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Mar 19 โ€ข 26 tweets โ€ข 28 min read
[1/๐Ÿงต] "#ISO20022 is bigger than you think"

You've probably heard that term a few times and wondered what it meant. ๐Ÿค”

In case you are curious now:

A brief explanation of everything important.
There will be nothing complicated ahead, so don't worry. ๐Ÿงต๐Ÿ‘‡ Source:
[2/24] โ€” Outline โ€”

๐Ÿ”น Origin & Timeline
๐Ÿ”น What's the big deal?
๐Ÿ”น Details regarding the transformation
๐Ÿ”น Migration Approaches
๐Ÿ”น Relations to #Crypto (#DTI)
๐Ÿ”น @Ripple & #JSON formats Source:
[3/24] โ€” Origin & Timeline โ€”

The #ISO 20022 standardization efforts began very early on. Indeed, you may be wondering how you missed it until this date. ๐Ÿ˜… Source:
[4/24] โ€” 1โƒฃ What's the big deal? โ€”

#ISO20022, the successor to #ISO15022, which is the successor to #ISO7775, has a single goal:

โ˜‘๏ธ Facilitate communication interoperability across financial institutions, market infrastructures, and end-user groups.
. . . Source:
[5/24] โ€” 2โƒฃ What's the big deal? โ€”
. . .
โ˜‘๏ธ The potential solution w/ #ISO20022 is to create a uniform standardization method that all financial standards organizations would follow.

๐Ÿค” As an illustration, consider the unification of all languages into a single standard: English Source:
[6/24] โ€” 3โƒฃ What's the big deal? โ€” Source:
[7/24] โ€” 1โƒฃ Details regarding the transformation โ€”

What will change โ“

๐Ÿ”น @ecb #TARGET2 & #TARGET2-Securities Consolidation

๐Ÿ”ธ Replaced by #T2, a new real-time gross settlement (#RTGS) technology that improves liquidity management. Source:
[8/24] โ€” 2โƒฃ Details regarding the transformation โ€”

What will change โ“

๐Ÿ”น #TARGET Services - Shared features

๐Ÿ”ธ Central #liquidity management
(single liquidity pool)
๐Ÿ”ธ One message standard ISO 20022
๐Ÿ”ธ Joint pricing guide
๐Ÿ”ธ Multi-vendor connectivityโ€ฆ
[9/24] โ€” 3โƒฃ Details regarding the transformation โ€”

What will change โ“

๐Ÿ”น New accounts with #TARGET

๐Ÿ”ธ Main #Cash Account (#MCA)
๐Ÿ”ธ Dedicated Cash Accounts (#DCA)

"The #ECB addresses the growing need for an effective facility for the supply of liquidity to present [...]
. . . Source:
[10/24] โ€” 4โƒฃ Details regarding the transformation โ€”
. . .

[...] and future #Eurosystem #payment and #settlement services by separating the account structure in an #MCA and #DCA arrangement.

It facilitates the usage of a single data layer and service harmonization." Source:
[11/24] โ€” 5โƒฃ Details regarding the transformation โ€”

What will change โ“

๐Ÿ”น Payment message formats defined by #ISO20022

๐Ÿ”ธ The formats differ and must be translated or received in #MX directly. Source:
[12/24] โ€” 6โƒฃ Details regarding the transformation โ€”

What will change โ“

๐Ÿ”น The transition to #ISO20022-defined messages

๐Ÿ”ธ #EURO1
๐Ÿ”ธ Canada's #HVPS #Lynx
๐Ÿ”ธ Australia's #HVCS #AusPayNet
๐Ÿ”ธ New Zealand's HVCS #NZClear Source:
[13/24] โ€” 1โƒฃ Migration Approaches โ€”

๐Ÿ”น Ad-hoc Translation

๐Ÿ“ Converts incoming #MX messages to corresponding old #MT forms, as well as outgoing MT messages to equivalent MX formats, and enables needed #reporting and confirmation messages. Source:
[14/24] โ€” 2โƒฃ Migration Approaches โ€”

๐Ÿ”น Native Implementation

๐Ÿ“ Accepts the entire breadth of #ISO 20022. Source:
[15/24] โ€” 3โƒฃ Migration Approaches โ€”

๐Ÿ”น Hybrid Approach

๐Ÿ“ Achieves smoother #CBPR+ adoption by allowing financial institutions to migrate a subset of CBPR+ messages using an ad-hoc #translator and other messages using native CBPR+/#ISO 20022 implementation. Source:
[16/24] โ€” 4โƒฃ Migration Approaches โ€”

๐Ÿ”น Centralized Payments Hub Orchestrator

๐Ÿ“ Operates as a #bridge between the financial institution's back-end systems and the #SWIFT network, and supports all other techniques as well as new additional functionalities Source:
[17/24] โ€” 5โƒฃ Migration Approaches โ€”

๐Ÿ”น Multi-Tenant Enterprise Hub

๐Ÿ“ Serves as a common #platform for #financial institutions, subsidiaries, branches, and offices across many areas, capable of handling local #market #infrastructure norms and #regulations. Source:
[18/24] โ€” 1โƒฃ Relations to #Crypto (#DTI) โ€”

Because the entire purpose of this standard is to provide an uniform communications framework, there are no #ISO20022-compliant #cryptocurrencies.

The purpose of #crypto is to settle and transfer value and assets. ๐Ÿ™‚ @krippenreiter
[19/24] โ€” 2โƒฃ Relations to #Crypto (#DTI) โ€”

The closest thing we have to anything that might be utilized in conjunction with #ISO20022's rich data fields is the ISO/AWI 24165-1 Digital token identifier standard.

๐Ÿ”น Registration
๐Ÿ”น Assignment
๐Ÿ”น Structureโ€ฆ
[20/24] โ€” 3โƒฃ Relations to #Crypto (#DTI) โ€”

The Digital Token Identifier Foundation (#DTIF) was formed as one of #etradingsoftware's solutions in this regard.

โ„น๏ธ The assignment is as follows: Source:
[21/24] โ€” 1โƒฃ #Ripple & #JSON formats โ€”

One option to #ISO 20022 messages with #XML syntax is the ability for an #API to also respond in a format with #JSON syntax.

This enables financial institutions to be flexible and #interoperable.

๐Ÿ”—โ€ฆ Source:
[22/24] โ€” 2โƒฃ #Ripple & #JSON formats โ€”

When it comes to #RippleNet, they do just that.

The Standard #RippleNet #Payment Object (#SRPO) provides a set of fields in the #JSON Schema while still adhering to #ISO20022.โ€ฆ
[23/24] โ€” Summary โ€”

The #ISO-20022 transformation is a huge undertaking.

#IT #admins will most likely spend the whole weekend inside a #datacenter upgrading infrastructure.

Because there will be no rollback, it is going to be challenging for the #IT department. Source:
[24/24] Thank you to everyone who read my ISO20022 ๐Ÿงต and dug further into the complex aspects of the massive transformation! 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 @XRPcryptowolf @X__Anderson @stedas @XRPNews_ ๐Ÿ‘‹
โ€” My most recent article [๐Ÿงต] tackles all there is to know about the major transition approaching this weekend and everything about #ISO 20022 in great depth โ€”

โ€ข โ€ข โ€ข

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More from @krippenreiter

Mar 15
[1/๐Ÿงต] I believe @bob_way has already gone way overboard with #ILP and all the complexities of explaining all that needs to be expressed. โค๏ธ

Still, let me make a few remarks on the following topics ๐Ÿ‘‡
โ€ข Infrastructure layers of #ILP
โ€ข #XRPL Payment Channels
โ€ข "Ledger Graphs"
[2/17] โ€” Infrastructure Layers of #Interledger โ€”

When it comes to the most recent version of the open #ILPv4 suite in universal mode (high volume, low value payments), the layering is as follows:

1โƒฃ Application
2โƒฃ Transport
3โƒฃ Interledger (Core Layer)
4โƒฃ Link
5โƒฃ Ledger
[3/17] โ€” 1โƒฃ Application Layer โ€”

This is the suite's first layer, and it contains the following protocol:
โžก๏ธ #SPSP (Simple Payment Setup Protocol)

๐Ÿ“ This is for #identifiers, which are comparable to email addresses and are used to make addresses readable.
Read 18 tweets
Mar 10
I wanted to thank @bob_way once more for this 4 hour Twitter space marathon.

Today I realized that I am still in the early stages of learning about #ILP and the #XRPL.

In case you missed it today, here are all the sources we discussed: ๐Ÿงต๐Ÿ‘‡
1โƒฃ โ€” #Rippling and the "#NoRipple Flag"
2โƒฃ โ€” Local Exchange Trading Systems (#LETS)โ€ฆ
Read 11 tweets
Mar 5
[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
Read 21 tweets
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

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