Ripple Developers: Decentralization Key to Success of Crypto IndustryJun 04, 2018 at 22:00
Amid debates whether Ripple’s network and its XRP token is functioning as a decentralized system, its co-founder as well as its chief cryptographer reiterated their views that decentralization is the best route for cryptocurrencies.
In an interview with CNBC, Ripple co-founder, Jed McCaleb reiterated his stand that cryptocurrencies and the blockchain technology in general, should have a decentralized network in order to achieve a long-term success.
“The real vision is that you have a network, much like the internet, that anyone can participate in,” he stated.
The official who also co-founded Stellar defended his stand citing that use of a centralized financial payment network will result in “a system that is no better than SWIFT or PayPal.”
“The real vision is that you have a network, much like the internet, that anyone can participate in. There’s not one central entity that can decide that it’s going to start charging. This is the way this thing can actually grow and reach ubiquity. That’s the key thing to make these things successful,” McCaleb expressed.
It can be recalled that he dropped out from the Ripple team to form Stellar in 2014 because of clashing views in how the system should be run.
“What we’re trying to build at Stellar is an internet-level protocol. Its important that it is done by a nonprofit entity. If you imagine an internet created by a for-profit company, it would just be a very different world,” the official added.
He also mentioned that in running Stellar, they make sure that its investor base will not be revolving around a few participants.
On the other hand, in a video released by the Ripple team, its chief cryptographer, David Schwartz emphasized that their main focus for the network this year is to further improve its decentralized functions.
“One of my top priorities in 2018 is improving the decentralization of XRP ledger, throughout 2018 we will be adding additional validators and you will have to see landmarks where the network will be increasingly independent of Ripple’s operations,” he claimed.
He also mentioned that at present, concerns of decentralization is rooted from questions whether if there is only one party that can determine rules and can stop the system at their own will.
“A lot of people are concerned that Ripple might be able to create more XRP, but the protocol does not have any way to say “hey I got a whole bunch of XRP just don’t ask me where it came from.” The transaction rules are deterministic, the software is open source and there is no way it can create XRP,” Schwartz emphasized.
The official also clarified that Ripple currently holds about 60 billion XRP that is equivalent to 60 percent of all the XRP that will ever exist and another 55 billion XRP have been locked in an escrow to be released in 55 months.
“What we don’t use at the end of every month will be returned to an escrow adding in a new month and because those escrows are public on a ledger, that also provides additional level of transparency as they can see how much XRP is returned each month,” he expressed.
As of this writing, Ripple is the third largest cryptocurrency with a value of $0.6495 per XRP and a market cap of $25,489,097,665.