Something I have been working on for some time now, & I wasn't expecting BIS's own paper to hand me the perfect worked example, & it addresses this very controversial aspect of recording official statistics in the memo field of the XRPledger for verification. BIS published a working paper this week on making official statistics independently verifiable on a public ledger hash the files, combine into a Merkle tree, anchor the root on XRPL. Solid numbers 3-5 second publication, 1-2 second verification. They anchored it via the memo field. "Vet" (XRP Ledger Foundation, dUNL validator) made the point better than I would have: a memo is transaction history, not ledger state, full nodes only carry it if they choose to keep history forever. An NFT is an object, it carries forward into every next ledger automatically. Put the hash in the NFT's URI instead and you get the same immutable, checkable anchor, minus the dependency on history retention. That's the exact pattern I've been building under the name NFU Network, with the genesis IP NFU minted as an immutable record of intellectual property on XRPL Mainnet; a Non Fungible Utility object as the root anchor, with a hierarchy, revocation, and dispute mechanism layered on top of it. So I built the smaller version to prove it out: mint a statement on XRPL testnet, bake a QR into its cover page at "upload time" pointing at the object, scan it, land on a page that checks the ledger live and shows you the statement. No memo anywhere in it. Testnet demo, POC, not a finished product, not affiliated with BIS — just public research worth responding to properly. Links below. BIS Paper bis.org/publications/working… · live demo bis-verify-demo.pages.dev/ve… statement minting demo bis-verify-demo.pages.dev/ bithomp test.bithomp.com/nft/0008000…
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This is the conversation the creator community needs to be having right now.
I wanted to weigh in on the closure of Foundation and what’s happening across NFT platforms. I used to think sending royalties to zero was the biggest rug pull in this space. Turns out giving platforms a percentage of every sale was bigger. Artists onboarded because we were promised perpetual royalties. We stayed because our sales lived on-chain, surfaced through platforms that gave our work web3 “credibility.” But that credibility was rented. Now platforms we paid millions to are shutting down. Others are raising fees. Auction histories are disappearing. And suddenly “provenance” depends on whether a company still exists to display it. All the data is on Ethereum. But the visibility, trust, and market access were not. Those were controlled by the platforms. We already knew “not your keys, not your wallet.” Now it’s clearer: not your gallery, not your legacy. Web3 was supposed to break the traditional gallery model. Instead, we rebuilt it on new rails and handed the power right back. In the traditional art world, galleries promote artists because their revenue depends on it. They have limited space, they have no other option. Curation comes with support, it has to. In web3, platforms scaled curation without this responsibility. They can essentially have unlimited amounts of art with no real obligation to help them succeed. That’s not a partnership. That’s extraction dressed as opportunity. But imo this isn’t the end of the story, it’s the beginning. If this space is actually different, then artists need to act like it. Not waiting for small-team ultra curated platforms to validate our work, but owning identity, provenance, and relationships directly. Most of us believe in what we’re doing here for the future generations of artists, it’s why we haven’t left, but If anything is going to change, it definitely WILL NOT come from platforms. It comes from us… 🖤
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1/4 This hit me hard when I read it. “Not your gallery, not your legacy.” The problem was always structural though. Royalties weren’t in the protocol — they were in the terms of service. OpenSea, Foundation — they could make them optional any time they liked because the fee was their policy, not the ledger’s. When the platform changes direction or closes, everything built on that policy goes with it.
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4/4 I’ve been quietly building on exactly this for the past couple of years. Protocol-enforced fees, IPFS permanence baked in at mint, a Passport file you download once and keep forever regardless of what any platform does. Genuinely curious — is this the direction others in this space are looking for, or am I solving the wrong problem? Would love to hear from people who’ve actually been through a platform closure.
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3/4 That “embedded on-chain but can’t be seen” problem is three separate failures dressed up as one. The token is on-chain. The image is usually pointing to a company’s server. The sale history lives in their database. Only one of those three things survives the platform closing. IPFS content addressing fixes the image. A downloadable NFT Passport — a single file that holds your provenance, your image, your ownership history — fixes the history. No platform needed to open it. Ever.
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2/4 Two things should always have been true from day one. The transfer fee written into the token at mint, enforced by the ledger itself on every single transfer — no marketplace toggle, no “make royalties optional” setting. The ledger collects it. Always. And the image on IPFS, not sitting on a platform server that gets switched off when the funding runs out.
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When Percy Shaw  OBE (1890 – 1976) – a successful inventor and entrepreneur invented cats eyes for your roadways, he could not read or understand computer code, seriously. He just knew what he wanted to achieve.
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READ IT TO BELIEVE IT 🚨 TESLA TRANSPORT PROTOCOL: THE GAME CHANGER THAT BREAKS THE TCP/IP SPEED LIMIT ⚡️ While the broader internet relies on TCP/IP, the universal standard that governs global data traffic, Tesla has architected a bespoke solution to meet the unique demands of AI training. With the publication of patent WO 2024/039793 A1, and underscored by the recent June 2025 continuation filing EP 4573730 A1, we gain insight into the custom networking stack driving Tesla's autonomy ambitions. The patent details the Tesla Transport Protocol (TTP). This is a hardware-native approach that bypasses the operating system entirely. By eliminating the software abstraction layer, TTP transforms a distributed network of thousands of GPU tiles into a cohesive, low-latency compute fabric. This architecture unlocks the single-digit microsecond latency required to train Full Self-Driving models at speeds that conventional networking stacks simply cannot match. To understand why this invention is necessary, we must first look at the invisible wall hitting current supercomputers. ⚖️ The engineering bottleneck: Software-defined latency In High-Performance Computing (HPC), the throughput of the entire cluster is often limited not by raw compute power, but by interconnect latency. For decades, the industry has defaulted to TCP/IP (Transmission Control Protocol/Internet Protocol). To the non-technical observer, TCP/IP acts as the rigorous "traffic rules" of the digital world. Designed for reliability above all else, it ensures data integrity by treating every packet like a registered letter. The system must open, inspect, and acknowledge receipt before processing the next. While this reliability is critical for the public internet, it introduces unacceptable overhead in a supercomputing environment. The protocol is software-heavy. It forces the Central Processing Unit (CPU) to constantly interrupt computational tasks to manage network traffic. This introduces latency, a digital reaction delay. While a few milliseconds is negligible for web browsing, it is an eternity for an AI training cluster processing billions of parameters per second. 🏗️ The architectural solution: Tesla Transport Protocol (TTP) To shatter this bottleneck, Tesla realized they couldn't just optimize the software. They had to delete it. They developed a proprietary flow control system: Tesla Transport Protocol. The core architectural shift involves offloading network management from the OS kernel directly to silicon. To understand why this matters, think of the OS kernel as a busy office manager who has to approve every single document that comes in or out of a company. Even if the manager is fast, they are also juggling a thousand other tasks, such as scheduling meetings, managing payroll, and answering phones. In a supercomputer, this "manager" (the software) becomes overwhelmed by the billions of data packets arriving every second. This causes a traffic jam. By implementing the Transport Layer directly into the Network Interface Card (NIC), Tesla effectively fires the manager. They build a pneumatic tube system that shoots documents directly to the recipient's desk. The Transport Layer is the logic responsible for ensuring data actually arrives at the right destination. This "hardware-offload" approach allows the system to manage connection lifecycles and data transfer autonomously. It effectively replaces the stop-and-go nature of software interrupt handling with the continuous, high-speed throughput of dedicated circuitry. Instead of a manager pausing to sign for every package, the packages flow on a conveyor belt that never stops moving. 🧩 Integration: The "Trojan Horse" header strategy However, creating a new protocol usually creates a new problem: incompatibility with existing cables and switches. Tesla avoided this with a clever disguise. The patent describes a packet header structure that maintains compatibility with existing hardware. To visualize this, imagine sending a top-secret document through the regular postal service using a specialized "Trojan Horse" envelope. Tesla wraps their data in a standard outer shell where the first 16 bytes mirror a standard Layer 2 Ethernet header. This allows standard networking equipment, such as off-the-shelf Ethernet switches from Cisco or Arista, to read the "address" and route the packet without realizing it carries anything unusual. This saves Tesla from building expensive, custom-made routing hardware. Yet, stamped on this standard envelope is a specific code called the EtherType (0x0AC6). This acts like a subtle "VIP" stamp. When a regular computer receives mail, it sends it to the mailroom (the OS software) to be slowly sorted. But when a Tesla NIC sees this specific stamp, it pulls the packet off the line immediately. It bypasses the mailroom entirely and sends the data directly to the high-speed sorting machine. This strategy allows Tesla to tunnel a Formula 1-grade protocol through standard, affordable network pipes. It combines the low cost of commodity hardware with the high performance of a supercomputer. ⏱️ Throughput: The 4-stage hardware pipeline Once the data bypasses the standard stack, the focus shifts to raw processing speed. The patent’s claim of single-digit microsecond latency is achieved through a deterministic 4-stage hardware pipeline. To understand why this is revolutionary, compare a standard software process to a single chef in a kitchen. The chef grabs an order, chops vegetables, and cooks the meat sequentially. If a phone rings (an interrupt), they stop working to answer it, creating unpredictable delays. Tesla’s hardware pipeline functions more like a bucket brigade or a factory assembly line. Every single time the chip’s internal clock ticks, work is passed instantly to the next station. In the first stage (Q0), the logic acts as traffic control, instantly picking the single most urgent stream to process. It immediately passes this to the second stage (Q1), which pulls the file on that connection, reading the status tag to verify the link is healthy. The third stage (Q2) acts as the brain, executing decision logic in a nanosecond to determine if a packet needs a replay or is safe to send. Finally, the fourth stage (Q3) commits the move by updating the internal memory pointers, readying the system for the next cycle. This pipeline creates a continuous "conveyor belt" of packet processing. It eliminates jitter, the tiny, unpredictable stutters that happen when software gets distracted. In this system, data moves with the relentless, metronomic precision of a Swiss watch. 🤖 State Management: The hardware Finite State Machine But raw speed is only half the equation. The system also needs to manage the lifecycle of these high-speed connections without clogging the system. Efficient connection management is handled by a hardware Finite State Machine (FSM). To understand this, think of a logic circuit like a rigid turnstile that can only be in one specific position at a time, such as locked, unlocking, or open, based on strict physical triggers. There is no ambiguity and no thinking involved, just immediate reaction to input. Crucially, this system solves one of the biggest inefficiencies in standard networking known as the "zombie connection" problem. In the traditional TCP world, closing a connection is like a painfully long goodbye at a doorway. Even after both sides agree to disconnect, the system enters a TIME_WAIT state. It keeps the memory slot reserved for several minutes, just in case a lost packet shows up late. In a supercomputer running millions of connections, these "ghosts" clog up valuable memory resources. TTP eliminates this lingering entirely. It introduces a ruthless "Intermediate Close" state. The moment an acknowledgement of closure is received, the hardware instantly kills the link. It doesn't wait for stragglers. It effectively flips the "Vacant" sign immediately, allowing the system to instantly recycle that memory slot for a new connection. This ensures that the expensive high-speed memory is always working, never waiting. 🔄 Error Correction: The "lossy" replay mechanism While efficient connection management keeps the highway clear, the system must also decide how to handle the inevitable accidents: lost data. Most internet protocols operate on a "lossless" philosophy, meaning they are obsessed with perfection. If a single packet of data is dropped, the entire operation grinds to a halt until that packet is recovered. While this ensures accuracy, it is a massive drag on speed. TTP operates on a "lossy" philosophy, acknowledging that in a hyperscale environment processing exabytes of data, dropping a few packets is inevitable and shouldn't stop the show. Think of the difference between downloading a critical file versus streaming a live video. When downloading a file, you need every single bit perfect, so you wait. When streaming video, if a few pixels are missing in one frame, the video keeps playing because speed is more important than absolute perfection in that microsecond. Tesla applies a similar logic to supercomputing but adds a high-speed safety net to catch the critical pieces. Rather than stalling the entire pipeline to ensure perfect order, the protocol keeps blasting data forward. If a receiving node detects a gap, such as a missing page in a book, it sends a Negative Acknowledgement (NACK) back to the sender. This signal essentially says, "I missed page 45, keep going, but send me a copy of 45 when you can." To fulfill this request instantly, the transmitting hardware maintains a linked-list in its high-speed memory. This acts like a library index card system, allowing the hardware to instantly locate the exact memory address of the missing packet. It then "replays" just that specific chunk of data without ever stopping the main transmission stream. This allows Tesla to maintain blistering speeds while still patching up errors on the fly. 🧠 Congestion Control: Physical backpressure Beyond handling errors, the system faces an even more fundamental physical challenge: preventing data floods. Flow control is the essential mechanism that prevents a fast sender from flooding a slow receiver and crashing the system. In standard networking, this acts like a complex bureaucracy where computers constantly negotiate "window sizes," trying to mathematically predict how much data they can handle next. TTP replaces this predictive negotiation with a simple, immutable mechanic: Physical Backpressure. To visualize the difference, imagine a warehouse loading dock that has exactly 10 parking bays. The traditional TCP/IP approach operates like a warehouse manager spending all day on the phone with trucking companies. They are constantly estimating unloading speeds and scheduling arrivals to prevent the lot from overflowing. This process is administrative, slow, and prone to miscalculation. Tesla, by contrast, essentially installs a mechanical boom gate at the entrance. If all 10 bays are full, the gate physically locks. There is no phone call, no math, and no prediction involved. The system operates on a rigorous "one-in, one-out" basis. The moment a truck leaves a bay (an acknowledgement is received), the gate automatically unlocks to admit exactly one new vehicle. This system relies on the on-chip SRAM (Static Random Access Memory), which is limited in size but incredibly fast. By binding transmission speeds directly to the physical availability of empty slots in memory, Tesla prevents data jams instantly and mechanically. This ensures that zero processor cycles are wasted on bureaucracy. ⏲️ Synchronization: The global hardware link timer With traffic flowing smoothly, the final challenge lies in policing the grid for idle connections without wasting energy. Monitoring timeouts—the limit on how long a computer waits for a response before giving up—for thousands of connections usually requires thousands of software timers. Managing this many timers is a massive drain on processing power. Tesla addresses this with a global hardware link timer that decouples timekeeping from individual connections. To visualize this, imagine a parking enforcement officer monitoring a long street of parked cars. The traditional method would be akin to hiring a separate officer with a stopwatch for every single car, staring at it to see if it stays too long. This is incredibly expensive and wasteful. Tesla’s solution functions like the "chalking tires" method. The system utilizes a round-robin scanner, which acts as a single digital officer walking down the line of cars in a continuous loop. It employs a "Timer Bit" strategy, which acts like the chalk mark on a tire. As the scanner passes a connection, it places a digital mark by setting the bit to 1. If the connection is active and sending data, it essentially "drives away" and returns, rubbing off the chalk mark by clearing the bit back to 0. When the scanner returns to that spot on its next loop, it checks the tire. If the chalk mark is still there, it knows the car hasn't moved for the entire duration of the loop. The connection is declared "timed out" and closed. This approach creates O(1) complexity, a computer science term meaning the effort required doesn't explode as you add more work. Whether there are 10 cars or 10,000, the officer just keeps walking the same efficient loop, allowing a single physical circuit to police thousands of links with negligible processing overhead. 🆚 Architectural Comparison: TCP/IP vs. TTP When we view these mechanisms together, the fundamental difference between the old world and the new becomes stark. The divergence between TCP/IP and TTP represents a shift from a "one-size-fits-all" public utility to a highly specialized racing machine. TCP/IP was architected for the internet, functioning much like a chaotic public highway system. It is designed to handle everything from mopeds to semi-trucks, but this versatility comes at a steep price. It requires traffic lights, stop signs, and police officers to manage the flow. Every time a packet arrives, the CPU must pause its work to act as a traffic cop. It has to check the "driver's license" and direct the vehicle. Conversely, TTP is purpose-built for the controlled environment of a data center, functioning like a private high-speed rail line. It treats network packets not as mail to be sorted, but as raw electrical signals to be processed by dedicated circuitry. There are no traffic lights, no other cars, and the tracks are welded together for a single purpose: speed. This structural difference exposes a massive efficiency gap caused by "context switching." In a TCP environment, every time the CPU has to handle network traffic, it must pause its main calculation work, save its progress, switch to "traffic cop" mode, and then switch back. Imagine a mathematician trying to solve a complex equation but being interrupted by a phone call every few seconds. The time spent putting down the pencil, answering the phone, and trying to remember where they left off represents this context switching tax. It introduces millisecond-level delays that accumulate into significant wasted time. TTP erases this waiting time entirely. By enforcing flow control through physical memory constraints and utilizing hardware state machines, it removes the "mathematician's phone" from the equation. This allows the compute cores to focus 100% on the math while the data flows automatically in the background. It achieves latencies effectively limited only by the speed of light through the fiber. 🚀 The future is bright: AI5 chip and the revival of Dojo 3 This patent is not just a legacy document for the original D1 chip. It is the strategic unlock for Tesla's renewed 2026 roadmap. Following the completion of the AI5 processor design, Tesla has officially restarted work on the massive Dojo 3 supercomputer. TTP is the invisible nervous system that makes this scaling possible. While the original Dojo proved the concept, Dojo 3 aims for a scale that is orders of magnitude larger. It requires connecting millions of AI5 cores to function as a single training brain. TTP allows this massive distributed system to operate without the crushing "chatter" of standard networking protocols. The immediate impact is on the rollout of Unsupervised FSD. While existing cars run on AI4, training the next-generation "end-to-end" neural networks requires crunching exabytes of video data. TTP enables Dojo 3 to ingest this fleet data at wire speed. This allows engineers to solve the rare "long tail" edge cases that still prevent full autonomy. Beyond cars, this architecture is the backbone for Optimus. The humanoid robot requires a fusion of vision, language, and complex physics simulations. This multimodal training demands even higher bandwidth than driving. TTP ensures that the Dojo clusters can handle this dense data flow without bottlenecks. Finally, this technology secures Tesla's strategic independence. By controlling the entire stack, from the TTP transport layer to the AI5 silicon, Tesla decouples itself from the supply chain constraints of third-party GPU vendors like NVIDIA. This allows them to scale their compute capacity on their own terms, potentially aiming for future frontiers like space-based AI inference clusters.
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Replying to @Cointelegraph
I smell M&A's/partnerships entering Crypto. While Maxis defend their precious, others see the big picture. More like the below soon to come!!! VAMANOS
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Ian Reader retweeted
Too many still reduce Ripple to “payments.” That’s a profound misunderstanding. Ripple and the XRP Ledger were structured, deliberately, for control across the entire stack of global finance and trade. The surface layer is visible; the deeper protocols are not. 🧵
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Ian Reader retweeted
Free second @XamanWallet Pro Subscription - first who claims it gets it! Follow @XRPLWin share & retweet for a chance to get Pro, more to come xumm.pro/c:B7DC9B6BC3DD77E51…
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John has paid forward ...
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#XRP #XRPCommunity #FUDBusters🚨 #Ripple #America America May 2013 - Google Ventures invests in Ripple October 2013 - Chris Larsen meets with; the SEC, Treasury Department, Federal Reserve, FDIC, NCUA, CFPB, IRS, CSBS, FTC, FinCEN, OFAC, FBI, and U.S. State Department to discuss Ripple and XRP. April 2014 - The Government Accountability Office calls XRP a virtual currency. June 2014 - Ripple Joins NACHA Payments Innovation Alliance August 2014 - Ripple partner SnapSwap teams up with Knox Payments to enable Ripple services with Wells Fargo, Bank of America, Capital One, Capital One 360, USAA, TD Bank, US Bank, PNC, and Chase May 2015 - FinCEN and DOJ call XRP a currency. June 2015 - Ripple Appoints DTCC's Former CEO Donald Donahue, as Advisor... The T+1 Settlement cycle goes live in May 2024. April 2016 - MIT running a validator for the Ripple Consensus Ledger 2016 - Ripple partners with Bank of America 2016 - BNY Mellon explores Ripple proof of concept in a report titled "Modernization of Payments and Collections" November 2017 - American Express partners with Ripple November 2018 - 15 JP Morgan executives visit Ripple. August 2019 - PNC Bank live on the Ripple payments network April 2020 - Bank of America’s Head of Global Banking Julie Harris said, “It’s not about our platform and our capabilities, it’s about you as a client and the infrastructure you have and the ability for us to integrate, whether that’s with platforms and capabilities that we built or partnerships that we have with the likes of Ripple or Swift.” May 2020 - The U.S. Consumer Financial Protection Bureau (CFPB) recognized the role of Ripple and XRP in cross-border transfers. September 2020 - Ripple Partner Volante Allies with Goldman Sachs to Launch Cloud-Based Digital Transaction Banking Platform January 2021 - CITI Bank Extends Partnership With Ripple-Powered Volante May 2021 - Former Treasurer of the United States Rosie Rios joins Ripple. November 2021 - The World Bank Calls XRP a Stablecoin in a research paper titled “Central Bank Digital Currencies for Cross-Border Payments.” March 2022 - Goldman Sachs' Investment Banking Division, identifies Ripple as an "opportunity in payments," alongside Circle, and Coinbase in a report titled "Overview of Digital Assets and Blockchain," March 2022 - Ripple Partner, The Clearing House and Wells Fargo collaborate on SWIFT Replacement July 2022 - Former Ripple advisor Michael Barr becomes Vice Chair of the Board of Governors of the Federal Reserve. September 2022 - Ripple joins the Digital Dollar Project March 2023 - IMF notes 3 projects for cross-border payments, Ripple, Stellar, and Strike in a research paper titled "Trust Bridges and Money Flows A Digital Marketplace to Improve Cross-Border Payments" May 2023 - NASDAQ congratulates Ripple on Metaco's acquisition June 2023 - Ripple and its partners ACI Worldwide, Volante, Temenos, and Finastra are included in the FedNow pilot program. FedNow program to encompass ALL 10,000 banks located in the United States. July 2023 - US Federal Court determines XRP is NOT a Security. July 2023 - Bank of America praised Ripple in a report titled “Breaking New Ground: Harnessing Payments Innovation in APAC." July 2023 - Ripple partners with Faster Payments Council August 2023 - Ripple joins the International Swaps and Derivatives Association (ISDA) alongside, JP Morgan, and Blackrock. August 2023 - Amazon Partners with Ripple, to use XRP for Payments September 2023 - Lauren Belive, a former official with the White House’s Office of Legislative Affairs and policy director with the United States House Committee on Rules, joined Ripple as its head of U.S. public policy and government. January 2024 - BNY Mellon's head of digital asset product Maxime de Guillebon joins Ripple. January 2024 - Google Cloud Joins Ripple (XRP) Partner Flare's Blockchain. February 2024 - Ripple Announces Acquisition of Standard Custody & Trust Company (SCTC). This will contribute to Ripple’s New York BitLicense and the nearly 40 money transmitter licenses across the U.S. 🖕@Forbes
#XRP #XRPCommunity #Ripple #Canada Canada February 2016 Royal Bank of Canada Reveals Blockchain Trial With Ripple September 2018 - The Royal Bank of Canada backed Ripple’s technologies and suite of products to revolutionize the remittance and banking industries in a report titled "Imagine 2025"👀 January 2021 - Ripple partner PNC Bank buys Ripple partner Tempus. Tempus uses RippleNet to provide FX solutions for Ripple partner Remitr in Canada. October 2021 - Ripple Partner CGI Teams up with the Bank of Montreal and National Bank of Canada March 2022 - The National Bank of Australia (NAB) and the Canadian Imperial Bank of Commerce (CIBC), have signed a deal that facilitates cross-border payment settlements using Ripple’s RippleNet solution. September 2022 - Royal Bank of Canada Partners with Ripple Ventures to Support Underrepresented Students Looking to Become Founders and Funders March 2023 - The Royal Bank of Canada posits that Ripple is superior to Moneygram and Western Union April 2023 - Ripple partner Intermex acquires LAN Holdings to conquer Spain, Italy, Germany, and, Canada June 2023 - Ripple's UBRI partners with the University of Toronto to help the uni launch an independent XRP Ledger validator. February 2024 -Ripple Partners with Axelar for RWA tokenization and cross-chain communication on XRPL
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Ian Reader retweeted
I put in $500K of my own money because I know I can win. Please help me get to $1 million by March 31. Donate traditionally or through Crypto because freedom is on the line.
If I could self-fund, I would, because freedom is on the line. I need your help. Whatever you can afford, go to johndeatonforsenate.com/dona… and pitch in. Let’s send a message to Washington elites, the people are coming for @ewarren’s Senate seat. I promise, I will fight for you.
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craig wright is not satoshi its official now from a UK court, I believe he is now free to join SEC as head of enforcements department😵‍💫they have been waiting for a guy with this tenacity since Hinman
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🚨 Why are crypto ponzis always related to new stablecoins? A long post. ▫️ Buy 1 ETH for $3,000 ▫️ Stake ETH into stETH ▫️ Turn stETH into wstETH ▫️ Use wstETH to mint mkUSD ▫️ Use mkUSD to borrow more ETH ▫️ Stake ETH into stETH... This is how you create magic money and turn 3k into 30k. You double, triple, quadruple count the same collateral aka leverage it. DeFi's total market cap pumps dozens of billions overnight in a bull market and also crashes 90% in a bear market because of it. It's all FAKE money. You create more "money" from nothing and stablecoins are a key ingredient in that recipe. They allow you to leverage up, fast. This is no different than fractional reserve banking where your $3,000 bank deposit turns into $29,999 new money created from thin air. To achieve such a feat, it takes 100 cycles of deposits. See my picture. Crypto never reaches 100 cycles, because the bubble bursts sooner rather than later. Fiat "economists" even call this process a "business cycle". A more appropriate name is a bubble driven by ponzinomics and irresponsible money creation due to greed. If you read crypto twitter, you will see people talk about liquid staked tokens (LST like stETH) and liquid re-staking tokens (LRTs like reETH) as the next best thing in crypto since sliced bread. WRONG. It's the next big bubble or ponzi. EigenLayer should not excite you, it should WORRY you! If you seek an alternative view, then hit a follow @duonine to stay updated as this bubble develops. Once you start seeing this "amazing" new LRT token being used to mint stablecoins on your X feed know that the bubble is about to reach its peak. The higher the market cap of those new shinny stablecoins backed by LRTs tokens, the bigger the bubble. Remember, $3,000 is the actual collateral for $30,000! That's a 10x leverage. If ETH is 3k and it crashes by 10% or $300, the bubble deflates by 3k! That's 3k gone in your new shiny LRT stablecoin! Such stablecoins will go to zero in the worst case scenario. This is how a liquidation cascade starts and panic begins. Why does this concern me? Because it will hurt native ETH holders that don't even stake their ETH. Picture this. Let's say the LRT bubble grows to $50 billion. Actual backing? $5 billion in ETH or even less. How exactly can $50 billion exit or sell at a profit using $5 billion of ETH collateral? It can't. What happens next is people get wiped out. LST and LRT tokens crash vs ETH's price by 10%, 50% or more. Any stables backed by LST/LRT tokens depeg and crash even more. In the process, as $50 billion of fake money wants to exit, it will drag down ETH's price beyond a normal correction or crash. ETH is the liquidity of last resort for LST/LRT tokens. Worse. It will drag down BTC's price as well. Because people will become DESPERATE to exit at ALL costs, even if they lose 50% of their money or more. BTC is the liquidity of last resort in crypto, just like the Fed for USD. This is why bear markets are BRUTAL. They correct such imbalances. They are necessary and do well to punish such greed. Don't believe me? Have you heard of Blast L2? That's an ENTIRE network that will use LST tokens and stablecoins backed by LSTs to give its users "native yield". Those users have no idea what's coming in the next two years and they deposited BILLIONS on Blast L2. Projects always seek to create more yield to attract users, but that comes at the risk of an entire network like Blast going insolvent if they don't control their greed. Do you trust them to put breaks on making free money? In the last crypto cycle, Terra Luna UST imploded to 0 from $50 billion. It also used a stablecoin for their project. It double, triple, quadruple counted the same money while pretending it was real. Greed took over. You need to EXIT early and well before that $5 billion in real collateral is gone. Cash out and don't ape back. That includes removing all assets from networks like Blast L2. You are only safe on NATIVE chains like ETH or BTC. This time, the bubble will use ETH LRTs and associated stablecoins. I'm concerned and few people will write about this because it puts a break on this bubble and greed. I've seen too many crypto cycles repeat the same story. This is nothing new. At the end of the day, crypto is a free for all. There's no regulation, but at least we can educate. Why risk your ETH for 3-6% yield when ETH will 2-5X this cycle? Funny enough, this LST/LRT bubble will also be the reason ETH will pump hard because all those tokens will LOCK-UP ETH as collateral in a huge pyramid. When Vitalik decided to take Ethereum from Proof of Work to Proof of Stake he enabled and allowed the creation of such ponzimonic mechanisms. For this reason alone, Bitcoin is superior. Don't be fooled by this market and don't let greed take over. It ends badly. Hit a like and retweet this message to wake up more people and don't forget to follow me @duonine P.S. I respect anyone building in this space and any examples or tokens mentioned above are used for illustration purposes only. What will eventually happen, we will all find out, but let's call it as it is.
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🚨Patented RippleNET ODL - ENDGAME🚨 🔥 What are patents US2021192501A1 / WO2021126787A1, and why are they significant? 🔥 Cross-MEDUIM vs Cross-BORDER transactions 🔥 Was the SEC lawsuit motivated by these patents? 🔥Why has Ripple pivoted from #ODL branding to #XRP? 🧵
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