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Make issuing/operational address intro into a snippet (#185)

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* Issuing / Operational Addresses snippet

* issuing/operational addresses - minor rewording

* issuing/operational addresses - better parallel structure in explaining positive/negative
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Rome Reginelli
2016-05-17 15:41:42 -07:00
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concept-issuing-and-operational-addresses.html
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<main class="main" role="main">
<div class='content'>
<h1 id="issuing-and-operational-addresses">Issuing and Operational Addresses</h1>
<p>All non-XRP currency balances (issuances) in the Ripple Consensus Ledger (RCL) are tied to accounting relationships between two Ripple addresses. To control an address in the RCL, you only need the secret key mathematically connected to that address. Since no party can unilaterally prevent transactions or correct the ledger, financial institutions typically use multiple Ripple ledger addresses to minimize the risk associated with a compromised secret key. Ripple strongly recommends the following separation of roles:</p>
<p>In the Ripple Consensus Ledger, financial institutions typically use multiple Ripple addresses to minimize the risk associated with a compromised secret key. Ripple strongly recommends the following separation of roles:</p>
<ul>
<li>One <strong>issuing address</strong>, also known as a "cold wallet." This address is the hub of the financial institution's accounting relationships in the ledger, but sends as few transactions as possible.</li>
<li>One or more <strong>operational addresses</strong>, also known as "hot wallets." Automated, internet-connected systems use the secret keys to these addresses to conduct day-to-day business like transfers to customers and partners.</li>
<li>Optional <strong>standby addresses</strong>, also known as "warm wallets." Trusted human operators use these addresses to transfer money to the operational addresses.</li>
</ul>
<h2 id="funds-lifecycle">Funds Lifecycle</h2>
<p>All non-XRP currency balances (issuances) in the Ripple Consensus Ledger (RCL) are tied to accounting relationships between two Ripple addresses. When a financial institution uses Ripple's recommended separation of roles, funds relating to that institution tend to flow in a cycle.</p>
<p><a href="img/funds_flow_diagram.png"><img alt="Diagram: Funds flow from the issuing address to standby addresses, to operational addresses, to customer and partner addresses, and finally back to the issuing address." src="img/funds_flow_diagram.png"/></a></p>
<p>Funds in the Ripple Consensus Ledger tend to flow in a cycle. When the issuing address sends payments, it creates balances in the accounting relationships in the Ripple Consensus Ledger. Within the RCL, users can exchange balances across different accounting relationships, so we use the term <em>issuances</em> to describe any non-XRP balance. Issuances have positive value from the perspective of the customers, partners, operational addresses, and standby addresses. The same issuances are negative balances from the perspective of the issuing address, since they represent obligations. When the issuing address receives a payment, this reduces its obligations, effectively "destroying" the issuances that were sent.</p>
<p>The issuing address sends issuances to a standby address, or directly to an operational address. The standby addresses send those issuances to operational addresses. Operational addresses send payments to liquidity providers or other customers and partners. Because all issuances are tied to accounting relationships with the issuing address, payments and exchanges of issuances "ripple through" the issuing address. The payment debits the sender's balance in its accounting relationship with the issuing address and credits the recipient's balance in the recipient's accounting relationship with the issuing address. The Ripple Consensus Ledger also supports more complicated <a href="concept-paths.html">paths</a> that connect multiple issuers through order books and <a href="concept-noripple.html">liquidity providers who allow their funds to ripple</a>.</p>
<p>When the issuing address sends payments, it creates balances in the accounting relationships in the Ripple Consensus Ledger. Within the RCL, users can exchange balances across different accounting relationships, so we use the term <em>issuances</em> to describe any non-XRP balance. Issuances have positive value from the perspective of the counterparties. The same issuances are negative balances from the perspective of the issuing address, since they represent obligations. When the issuing address receives a payment, this reduces its obligations, erasing the issuances that were sent.</p>
<p>The issuing address sends issuances to a standby address, or directly to an operational address. The standby addresses send those issuances to operational addresses. Operational addresses send payments to other counterparties, such as liquidity providers, partners, and other customers. Because all issuances are tied to accounting relationships with the issuing address, payments and exchanges of issuances "ripple through" the issuing address. The payment debits the sender's balance in its accounting relationship with the issuing address and credits the recipient's balance in the recipient's accounting relationship with the issuing address. The Ripple Consensus Ledger also supports more complicated <a href="concept-paths.html">paths</a> that connect multiple issuers through order books and <a href="concept-noripple.html">liquidity providers who allow their funds to ripple</a>.</p>
<h2 id="issuing-address">Issuing Address</h2>
<p>The issuing address is like a vault. Partners, customers, and operational addresses create accounting relationships (trust lines) to the issuing address, but this address sends as few transactions as possible. Periodically, a human operator creates and signs a transaction from the issuing address in order to refill the balances of a standby or operational address. Ideally, the secret key used to sign these transactions should never be accessible from any internet-connected computer.</p>
<p>Unlike a vault, the issuing address can receive payments directly from customers and partners. Since all transactions in the Ripple Consensus Ledger are public, automated systems can monitor for payments to the issuing address without needing a secret key.</p>

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content/concept-issuing-and-operational-addresses.md
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# Issuing and Operational Addresses #
All non-XRP currency balances (issuances) in the Ripple Consensus Ledger (RCL) are tied to accounting relationships between two Ripple addresses. To control an address in the RCL, you only need the secret key mathematically connected to that address. Since no party can unilaterally prevent transactions or correct the ledger, financial institutions typically use multiple Ripple ledger addresses to minimize the risk associated with a compromised secret key. Ripple strongly recommends the following separation of roles:
* One **issuing address**, also known as a "cold wallet." This address is the hub of the financial institution's accounting relationships in the ledger, but sends as few transactions as possible.
* One or more **operational addresses**, also known as "hot wallets." Automated, internet-connected systems use the secret keys to these addresses to conduct day-to-day business like transfers to customers and partners.
* Optional **standby addresses**, also known as "warm wallets." Trusted human operators use these addresses to transfer money to the operational addresses.
{% include 'snippets/issuing-and-operational-addresses-intro.md' %}
## Funds Lifecycle ##
All non-XRP currency balances (issuances) in the Ripple Consensus Ledger (RCL) are tied to accounting relationships between two Ripple addresses. When a financial institution uses Ripple's recommended separation of roles, funds relating to that institution tend to flow in a cycle.
[![Diagram: Funds flow from the issuing address to standby addresses, to operational addresses, to customer and partner addresses, and finally back to the issuing address.](img/funds_flow_diagram.png)](img/funds_flow_diagram.png)
Funds in the Ripple Consensus Ledger tend to flow in a cycle. When the issuing address sends payments, it creates balances in the accounting relationships in the Ripple Consensus Ledger. Within the RCL, users can exchange balances across different accounting relationships, so we use the term _issuances_ to describe any non-XRP balance. Issuances have positive value from the perspective of the customers, partners, operational addresses, and standby addresses. The same issuances are negative balances from the perspective of the issuing address, since they represent obligations. When the issuing address receives a payment, this reduces its obligations, effectively "destroying" the issuances that were sent.
When the issuing address sends payments, it creates balances in the accounting relationships in the Ripple Consensus Ledger. Within the RCL, users can exchange balances across different accounting relationships, so we use the term _issuances_ to describe any non-XRP balance. Issuances have negative value from the perspective of the issuing address, since they represent obligations. The same issuances have positive value from the perspective of the issuing address's counterparties. When the issuing address receives a payment, this reduces its obligations, erasing the issuances that were sent.
The issuing address sends issuances to a standby address, or directly to an operational address. The standby addresses send those issuances to operational addresses. Operational addresses send payments to liquidity providers or other customers and partners. Because all issuances are tied to accounting relationships with the issuing address, payments and exchanges of issuances "ripple through" the issuing address. The payment debits the sender's balance in its accounting relationship with the issuing address and credits the recipient's balance in the recipient's accounting relationship with the issuing address. The Ripple Consensus Ledger also supports more complicated [paths](concept-paths.html) that connect multiple issuers through order books and [liquidity providers who allow their funds to ripple](concept-noripple.html).
The issuing address sends issuances to a standby address, or directly to an operational address. The standby addresses send those issuances to operational addresses. Operational addresses send payments to other counterparties, such as liquidity providers, partners, and other customers. Because all issuances are tied to accounting relationships with the issuing address, payments and exchanges of issuances "ripple through" the issuing address. The payment debits the sender's balance in its accounting relationship with the issuing address and credits the recipient's balance in the recipient's accounting relationship with the issuing address. The Ripple Consensus Ledger also supports more complicated [paths](concept-paths.html) that connect multiple issuers through order books and [liquidity providers who allow their funds to ripple](concept-noripple.html).
## Issuing Address ##

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In the Ripple Consensus Ledger, financial institutions typically use multiple Ripple addresses to minimize the risk associated with a compromised secret key. Ripple strongly recommends the following separation of roles:
* One **issuing address**, also known as a "cold wallet." This address is the hub of the financial institution's accounting relationships in the ledger, but sends as few transactions as possible.
* One or more **operational addresses**, also known as "hot wallets." Automated, internet-connected systems use the secret keys to these addresses to conduct day-to-day business like transfers to customers and partners.
* Optional **standby addresses**, also known as "warm wallets." Trusted human operators use these addresses to transfer money to the operational addresses.

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content/tutorial-gateway-guide.md
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### Hot and Cold Wallets ###
We strongly recommend that gateways use multiple Ripple addresses with a separation of roles. This promotes strong security and minimizes risk. We recommend the following setup:
* An **issuing address** (also known as a "cold wallet") with high value, used as rarely as possible.
* One or more **operational addresses** (also known as a "hot wallets") with low value, used frequently by automated processes.
* Optional **standby addresses** (also known as "warm wallets"), used infrequently by human operators.
{% include 'snippets/issuing-and-operational-addresses-intro.md' %}
For more information, see [Issuing and Operational Addresses](concept-issuing-and-operational-addresses.html)

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tutorial-gateway-guide.html
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<li>Clearly publicize all your policies and fees.</li>
</ul>
<h3 id="hot-and-cold-wallets">Hot and Cold Wallets</h3>
<p>We strongly recommend that gateways use multiple Ripple addresses with a separation of roles. This promotes strong security and minimizes risk. We recommend the following setup:</p>
<p>In the Ripple Consensus Ledger, financial institutions typically use multiple Ripple addresses to minimize the risk associated with a compromised secret key. Ripple strongly recommends the following separation of roles:</p>
<ul>
<li>An <strong>issuing address</strong> (also known as a "cold wallet") with high value, used as rarely as possible.</li>
<li>One or more <strong>operational addresses</strong> (also known as a "hot wallets") with low value, used frequently by automated processes.</li>
<li>Optional <strong>standby addresses</strong> (also known as "warm wallets"), used infrequently by human operators.</li>
<li>One <strong>issuing address</strong>, also known as a "cold wallet." This address is the hub of the financial institution's accounting relationships in the ledger, but sends as few transactions as possible.</li>
<li>One or more <strong>operational addresses</strong>, also known as "hot wallets." Automated, internet-connected systems use the secret keys to these addresses to conduct day-to-day business like transfers to customers and partners.</li>
<li>Optional <strong>standby addresses</strong>, also known as "warm wallets." Trusted human operators use these addresses to transfer money to the operational addresses.</li>
</ul>
<p>For more information, see <a href="concept-issuing-and-operational-addresses.html">Issuing and Operational Addresses</a></p>
<h2 id="fees-and-revenue-sources">Fees and Revenue Sources</h2>