Ripple Labs CTO David Schwartz just waded into the subject regarding the decentralization of XRP as an asset
Ripple and its XRP Ledger (XRPL), long celebrated for its speed and efficiency, has become the focus of a fresh debate about decentralization in the blockchain space.Â
In a recent X post, blockchain researcher Justin Bons argued that XRPL has deviated from crypto’s decentralization principles, calling it a centralized, permissioned system. Ripple’s CTO, David Schwartz, strongly disagreed, defending the network as a misunderstood innovator in decentralization.
Other node operators can choose to ignore that node. Consensus automatically ignores nodes that don’t appear to be following the rules at the node level. Validation can ignore (not wait for) missing nodes at the network level.
— David “JoelKatz” Schwartz (@JoelKatz) December 3, 2024
In his post, Justin Bons did not mince words when he accused XRP of relying on a framework that he equates to Proof of Authority (PoA). The XRP Ledger’s use of Unique Node Lists (UNLs) is central to his critique. According to Bons, this places too much control in the hands of Ripple.
The blockchain researcher accused the Ripple Foundation of effectively overseeing the network through its ability to dictate changes to UNLs. Validators must have 90% agreement on UNL configurations to prevent forks, which Bons argues weakens decentralization.Â
He also criticizes the lack of incentives for validators, saying it goes against blockchain’s core principles of trustlessness and open access.
Ripple CTO Defends XRP’s Blockchain IntegrityÂ
In his X post, Ripple’s David Schwartz did not deny that XRP operates differently from other blockchains. However, he rejected the notion that different equals are centralized. Schwartz explained that validators only handle short-term transaction ordering, and being unpaid prevents monetary dominance.
Schwartz argued that XRP prioritizes fair transactions over the wealth dominance found in proof-of-work (PoW) systems. He pointed to XRP’s transparent public ledger and user control over system rules as key to its decentralization. He emphasized that true decentralization also means open access and autonomy.
At its core, this debate is not just about Ripple only. It reflects a deeper divide in blockchain philosophy. Critics like Bons favor PoW and PoS for using economic incentives and market-based trust. Ripple, however, focuses on energy efficiency and transaction speed over traditional crypto-economic models.
Ripple Labs has been focused on expanding the XRP ecosystem and its influence on the global market. In September, the XRP Ledger activated a key update on the mainnet to improve its features. This update enhances the platform’s Automated Market Maker (AMM) functionality. The goal is to foster innovation and provide more capabilities within the XRP ecosystem.
The recent upgrades and developments in the XRP ecosystem are having a significant positive impact on the asset’s market outlook. With new features like AMM, XRP is becoming a more efficient platform, likely attracting more users and investors.Â
This growing functionality is contributing to XRP’s strong market performance. Recently, its price surged over 90% in the past week, indicating a shift toward increased investor confidence. Also, XRP has benefitted from the ongoing bull market cycle.Â
Last month, the digital asset’s price surpassed $1 and outpaced Dogecoin (DOGE). Currently, XRP is trading at $2.625, down 3.79% in the last 24 hours, per CoinMarketCap data. Crypto analysts like Brett are predicting further price rallies if historical trends align.
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