Ripple CTO David Schwartz Says XRP Is More Decentralized Than Bitcoin And Ethereum

Ripple Labs has been defending its native token XRP against accusations of being a security for quite a while now. More investors are confident that the SEC will view XRP as a security due to its seemingly centralized design.

Ripple’s Chief Technology Officer David Schwartz seems to have had enough of this and wanted to set things straight once and for all.

Addressing the subject of decentralization

By definition, decentralization means the “dispersion or distribution of functions and powers.” In the cryptosphere, however, it’s less clear what it means to be decentralized.

David Schwartz says in the opening of his new report that the term “is wildly nuanced, misunderstood and, frankly, evolving.”

In his report, titled “The Inherently Decentralized Nature of XRP Ledger,” he tries to clear up some of the confusion around the decentralization of XRP.

XRP XRP security status yet not confirmed Ripple adopted a wrong regulatory approach 696x449 - Ripple CTO David Schwartz Says XRP Is More Decentralized Than Bitcoin And Ethereum

Bitcoin and Ethereum use proof-of-work algorithms and reward miners for validating transactions, and XRP uses a consensus protocol that requires validators to record and verify transactions without any incentive.

According to Schwartz, these validators are spread all over the world and comprised in more individuals, crypto exchanges and institutions.

“Put simply, the XRP Ledger is based on an inherently decentralized, democratic, consensus mechanism — which no one party can control,” Schwartz explains.

Brad Garlinghouse, the CEO of Ripple, showed his approval of Schwartz’s post on Twitter and promised even more data regarding the issue during his Ask Me Anything session.

XRP is more decentralized than Bitcoin and Ethereum

Schwartz says that both Bitcoin and Ethereum are less decentralized compared to Ripple‘s XRP because Bitcoin has four large mining pools which control 58% of BTC and Ethereum has three large mining pools that control 57% of ETH.

And considering that acft that the SEC said that neither Bitcoin nor Ethereum are securities due to the lack of a central governing organization that controls them, it would be fair that XRP is classified as non-security as well.

Schwartz continues and explains that the most critical reason XRP is “decentralized in nature,” is the fact that users on the XRP ledger select a Unique Node List (UNL) which is a list of trusted validators chosen by the user.

Users are free to choose and even change their UNLs, and this means that the XRP ledger “is and always has been inherently decentralized.” according to Schwartz.

We’ll probably hear/read more about this controversial subject in the future as well.


People Mentioned

Brad Garlinghouse
Brad Garlinghouse

Garlinghouse is both the CEO and Chairman of Ripple Labs. This year, Ripple surpassed 300 partners, including over 115 banks worldwide. Having launched On-Demand Liquidity (ODL) for cross-border payments, Ripple now has more than 20 partners using XRP for ODL, including Moneygram, Western Union, and American Express.

Trending news

Top Exchanges
Icon
CEX.IO

3

Website

Icon
Coinbase

2

Website

Icon
Binance

1

Website

Top Casinos
Icon
7bitcasino

4.20

Website

Icon
BitStarz

5

Website

Icon
FortuneJack

4.55

Website

Top Sportsbook
Icon
1xBit

4.03

Website

Icon
Nitrogen Sports

4.73

Website

Icon
SportBet.io

4.60

Website

Andreas Townsend Author

I am a technical writer, author and blogger since 2005. An industry watcher that stays on top of the latest features, extremely passionate about finance news and everything related to crypto.

1887 Articles

Top Exchanges
Icon
CEX.IO

3

Website

Icon
Coinbase

2

Website

Icon
Binance

1

Website

Top Casinos
Icon
7bitcasino

4.20

Website

Icon
BitStarz

4.93

Website

Icon
FortuneJack

4.90

Website

Top Sportsbook
Icon
1xBit

4.03

Website

Icon
Nitrogen Sports

4.73

Website

Icon
SportBet.io

4.60

Website

Trending news