[fusion_builder_container hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”no” min_height=”” hover_type=”none” link=””][fusion_text]Source: ARK Disrupt Issue 81: July 5th, 2017 https://ark-invest.com/research/ark-disrupt-issue-81

Ripple is an opt-in network that enables transactions in any currency – including bitcoin – and is striking partnerships with an increasing number of well-known financial institutions. Unlike traditional payment rails, Ripple’s network powers fast, real-time, and low-cost transactions. Like many blockchain networks, Ripple is a public database, or ledger, that cryptographically records all transactions securely, transparently, and pseudonymously.

One of Ripple’s distinguishing characteristics is its “validating nodes”, or gateways to highly reputed wallets. Other wallets in the system trust these nodes to advance the ledger sequence, propagating and sustaining the network. Currently, Ripple oversees and hosts these validating nodes. An example is Gateway Ripple Singapore, a ramp for currencies to move into and out of the Ripple network.

image depicting ripple network
Source: https://ripple.com/

A recent study, however, exposed some vulnerability in Ripple’s network, especially in small world networks with few gateways. Pedro Moreno-Sanchez at Purdue University simulated the impact of a broad financial meltdown on a small world network. The removal of just 10 validation nodes isolated tens of thousands of other wallets from Ripple’s network.

In May, recognizing the need to make the XRP ledger more robust and resilient, Ripple proposed a way to decentralize the network and distribute its oversight. First, it intends to increase the number of validating nodes. Then, it will replace half of the existing validating nodes with attested third party nodes.

ARK agrees that such diversification could be critical in preventing catastrophic network failures. Further, the addition of non-Ripple operated nodes will enhance the network’s governance, both introducing privacy and enhancing the network’s reliability.[/fusion_text]

[fusion_text]ARK’s statements are not an endorsement of any company or a recommendation to buy, sell or hold any security. For a list of all purchases and sales made by ARK for client accounts during the past year that could be considered by the SEC as recommendations, click here. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. For full disclosures, click here.[/fusion_text]


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Fred Pye

Frederick T. Pye


Frederick T. Pye is the Chairman, Chief Executive Officer and Director of 3iQ Corp. He is also the Chairman and Director of 3iQ Digital Holdings Inc. Mr. Pye is recognized for creating and promoting creative and unique investment products for the investment industry.

Mr. Pye has managed private client portfolios with Landry Investment Management and various other investment dealers. Prior to this Mr. Pye was Founder, President & Chief Executive Officer of Argentum Management and Research Corporation, a company dedicated to managing and distributing quantitative investment portfolios including the first long-short mutual fund in Canada.

He was also Senior Vice-President and National Sales Manager of Fidelity Investments Canada and an integral part of the team that saw assets rise from $80 million to over $7.5 billion in assets under management during his tenure. He also held various positions with Guardian Trust Company, which listed the first Gold, Silver and Platinum Certificates on the Montreal Exchange.

Mr. Pye obtained a Masters in Business Administration from Concordia University.