence considers itself "a complementary proposal" to this one.
Please note though that setting up a successful Ripple gateway entails very similar effort as setting up a proprietary cryptocurrency exchange: the main hurdle is attracting volume and trust from users. It’s *not* simply about developing the technology. If you check out the data at https://charts.ripple.com/ you’ll notice many gateways that obviously have all the technology, but negligible volume. GateHub has already gained trust from many users as we have about 100.000 users currently.
While this argument is valid, please keep in mind that if the goal is create a useful DASH service that has a meaningful user base, having it backed by a company also has its obvious merits.
In the early years of Bitcoin, I've seen several open-source Bitcoin exchange project started. I don't see any of them even running today. The GateHub proposal gives all the benefits of a proprietary exchange, plus the significant added benefit of users having full control of their keys for trading on the open ledger.
https://www.dash.org/forum/threads/pre-proposal-create-the-first-dash-gateway-on-ripple.14721/page-2#post-125366
As for the funding amount, it is set to cover the expenses of two people working for a month on the integration.
1)Who will use this Gateway ?
2) Why should users trust your centralized wallet ?
Why would pay for something like this ? Did you even ask this fee from a very niche market REP serves ?
I think we should work towards building our own RIPPLE gateway. At put the 0.3% per month into the masternode owners pockets,. and also put money aside in education people that Ripple is really no good for users that wish to become there own bank.
Please note though that setting up a successful Ripple gateway entails very similar effort as setting up a proprietary cryptocurrency exchange: the main hurdle is *attracting volume and trust from users*. It's *not* simply about developing the technology. If you check out the data at https://charts.ripple.com/ you'll notice many gateways that obviously have all the technology, but no volume. GateHub has already gained trust from many users as we have about 100.000 users currently.
@ggololicic - I don't mean to highjack your proposal thread, just wanted to make clear that (a) there's a ongoing project for this and (b) those proposals are complementary, not competing.
I encourage you to start a gateway on ripple, more gateways better the network in which we see the biggest value.
Not getting funded here will push DASH integration down the priority list, thereby postponing the decision whether to do it for months, and then it may never happen as there are always new things to do in crypto.
But you can just sent USD, or Euro from you ripple node, nor can even exchange your ripples to USD on your node.
you'll have to go to an exchange for that, which so cleverly is called an Gateway.
People can very easily misunderstand these differences, and I don't like it when people try to trick other people in this fashion
In other words ripple made banks unneeded, and the need for other crypto's unneeded.
I don't like your tricks ggololicic, I can only hope other MNO's will see true them as well !!!
This is in contrast with traditional exchanges where each pair has to be added individually; e.g. if Poloniex lists an new coin XYZ, this will not automatically enable trading on pairs XYZ/DASH, XYZ/FCT, etc., whereas on Ripple it does: against *all* currencies from *all* existing gateways.
We should not create a self for filling prophecy, for Ripple either.