One of the most important characteristics of XRP is decentralization. Ripple owns the larger share of the XRP supply but the CTO David Schwartz thinks that the company doesn’t have the major role in the game. In our alt coin news today we read more about his opinion.
Chief Technology Officer David Schwartz responded on Quora whether XRP is controlled by Ripple. He answered:
“Absolutely not. The XRP Ledger is open source technology with a robust community of developers, so if Ripple were to vanish, XRP and the XRP Ledger will remain.”
His main point is that XRP is separate from ripple because of three elements: utility, ownership, and decentralization. XRP can fuel payments without any other Ripple product. Also, investors who hold XRP don’t own equity in Ripple. Most importantly, Ripple only runs about 10 validators that authenticate the transactions on the ledger.
Schwartz says that by dumping the XRP supply on the market would be bad for investors but that could also hurt Ripple as well. When he was asked about Stellar’s partnership with IBM, Schwartz answered without a doubt:
“It misses the point of blockchain completely.”
The CTO also explains how industry giants such as IBM are trying hard to innovate a product around blockchain. However, they cannot solve the issue around centralization. Schwartz was a member of the three people who created XRP in 2011 but this doesn’t mean he cannot criticize it. He expressed his disapproval of centralized stablecoins for bank transactions saying that USD-backed stablecoins cannot ever achieve mass adoption. IBM also announced the new addition of six international banks that will use the Stellar blockchain. Of course, Ripple now has to downpay their products so they can be able to compete with Stellar.
The Ripple CTO pointed out that market volatility is a major issue for every cryptocurrency by saying:
“Certainly there are a lot of bad ideas being built around cryptocurrency and it’s possible the market is reflecting the recognition of this reality.”
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