Last night I dropped two new Amendment ideas into the XRPL Standards discussions to introduce extra layers of native security for bridges, exchanges, and vaults on the XRP Ledger.
https://t.co/rLEv69KKx2
The motivation?
Rising social-engineering scams and the need for enhanced on-chain protection as regulatory clarity arrives. Time to close these attack vectors at the protocol level.
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Deposit Authorization :-
This introduces two new transaction types:
DepositNoauth - The simple counterparty to DepositPreauth. Instantly block unwanted payments from specific addresses while still happily accepting deposits from everyone else.
DepositSetauth - The partner to DepositNoauth and DepositPreauth. Subscribe once to a trusted providerโs blocklist or allowlist and your account automatically inherits their rules.
โ Full proposal: https://t.co/0T5ttiZ5zL
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Withdraw Authorization :-
This introduces two new transaction types:
WithdrawNoauth - The sender-side mirror to DepositNoauth. Instantly block outgoing payments to specific bad addresses while still sending freely to everyone else.
WithdrawPreauth - The sender-side whitelist that pairs perfectly with DepositPreauth. Turn it on and your account can only send payments to the trusted addresses you approve for instant built-in scam protection.
โ Full proposal: https://t.co/rKf4Ik0dXk
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Both proposals are live for public testing right now on our Devnet Portal at https://t.co/rRgrnRBNqI (built specifically for this purpous after the @xrpl_commons Core Dev Bootcamp).
Just connect to the custom node, generate accounts, and fire off transactions using the ready-made template library with dropdowns and simple entry fields.
Drop any thoughts or feedback below and if you test them, screenshot your results. Would love to see how they perform in the wild! ๐
#XRPLedger #Protocol #Development @XRPLF@RippleXDev@Ripple
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๐ช๐ต๐ฎ๐ ๐ถ๐ ๐ถ๐ป๐๐ฒ๐ฟ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ, ๐ฎ๐ป๐ฑ ๐๐ต๐ฎ๐ ๐ณ๐ฎ๐ฐ๐๐ผ๐ฟ๐ ๐ถ๐บ๐ฝ๐ฎ๐ฐ๐ ๐๐ต๐ฒ ๐ถ๐ป๐๐ฒ๐ฟ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ ๐ฟ๐ฎ๐๐ฒ?
Letโs break it down:
Every time a consumer swipes a card to make a purchase, the merchant pays an interchange fee.
Revenue from the fee gets divided among parties that facilitated the transaction: the banks that send and receive the payment, the card network, the payment processor, andโmore recentlyโfintechs and businesses that embed payments.
When you take the bird-eye view diagram below ๐ as an example:
If a user swipes a card issued by a Neobank, $1.70 (interchange fee) goes to the issuing bank and the card network, $0.50 (acquiring fee) goes to the acquiring bank.
Interchange fees are not always the same though.
๐ช๐ต๐ฎ๐ ๐ณ๐ฎ๐ฐ๐๐ผ๐ฟ๐ ๐ถ๐บ๐ฝ๐ฎ๐ฐ๐ ๐ถ๐ป๐๐ฒ๐ฟ๐ฐ๐ต๐ฎ๐ป๐ด๐ฒ ๐ฟ๐ฎ๐๐ฒ?
โบ Credit vs. Debit
Interchange rates on credit cards are significantly higher than those on debit cards.
โบ Rewards programs
These benefits are financed through higher interchange rates, and have proven to be very popular with consumers.
โบ Online vs. Offline
Online purchases are less secure than in-person purchases.
โบ Consumer vs. Commercial
Cards associated with business or corporate accounts carry higher interchange rates than consumer cards.
โบ Merchant Category Code (MCC)
Every merchant is categorized by the major card networks according to a Merchant Category Code (MCC). This means that there are different interchange rates depending on whether someone uses a card in a supermarket, a retail store, a gas station, or with some other form of merchant.
โบ The Card Network
Different card networks charge different rates. Visa and Mastercard are known for charging lower rates. Other networks like AMEX are known for charging higher rates.
โบ Network partner programs
Visa and Mastercardโs partner programs like VPP (Visa Partner Program) and MPP (Mastercard Partner Program) often give specific retailers interchange rates that are much lower than the networksโ published interchange rates.
โบ Size of the issuing bank (๐ข๐ก๐๐ฌ in the US ๐บ๐ธ)
Larger banks are subject to a regulation called the Durbin Amendment that caps interchange rates on consumer debit transactions. Smaller banks are exempt.
As a result, these smaller banks can earn more revenue from interchange rates, which benefits FinTechs and embedded finance businesses that partner with them.
Read my complete source article for more info: https://t.co/8y9tAIbxH0
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Awesome work @andreirosseti - @evergramhq is bringing new vibes to the ecosystem ๐ช๐ผ
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For the past 11 years, Iโve built on the XRP Ledger as a developer, infrastructure operator, and community participant. Stepping into the Executive Director role at the XRPL Foundation is an opportunity to help steward the network through its next phase of growth.
My focus will be ensuring the ledger remains resilient, scalable, and well-governed while strengthening participation from the developers, validators, and businesses building the future of this ecosystem. Excited to get to work alongside the global XRPL community.