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Siddharth Gupta
Siddharth Gupta@siddygups · Student
seems a bit like ripple or stellar?
Nick Tomaino
Nick TomainoHunter@ntmoney · low extraversion, high conviction
@siddygups a little similar. Ripple and Stellar are protocols that require trusted gateways to provide conversion services. They do allow you to send fiat and receive currency, the big difference for the purpose of an average user is that an order of magnitude more people use the Bitcoin than the Ripple and Stellar protocols. Bitcoin has over 12M users, 80,000 merchants, and 10,000 developers using it. The 5-sided network effect (consumers, merchants, developers, miners, investors) makes it difficult for another protocol/digital currency to displace it. You can think of Coinbase as a trusted gateway for Bitcoin that provides this service. Another benefit of Bitcoin is that trusted gateways aren't required-- you can use the Bitcoin software without trusting anyone. This is not the case with a Stellar and Ripple. This is extremely powerful.
Siddharth Gupta
Siddharth Gupta@siddygups · Student
@ntmoney Thanks! I have a couple more questions: Does the lack of trusted partners introduce any risk in the process? From a more technical standpoint is this essentially using bitcoin as an intermediary to increase the number of options for converting currencies? If I were trying to create a remittance platform for people to send money to another country, would this be able to facilitate this process? I looked into stellar and ripple but neither had the adoption needed for such a system to really work.