Thread by @XRP_Anderson

1/15
Today I felt like I was red pilled...

I feel like we’re seeing a genius plan being unfolded in front of our eyes by Ripple...

I thought about Codius and how it could be used on top of XRP to compete with the platform coins.

2/15
I realized that the issue the platform coins will have relates to liquidity and scalability, to a large extent.

Now what did Ripple do?
They focused on XRP as a bridge asset, in the most liquid market, the FX market.

Now, this is my belief:

3/15
I believe there will only be one winner in the bridge asset race in the end. I’ve touched upon this many times.

The reason being; liquidity will go to the asset that is already most liquid automatically on assets with same tech

4/15
If one asset becomes ”the standard” (there’s a reason for #XRPTheStandard used as a tag) then that asset will have huge amounts of liquidity compared to any other asset in the space.

This is a very critical point. In my opinion, this will make sure that

5/15
no other asset will most likely never be as liquid as XRP or near as liquid. Other coins will not be able to enter the FX market.

XRP has been pushed as a bridge asset from the beginning by Ripple. Brad talks a lot about the peanutbutter manifesto. Do one thing REALLY well.

6/15
I completely agree.

Now, the genius with Ripple is that their push on being agnostic. Interledger Protocol, to connect all ledgers. Transfer all sorts of value by whichever asset you like.

Now, it’s clear they see XRP to be that asset on ILP.

7/15
Even if you can choose whatever asset, you will use the fastest and most liquid asset, XRP, being positioned for that job.

The agnostic nature of ILP makes everyone wanting to adopt it. The infrastructure for the new financial system. Brilliant.

Now to Codius..

8/15
Codius is agnostic as well. You can use it on XRP, BTC or whatever asset you like.

It is assumed that XRP will be the asset used if XRP is the fastest, most liquid.

Now, they focus on bridge asset dominance first. If they capture that market...

9/15
XRP will be super liquid and fast. Now you can put Codius on it and compete with the platform coins.

The genius with Ripple is that in order to have a platform coin they could make the smart contract capabilities separate, since they could then make XRP that it runs on...

10/15
super liquid by positioning itself as a bridge asset.

But the other platform coins don’t have any plan to become super liquid like XRP, which means they will most likely never be able to have close to the liquidity of XRP. Brilliant.

11/15
Now from a developers perspective, you can then build dapps on top of XRP, on FAR the most liquid coin, also fastest (or close to) with an infinite scalability. On programmer languages you already know.

If you have a good business idea, Ripple can fund you through xPring

12/15
That’s a good offer. I feel like it might be hard for the other platform coins to compete in the long run.

xPring is a brilliant way to expand the use cases for XRP because the incentives from the developers viewpoint is so large. To be gifted XRP.

13/15
I feel that Coil is such a perfect use case of XRP because I can see micropayments being a huge part of daily life.

The former CTO of Ripple left Ripple to start Coil, I’m sure they discussed micropayments as a huge thing in the future at Ripple.

14/15
I’m just seeing this huge ecosystem for XRP being built and I think a huge part of that strategy is to lock down all the liquidity as a bridge asset from the FX market.

Then being able to build Dapps on top of all that liquidity with Codius. Just Brilliant.

15/15
I just wonder how well other projects will be able to compete. It might in the long run become a huge dominance for XRP in the market.

They seem to be doing everything right.

Liquidity is hugely important so you lock that down first, then expand. 👌