The Problem of Ripple IOU Divisibility and Ripple Gateways

Technical questions about the Ripple API, the protocol, etc.

The Problem of Ripple IOU Divisibility and Ripple Gateways

Postby twarden » Thu Nov 22, 2018 6:17 pm

In the mind set of a precious metals company wishing to operate as a Ripple Gateway, some Ripple IOUs they issue would have a problem that they are divisible.

For example, if I were to wish to issue the new 1oz Liliana Silver "coin," then I would want to ensure that when I post an offer-create to an order-book, say offering it for XRP for its fair market price as a numismatic coin with a known serial number to the customer (lower certificate numbers are seen as more valuable), then there must be some reliable mechanism for the issuer to state that specified Currency Codes may only be fully, partially, or non-divisible and for these settings to be known by the Ripple account holder who is considering extending trust for these unique asset classes issued over the RCL.

The implementation of this feature will provide a solution to the potential problem of an issuance no longer being viably redeemed as a bad actor has purchased a very small amount of the IOU but a large enough amount to then attempt to create a 'secondary market' by reselling these specially issued Ripple IOUs for profit derived from the intended market audience.

Don't worry! I'm pretty sure that I got this under control, the last crazy visionary was was far too insane, but I struck the correct balance.
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