Krippenreiter Profile picture
Mar 5 โ€ข 21 tweets โ€ข 24 min read
[1/๐Ÿงต] @DigiEuro interviewed @moderndosh and @AntonyWelfare on the @Ripple #CBDC-Manager software.

The underlying private #CBDC-ledger based on #XRPL was also heavily discussed.

I summarized the most of the interview for you, along with my personal comments. ๐Ÿงต๐Ÿ‘‡ Welcome to the Ripple Digital Currency Manager
[2/19] To begin, if you are completely unfamiliar with #CBDCs and the #Ripple solution, here is a nice place to start:
[3/19] One important reason for using a private version of the public #XRPL is that a central #bank needs to be able to control the #money supply.

Why use a private ledger โ“
โ–ถ๏ธ Central banks and #governments must be able to mint and destroy #currencies. CBDC Hierarchy of Needs
[4/19] The solution provided by @Ripple is a no-code Frontend for central and commercial #banks to manage #currencies.

The approach provided is always based on assumptions about how the #monetary future may appear, while being simple enough to replicate certain existing methods.
[5/19] Inside the #CBDC-Manager, multiple "personas" & accounts may be added based on the central banks' & monetary authorities' granted permissions, operational demands, & responsibilities

A few examples:
1โƒฃ Chief Cashier (Central Bank)
2โƒฃ Distribution Officer (Commercial Bank)
[6/19] โ€” 1โƒฃ Use of Several Accounts โ€”

1โƒฃ โ€” Issuing Account โ€”
โ€ข #Money issuance (creation of #credit) โ€” Publish a #currency onto the ledger
โ€ข The total amount of money accessible in all other accounts combined
โ€ข Ultimate source of truth ripple Account List
[7/19] โ€” 2โƒฃ Use of Several Accounts โ€”

2โƒฃ โ€” Operational Account โ€”
โ€ข One of numerous peripheral accounts used to better track the transfer of cash.

3โƒฃ โ€” Standby Account โ€”
โ€ข Money that has been printed and held in a safe vault before being disbursed to other selected accounts Payments
[8/19] โ€” Several Personas / Account Signers โ€”

1โƒฃ โ€” Chief Cashier โ€”
โ€ข Handling the issuing account's #funds
โ€ข #Mint / #Pay / Destroy

2โƒฃ โ€” Distribution Officer โ€”
โ€ข Transferring #payments to peripheral accounts such as #ATMs and outlets
โ€ข Decoupling is possible
โ€ข #Mint / #Pay Mint requests
[9/19] โ€” 1โƒฃ Security โ€”

Multi-#signatures are omnipresent, and various users (Authority profiles) are allocated weight when signing a TX.

If the quorum to actually submit a #TX onto the #CBDC-Ledger is 2/2, then two #signed approvals with a weight of 1 are required. Demo Standby Account
[10/19] โ€” 2โƒฃ Security โ€”

That is, according on their weight (approval authority) and permissions allowed, various users have varied powers to #mint and destroy the overall #supply.

For example, as a senior user, the deputy governor has approval authority of 2 instead of only 1. Mint Requests Approve
[11/19] โ€” 3โƒฃ Security โ€”

Signing for the issuance process can be delegated to various mechanisms that support the process of storing and #signing #TX.

A few examples for key management:
๐Ÿ”น #Keystore (local)
๐Ÿ”น #HSMs (physical devices)
๐Ÿ”น #MFA (2FA)
๐Ÿ”น #Custody providers
[12/19] โ€” 4โƒฃ Security โ€”

Institutional #Custodians and third-party providers, in particular, will play an important role in safeguarding the #PrivateKeys.
[13/19] โ€” 5โƒฃ Security โ€”

Because the platform as a whole is agnostic to how #keys are handled, it may be decoupled to better suit the needs of #financial institutions and central #banks.

I'm sure @StandardCustody / @PolySignInc can be readily incorporated to the procedure.
[14/19] โ€” #Audit Capability โ€”

Because of the underlying #CBDC private Ledger, the tool or application has been audited since its inception.

#Auditors may simply access and examine any relevant information. CBDC Ledger Explorer
[15/19] โ€” External #Wallets โ€”

External wallet accounts, such as @XummWallet, must go through a #KYC onboarding procedure before being immediately linked to the #CBDC-manager.

Sending #money to the app allows you to pay for retail items and services. Create New Payment Request
[16/19] โ€” Opportunities โ€”

โ˜€๏ธ Interoperability and bridge-building โ˜€๏ธ

#ConnectEverything and solving the #interoperability problem appear to be the most pressing issues.

What is crucial is that #settlement completion must be quick and #environmentally sustainable.
[17/19] To conclude, my most important question for @AntonyWelfare and @moderndosh is about #privacy and #security:

1โƒฃ โ€” Are you planning to include #ZKProofs into the #AML/#KYC procedure while maintaining digital autonomy in a #CBDC-based financial system โ“
[18/19] My second question:

2โƒฃ โ€” What is the ideal #security strategy for the #administrator account, given this account appears to have god-like authority over the #system and may possibly pose a severe threat if compromised โ“
[19/19] Thank you to everyone who read my ๐Ÿงต about #Ripple's #CBDC-Manager and delved deeper into the technical aspects!โค๏ธ

If you enjoyed the thread, please follow me:

Please feel free to contribute by sharing here ๐Ÿ‘‡
@WKahneman @digitalassetbuy @Fame21Moore @sentosumosaba @BCBacker @X__Anderson @stedas @Kevin_Cage_ @AlexCobb_ @IOV_OWL @XRPNews_ ๐Ÿ‘‹

โ€” My most recent ๐Ÿงต on #Ripple's #CBDC digital #currency software solution in significantly deeper depth โ€”

#XRPArmy #XRPcommunity #xrpthestandard

โ€ข โ€ข โ€ข

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More from @krippenreiter

Mar 5
[1/๐Ÿงต] Beautifully crafted thread. ๐Ÿ‘

Even though I mostly agree with everything expressed, there are some mistakes made based on terminology starting with the word "token".

A thread (๐Ÿงต) about my opinions, which are hopefully more uplifting. ๐Ÿ‘‡
[2/10] Let's start with a definition of "token" and see if we can locate a suitable statement in the #web.

What is a token โ“
โ A crypto token is a representation of an asset or interest that has been tokenized on an existing cryptocurrency's blockchain. โž Source:
[3/10] Even if the distinctions are small, claiming that #XRP is a token is strictly incorrect since #XRP cannot be a token.

Because #XRP has no issuer, it cannot exist as a tokenized representation of anything. XRP  XRP is the native cryptocurrency of the XRP Ledger. All
Read 11 tweets
Feb 25
[1/12] To understand what else is needed to create a financial future based on #blockchain technology, just consider what the #Interledger #Protocol was NOT designed to do. ๐Ÿ˜‰

[A #Thread ๐Ÿงต] Source:
[2/12] ๐Ÿค” What problem does #ILP genuinely address?

Just like the #internet will never agree on a single #protocol to fix everything, the world will never agree on a single #blockchain or ledger [#DLT].

What must be resolved is:
๐Ÿ”น Addressing
๐Ÿ”น Fragmentation The Interledger
[3/12] โ—๏ธ To make it easy and #ELI5-friendly here is everything in one picture:

When Alice wants to send money to @bob_way, #ILP will perform all the heavy lifting so she doesn't have to worry about #wallet addresses (#PubKeys) and the like. Source:
Read 14 tweets
Feb 11
[1/๐Ÿงต] A brief #thread on how to properly download and verify your newest #IOTA #Firefly Windows version. ๐Ÿ˜‰ Source:
[2/10] You might be wondering why @iota doesn't allow you to download & upgrade the version via the client.

To be honest, this would definitely improve usability (#UX), but it would also need the user to trust the DL content.

That is precisely what we do not want with #crypto. Source:
[3/10] Who knows whether the network path from #github to your PC wasn't intercepted and a man in the middle (#MITM) replaced your downloaded program with a slightly different one.

To ensure that the program you are installing is the one meant for you, verify the #hashes. ๐Ÿ‘€ Source:
Read 11 tweets
Jan 22
[1/๐Ÿงต] โ€” #XRPL (#XRP) vs. @Ripple #CBDC โ€”

A short thread comparing and contrasting the #opensource public #decentralized #XRPLedger with #Ripple's private #CBDC Ledger based on XRPL๐Ÿ‘‡ Source:
[2/6] โ–ถ๏ธ What do central bankers expect?

โœ… #Interoperability โ€” ILP
โŒ #Security, #Trust & #Speed โ€” Unregulated
โš ๏ธ #OverlayServices โ€” Hooks and @EvernodeXRPL
โœ… #Access and #Inclusion โ€” XRPL-DEX & AMM
โœ… #Stability & #Resilience โ€” 10+ years old (XRPL) Source:
[3/6] โ–ถ๏ธ Why does it have to be a private solution?

With proven security & all of the #XRPL Tooling at its disposal, the only thing a CB lacks is "control" of the gov. process.

Gov. on the #XRPL is conducted through amendments and voting, which cannot be controlled centrally. Source:
Read 8 tweets
Jan 15
[1/๐Ÿงต] With all of the #XRPBuyback debate going on, there is one aspect that frequently gets misrepresented

โ–ถ๏ธ People conflating the terms "#price" and "#value"

Because the definitions differ, it is essential to comprehend the distinctions

Let us evaluate it more closely. ๐Ÿ‘‡๐Ÿงต Source:
[2/19] To have a better understanding of the subject, we must first define several terms that are crucial to #finance and explain the following in further detail:

๐Ÿ”น "Price"
๐Ÿ”น "Cost"
๐Ÿ”น "Value"
๐Ÿ”น "Store of Value" (#Bitcoin/#BTC)
๐Ÿ”น "Internet of Value" (#Ripple) Source: Source:
[3/19] We will also go through the following scenarios to see whether what we think we are talking about is correct:

1โƒฃ The chart in reference to the #USD
2โƒฃ You are about to sell your #property Source:
Read 21 tweets
Jan 7
[1/๐Ÿงต] Is this you? ๐Ÿคจ

โ€ข Holder of #XRP since December 2020
โ€ข Has never heard of $FLR before (Hello, #Spark?)
โ€ข Has no idea what the fuss is all about
โ€ข Slept under a rock for two years

Allow me to bring you up to speed w/ this crash course on @FlareNetworks and $FLR. ๐Ÿงต๐Ÿ‘‡ Source:
[2/20] If you've been following this topic, you'll recall that there was once a #XRPL snapshot:

โ€ข 12th December 2020, 00:00 UTC
โ€ข #XRP Ledger index 60,155,580
. . . Source:
[3/20] . . .

You may recall that you had to claim your #Spark coins by providing your #EVM-based $FLR address in the message key field of your #XRPL account.

โ†’ claim period expired on #XRPLedger index 64,204,315
โ†’ Message could be changed until 11th June 2021, 23:59 UTC
. . . Source:
Read 22 tweets

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