Krippenreiter Profile picture
Dec 26, 2022 β€’ 19 tweets β€’ 22 min read β€’ Read on X
[1/🧡] I've been reading a lot about #XRPL #scalability recently.

Let me quickly go through how #XRPL performs and #scales on these metrics:

▢️ Scale up "vertically"
▢️ Scale out "horizontally"
▢️ High volume & High value TX
▢️ High value & Low speed Source: https://ripple.com/insights/building-a-more-sustaina
[2/17] πŸ‘‰ Asynchronous TX speedβ€”Scale up "vertically"

In contrast to #DAG-based systems, which operate in "chaotic order" and execute transactions in parallel, the #XRPL validates transactions in canonical transaction orderβ€”one Ledger at a time.

πŸ”— bitcoin.stackexchange.com/questions/7857…
. . .
[3/17] . . .

❓ The approach for #DLT/#Blockchain-based systems such as #XRPL:
β˜‘οΈ "Payment Channels"

🧐 It's a sophisticated feature for transmitting "asynchronous" #XRP #payments that may be broken into extremely small amounts and paid in total order afterwards.
. . . Source: https://ripple.com/insights/amendments-ensuring-sens
[4/17] . . .

Because it's #Christmas, consider the following #analogy: πŸŽ…πŸŽ„

1⃣ Without "#PaymentChannels":
Alice sends a package (Ledger) to @bob_way every ~3 seconds, each containing a few toys (#transactions)
. . . Source: https://www.istockphoto.com/photos/christmas-package
[5/17] . . .

2⃣ With "#PaymentChannels":
Alice is continually wrapping up new toys (#TX) and NOT delivering them over to @bob_way (async. authorized claim with a single validated #TX), while also reminding him:

"They are yours whenever you want them πŸ˜‰" (redeem a claim)
. . . Source: https://unsplash.com/s/photos/christmas-gift
[6/17] . . .

🀨 What are the constraints of the solution?

#PaymentChannels enable #transactions to be carried out at a rate that is only limited by the participants' capacity to produce and validate #digital #signatures for those Claims.
. . . Source: https://blog.signaturit.com/en/what-is-a-digital-sig
[7/17] . . .

This restriction is mostly determined by the speed of the participants' #hardware and the complexity of the #signature #algorithms.
. . . Source: https://www.unixtutorial.org/generating-ed25519-ssh-
[8/17] . . .

In 2011, research proved the capacity to produce over #Ed25519 100,000 #signatures per second and verify over 70,000 per second on commodity #hardware.

πŸ”— ed25519.cr.yp.to/ed25519-201109…
. . . Source: https://ed25519.cr.yp.to/ed25519-20110926.pdf
[9/17] . . .

The most recent numbers are always available here:
πŸ”— bench.cr.yp.to/results-sign.h…

The most recent paper I could find was as follows:
πŸ”— eprint.iacr.org/2021/471.pdf

Numbers interpretation (4 years ago):
πŸ”— crypto.stackexchange.com/questions/6025…
[10/17] πŸ‘‰ Scale out "horizontally"

We defined how to #scale up "vertically" by increasing capacity by adding more resources (#CPU, #storage), for example:

πŸ”„ Improved/optimized CPUs / Servers ▢️ More signatures ▢️ Larger Payment Channels ▢️ Faster #XRPLedger
. . . Source: https://www.startpage.com/av/proxy-image?piurl=https
[11/17] . . .

The next step is to learn about the #technical characteristics that the #XRPL can provide in order to #scale horizontally.

➑️ Add #servers to a #cluster that operate as a logical unit to improve capacity.

In #XRPL jargon:
▢️ "Federated #Sidechains"
. . . Source: https://xrpl.org/federated-sidechains.html
[12/17] . . .

If adding #servers isn't enough to #scale out enough to handle all of the #transactions on the #XRPL itself, there's always the possibility of spinning up a new #sidechain with purpose-fit rules if the #mainchain becomes overloaded.

πŸ”— ripple.com/insights/a-vis…
[13/17] πŸ‘‰ High volume & High value TX

❓ We've prev. addressed how the #XRPL will manage large volume load, but how will it handle liquidity issues for high value #TX when the trading-pair is not liquid enough?

The solution proposed for this specific problem:
▢️ #AMM
. . . Source: https://github.com/XRPLF/XRPL-Standards/discussions/
[14/17] . . .

The [A]utomated[M]arket[M]aker (#XLS30d) liquidity pools enable #liquidity provisioning without the need of smart-contracts, further enhancing the #CLOB-based #XRPL #DEX.

πŸ”— dev.to/ripplexdev/xrp…
[15/17] πŸ‘‰ High value & Low speed

For high-value #XRP TX where speed is unimportant, one may utilize #escrows, which are well-known owing to @Ripple's significant usage of them.

The following conditions apply:
β€’ Time-based
β€’ "crypto-conditions"

πŸ”— datatracker.ietf.org/doc/html/draft…
[16/17] β˜‘οΈ As you can see, there are numerous methods to scale up and out, including adding #servers, boosting #CPU power, adding #sidechains, or leveraging #XRPL features such as #escrows and #payment-channels to meet transaction demand without overburdening the #XRPLedger. Source: https://res.cloudinary.com/practicaldev/image/fetch/
[17/17] Thank you to everyone who took the time to read this lengthy topic ❀️

If you enjoyed the thread, please follow me:
@krippenreiter

Please feel free to contribute by sharing here πŸ‘‡
@WKahneman @digitalassetbuy @Fame21Moore @sentosumosaba @BCBacker @XRPcryptowolf @X__Anderson @stedas πŸ‘‹
β€” My most recent article [🧡] explores #XRPL's scalability options and approaches to meet global demand if necessary by growing horizontally and vertically with ease.

β€’ β€’ β€’

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More from @krippenreiter

Sep 16
[1/🧡] Crashcourse XRP Ledger Permissioned DEX!

With the introduction of credentials, permissioned domains and permissioned DEXs the XRPL will evolve into a completely new type of beast!

No tech depth ahead, just the basics. πŸ‘‡ Source: @krippenreiter
[2/21] β€” The Identity Tech Stack β€”

For pDEXs to exist and work as intended, three different features need to be active on the XRP Ledger:

πŸ”Έ (optional) DID βœ…
πŸ”Έ Credentials βœ…
πŸ”Έ Permissioned Domains ⏸️
πŸ”Έ Permissioned DEX ⏸️ Source: @krippenreiter
[3/21] β€” 1⃣ TL;DR β€”

The TL;DR is that pDomains are restricted environments on the XRPL that let users with permission use certain functions within the domain, like a DEX, in case the user owns the correct credentials. 🧐

Too much jargon, I know. πŸ˜… Source: https://xrpl.org/docs/concepts/tokens/decentralized-exchange/permissioned-dexes#key-roles-in-a-permissioned-dex
Read 22 tweets
Sep 12
[1/🧡] The bullrun seems to be just around the corner, and everyone is teasing us with yield and XRPFi protocols. 🧐

Regardless of whether you decide to hold or sell...

Let's take a look at "Lending" and check if it's worth it. πŸ‘‡ Source: https://finematics.com/lending-and-borrowing-in-defi-explained/
[2/14] β€” 1⃣ Money Markets β€”

Before we do just that, let's quickly clarify a specific word first.

Behind the terms "Lending" and "Borrowing" actually hides another term that you will see from time to time:

πŸ”Έ Money Markets Source: https://chain.link/education-hub/decentralized-money-markets
[3/14] β€” 2⃣ Money Markets β€”

Besides AMMs, lending is currently the most important pillar for on-chain DeFi, as it removes the middleman in the pooling, management, and lending of funds.

The goal? 🀨

Positive yield or in other words, interest on the liquidity you provide. Source: https://www.investopedia.com/terms/i/interest.asp
Read 15 tweets
Sep 8
[1/🧡] A MASSIVE attack on the JavaScript ecosystem is currently underway. ☹️

Since JavaScript is at the heart of what we use every day to browse the internet, you MUST be extra vigilant.

Let's take a look at a possible solution for the XRP ecosystem. πŸ‘‡πŸ§΅ Source: https://xrplfirewall.com
[2/13] β€” 1⃣ First things first β€”

Although the entire JavaScript ecosystem is at risk, the malware appears to be targeting only a few blockchain ecosystems, based on the addresses it uses to steal funds:

‼️ At risk πŸ‘‡ Source: https://jdstaerk.substack.com/p/we-just-found-malicious-code-in-the
[3/13] β€” 2⃣ First things first β€”

The reason this is such a big deal is because of the sheer volume of weekly downloads of the maliciously patched packages. Source: https://jdstaerk.substack.com/p/we-just-found-malicious-code-in-the
Read 14 tweets
Jul 26
[1/🧡] You've probably heard about new yield opportunities with XRP that promise a return of around 20% APY. 🧐

How much truth is there to this, and what happens if you actually connect to @moremarketsxyz and deposit funds? πŸ‘‡
[2/14] β€” 1⃣ First things first β€”

πŸ‘‰ I want you to repeat after me:

"I will not deposit all my XRP into completely new DeFi protocols right after their launch, no matter the yield" Source: @krippenreiter
[3/14] β€” 2⃣ First things first β€”

When you join any DeFi protocol, start with very small amounts (e.g., 1 XRP) to get a feel for how things work, and try to regularly withdraw everything to test whether you can realize your profits with the protocol or not. πŸ‘ Source: https://app.moremarkets.xyz
Read 15 tweets
Jul 7
[1/🧡] What's still upcoming and in the pipeline for the XRP Ledger? 🧐

My attempt to summarize what the brilliant @aanchalmalhotre "casually" laid out in a 25-minute talk at XRPL Apex this year. πŸ‘‡ Source: https://www.youtube.com/watch?v=UzbHAbBtLXQ
[2/15] β€” 1⃣ Key-Challenges β€”

Privacy and compliance are at odds with each other, and balance is key.

A lot of what the TradFi world is used to and expects still doesn't exist or is purposefully different in blockchains, like transparent transactions or low confidentiality. Source: https://www.youtube.com/watch?v=UzbHAbBtLXQ
[3/15] β€” 2⃣ Key-Challenges β€”

Institutions also expect their on-chain operations, aka transactions, to be highly customizable and controllable because of factors like internal risk management.

πŸ‘‰ They expect the XRPL to be programmable for their dedicated policies. Source: https://www.youtube.com/watch?v=UzbHAbBtLXQ
Read 16 tweets
Jun 30
[1/🧡] XRP Ledger βœ– Axelar βœ– XRPL EVM Sidechain βœ– Squid ‼️

With all these new integrations and partnerships, I bet you are pretty much overwhelmed by all the alien-like jargon. 🀨

A little vocabulary crash course ahead πŸ‘‡ Source: https://axelarscan.io
[2/20] β€” 1⃣ Overview β€”

What just happened today is nothing less than the complete onboarding of the XRPL to the vast and entire web3 blockchain ecosystem (+ Bridging protocols and available liquidity).

πŸ‘‰ All via the XRPLEVM sidechain, Axelar and @squidrouter. Source: https://axelarscan.io
[3/20] β€” 2⃣ Overview β€”

What does this mean in practice? 🧐
πŸ”Έ New tokens on the XRPL DEX (bridged by @axelar)
πŸ”Έ Literal (and easy) any-to-any swaps (via Squid)
πŸ”Έ Liquidity from the entire web3 ecosystem (via CORAL)
πŸ”Έ Bridged XRP accessible on 80+ chains (through XRPLEVM) Source: @squidrouter
Read 21 tweets

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