Ripple CTO Says XRP Ledger is Completely Decentralized
Ripple Labs, Inc. has long been on the defensive against claims from cryptocurrency pundits and investors who believe that its native token, XRP, will be viewed as a security by the U.S. Securities and Exchange Commission (SEC) due to its seemingly centralized design.
However, Ripple’s Chief Technology Officer David Schwartz aims to set the record straight about XRP’s “inherently decentralized nature.” Decentralization by definition is the “dispersion or distribution of functions and powers,” according to the Merriam-Webster dictionary.However, in the cryptocurrency space, what it means to be decentralized is less clear, and as David Schwartz says in the opening of his new report, “is wildly nuanced, misunderstood and, frankly, evolving.” In the report, titled “The Inherently Decentralized Nature of XRP Ledger,” Schwartz attempts to clear up some of the confusion around the decentralization of XRP.Unlike Bitcoin and Ethereum that use proof-of-work algorithms, thus rewarding miners for validating transactions, XRP uses a consensus protocol that requires validators to record and verify transactions without any incentive. Schwartz says these validators are spread all across the globe and are comprised of a range of individuals, institutions, and cryptocurrency exchanges.
About Ripple's (XRP): Built for enterprise use, XRP offers banks and payment providers a reliable, on-demand option to source liquidity for cross-border payments. Using XRP, banks can source liquidity on demand in real time without having to pre-fund nostro accounts. Payment Providers use XRP to expand reach into new markets, lower foreign exchange costs and provide faster payment settlement. XRP consistently handles 1,500 transactions per second, 24x7, and can scale to handle the same throughput as Visa. XRP's five-year track record of stable technology and governance makes it ready for institutional and enterprise use.