Ripple & XRP Overview UNSW Blockchain & DLT Symposium - PowerPoint PPT Presentation

Ripple & XRP Overview UNSW Blockchain & DLT Symposium FEBRUARY 2018 Dilip Rao, Global Head - Infrastructure Innovation WKEGKJJD6ITW3SPXJHEP 1 MKFEX6ANMB7U

1. Who We Are 2. Solutions Agenda 3. XRP: The Digital Asset for Payments 4. Platform for Innovation 5. Q&A WKEGKJJD6ITW3SPXJHEP WKEGKJJD6ITW3SPXJHEP 2 2 MKFEX6ANMB7U MKFEX6ANMB7U

Who We Are WKEGKJJD6ITW3SPXJHEP 3 MKFEX6ANMB7U

Company Overview Our Investors Google Ventures London Luxembourg San Francisco Tokyo New York SBI Ripple Asia Mumbai Singapore Total Funding Sydney $94M F O U N D E D 2 0 1 2 WKEGKJJD6ITW3SPXJHEP 4 MKFEX6ANMB7U

O U R V I S I O N The Internet of Value: Enable the world to move money like information moves today. WKEGKJJD6ITW3SPXJHEP 5 MKFEX6ANMB7U

O U R M I S S I O N To remove friction from global payments. WKEGKJJD6ITW3SPXJHEP 6 6 MKFEX6ANMB7U

Sample of Our Growing Network of 100 Customers GZ2T3MYZA5F3SSZUEPP CONFIDENTIAL 7 7LM73SBF2IK66

xCurrent Overview WKEGKJJD6ITW3SPXJHEP 8 MKFEX6ANMB7U

Bidirectional Messaging Lowers Operational Costs Originating Bank Beneficiary Bank xCurrent xCurrent Information Transparency No Payment Failures Automated Reconciliation Messenger Messenger Bidirectional Messaging ILP ILP Ledger Ledger Real-time Settlement Real-time Settlement Validator WKEGKJJD6ITW3SPXJHEP 9 MKFEX6ANMB7U

Settlement Through Ripple Enables New Offerings Originating Bank Beneficiary Bank xCurrent xCurrent Messenger Messenger Atomic Settlement Real-Time Payments ILP ILP ILP No Settlement Risk Ledger Ledger Ledger 24/7 On-Demand Availability Real-time Settlement Real-time Settlement Validator WKEGKJJD6ITW3SPXJHEP 10 MKFEX6ANMB7U

xCurrent Components Messenger: Provides a set of services for integration of payment processing, manages the secure messaging between partner institutions and the orchestration of the end-to-end payment. Bank ILP Ledger: Stores and manages liquidity positions between the participants, this ledger would coordinate movement of funds in hold and liquidity provider accounts based on cryptographic events. Operated at each participant. Messenger Connector: Service which connects to sending and receiving ILP ledgers, provides rates for exchange (FX) Validator and executes the transfer between its own funds and escrow. Operated by liquidity provider. Validator: Service which coordinates the execution of transfer between the connector and ILP Ledger, Bank Ledger ILP Ledger Connector providing a final non-repudiable outcome of the settlement. Generally operated by the liquidity owner, can be operated by a third party. WKEGKJJD6ITW3SPXJHEP 11 MKFEX6ANMB7U

XRP The Digital Asset for Payments WKEGKJJD6ITW3SPXJHEP 12 MKFEX6ANMB7U

Performance at Scale WKEGKJJD6ITW3SPXJHEP 13 MKFEX6ANMB7U

The XRP Ecosystem is Maturing WKEGKJJD6ITW3SPXJHEP 14 MKFEX6ANMB7U

Use Cases for XRP Nostro replacement, Universal Bridge WKEGKJJD6ITW3SPXJHEP 15 MKFEX6ANMB7U

Today: Pre-Funding in Destination Currencies Is Expensive UAH USD JPY THB XAF BRL AUD WKEGKJJD6ITW3SPXJHEP 16 MKFEX6ANMB7U

Problem: Delayed Settlement Results In Trapped Cash $27 Trillion Float sitting in transaction accounts globally WKEGKJJD6ITW3SPXJHEP 17 MKFEX6ANMB7U

xRapid Eliminates Pre-Funding in Destination Currencies UAH USD JPY THB XAF BRL AUD WKEGKJJD6ITW3SPXJHEP 18 MKFEX6ANMB7U

xRapid reduces the opportunity cost of capital No Float Liquidity on demand WKEGKJJD6ITW3SPXJHEP 19 MKFEX6ANMB7U

xRapid Overview WKEGKJJD6ITW3SPXJHEP 20 MKFEX6ANMB7U

xRapid is an API-based Product WKEGKJJD6ITW3SPXJHEP 21 21 MKFEX6ANMB7U

xRapid Solution xRapid provides on-demand access to liquidity through digital asset exchanges F A S T T R A N S P A R E N T L O W C O S T Transactions are instant Real time APIs provide Reduce costs (3-5 secs) across to the second status of significantly with exchanges, and vary their payments via APIs lowered transfer fees, depending on local rails and FX rates that beat or match spot FX WKEGKJJD6ITW3SPXJHEP 22 MKFEX6ANMB7U

xRapid Competitive Advantage FX Settlement rail Speed Other Costs Certainty Cost Bitcoin, Ethereum, etc Several hours Delivery confirmation 70 bps $10.00 avg network fee Cost of maintaining SWIFT/nostro account Days 70-150 bps No confirmation nostro account xRapid + XRP Minutes Delivery confirmation 30 bps* $0.001 avg network fee WKEGKJJD6ITW3SPXJHEP 23 MKFEX6ANMB7U * subsidized based on competitive FX rates

Cuallix Use Case Problem: Cuallix required costly pre-funding to support payments into Mexico Solution: xRapid eliminated pre-funding by leveraging XRP and liquidity at digital asset exchanges Results: Payments in 2-3 minutes at a fraction of the cost WKEGKJJD6ITW3SPXJHEP 24 24 MKFEX6ANMB7U

Overlay Services Modernizing Payment Infrastructure Banks & NBFIs Risk & Governance We believe that modernizing a common clearing + settlement architecture and infrastructure is an Rule Sets (Part Shared) opportunity for innovation and will unlock much larger value up the stack. A consulting approach to exploration and trial can mitigate risks as the Bi-directional Messaging technology evolves. Shared Settlement Infrastructure (DLT) WKEGKJJD6ITW3SPXJHEP 25 MKFEX6ANMB7U

NATIONAL PAYMENTS I mmediate Payments PLUS xBorder Platform for cyber-resilience. Ripple: Platform for Innovation INTEROPERABILITY Connect with other national platforms to spur regional Central Banks and national Infrastructures can economies. engage with Ripple to innovate with proven building blocks in Distributed Ledger Technology. Preserve sovereign rights while transacting seamlessly with regional economies DIGITAL ASSETS for global growth. Experiment with digital/crypto assets on private or public distributed ledger technologies. WKEGKJJD6ITW3SPXJHEP 26 MKFEX6ANMB7U

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Appendix XRP Consensus vs Proof of Work WKEGKJJD6ITW3SPXJHEP 28 MKFEX6ANMB7U

XRP Is An Open System 1. Amendments are proposed 2. Validators vote on each 3. Successful amendments go as pull requests on Github amendment live on the network WKEGKJJD6ITW3SPXJHEP 29 MKFEX6ANMB7U

Bitcoin/Ethereum Miners Can Vote Regardless of User Opinion. WKEGKJJD6ITW3SPXJHEP 30 MKFEX6ANMB7U

XRP Validators Are Appointed By Users Users decide their Unique Node Lists (UNLs) — the list of validators they will listen to. WKEGKJJD6ITW3SPXJHEP 31 MKFEX6ANMB7U

China accounts for 70% of BTC/ETH mining. WKEGKJJD6ITW3SPXJHEP 32 MKFEX6ANMB7U

XRP Validators Are Globally Distributed Users decide which validators are trusted. WKEGKJJD6ITW3SPXJHEP 33 MKFEX6ANMB7U

Proof-of-work incentivizes only mining The cheaper you can mine, the more money you make. WKEGKJJD6ITW3SPXJHEP IMAGE GILLES SABRIE/NYT 34 34 MKFEX6ANMB7U

Proof-of-work incentivizes only mining The cheaper you can mine, the more money you make. WKEGKJJD6ITW3SPXJHEP IMAGE GILLES SABRIE/NYT 35 35 MKFEX6ANMB7U

Ripple Consensus incentivizes what users value Ripple validators are chosen by Ripple users (banks, payment providers, etc) and are selected based on security, track record, jurisdiction, etc. WKEGKJJD6ITW3SPXJHEP IMAGE ATTOKYO 36 MKFEX6ANMB7U

Ripple Consensus incentivizes what users value Ripple validators are chosen by Ripple users (banks, payment providers, etc) and are selected based on security, track record, jurisdiction, etc. WKEGKJJD6ITW3SPXJHEP IMAGE ATTOKYO 37 MKFEX6ANMB7U

Ripple Consensus incentivizes what users value Ripple validators are chosen by Ripple users (banks, payment providers, etc) and are selected based on security, track record, jurisdiction, etc. WKEGKJJD6ITW3SPXJHEP IMAGE ATTOKYO 38 MKFEX6ANMB7U

XRP Is The First Enterprise-Ready Digital Asset Built with security, scalability and compliance in mind. WKEGKJJD6ITW3SPXJHEP 39 MKFEX6ANMB7U

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