David Schwartz, Chief Cryptographer at Ripple, presented on Enabling the Internet of Value before answering a few queries on Ripple and XRP.
UNCHAIN Convention, 2-day conference featuring the world‘s leading cryptocurrency and blockchain experts and entrepreneurs, recently released a video of David Schwartz, who made a presentation on Enabling the Internet of Value explaining Ripple’s and XRP’s role in it. He also gave a few candid replies to questions asked by attendees giving insights on how Ripple and XRP have and are putting things together.
Ripple enabling the internet of value
In his presentation, David spoke about how every technology started with a singular model and then based on use cases it transformed itself to fit in. According to him this what is happening with cryptocurrencies. It all began with the Bitcoin but, now as the use case is increasing we have over 1300 coins providing different utility to different customers.
He believes that whatever the use case may be its root of it is payments, and Good payments make all of these use cases easier and that’s why ripple comes in ripples been working on this payment use case which is practically delivering tools the enables internet of value.
This presentation was followed by question and answers and David put his best of knowledge and oratory skills explaining about it. A few of the topics which were touched by David through his answers were.
David Schwartz on the centralization aspect of Ripple
David mentioned that Ripple as a company is not decentralized, it’s the XRP ledger which Ripple doesn’t have any legal right to control it. The code that controls how the ledger runs is run by the exchanges, power users wallet operators like.
Ripple doesn’t have the ability to put codes on someone else computer. He believes that the Centralization of criticism comes from the fact that Ripple holds a large part of XRP. According to him, it is necessary to hold those coins as it helps Ripple pursue use cases which is necessary to work the revenue model.
“He also mentioned that Ripple is working with regulators so that the can meet policymakers and explain them the usability of the technology as Ripple believes working with existing organizations could add to value addition of the XRP.”
Freeze function of XRP ledger
On being asked about the XRP ledger’s freeze function which Bitstamp used on the XRP ledger in 2014-15, David replied that XRP ledger has a freeze feature for assets other than XRP. Using the example of Bitstamp, he mentioned that the ledger then had a dispute over the ownership of some of the funds and Bitstamp made the decision to freeze those funds on the ledger. According to him, most digitized or collateralized fiat assets on the ledger are freezable by their issuer so it’s the issuer of that asset that can freeze it. And as XRP is not issued by anyone, so nobody can actually freeze it.
Distribution on XRP
David did explain how XRP were distributed in the past and are being done now. He said that the XRP that will ever be existed in the Genesis Ledger and was divided amongst the original founders. 80% of the coins was gifted to a company that eventually became Ripple and approximately 20% was kept with the founders. A significant part of that 20% has been donated to charity.
Out of the 80% that is with Ripple, a big fraction of it is kept in an escrow account on the ledger. David mentioned that the escrow account releases a billion XRP every month which is used by Ripple to build the XRP ecosystem and to fund itself and whatever is left at the end of the month is added back to the escrow account. According to him originally there were 55 months of escrow and now there are approximately 3 months of escrow left.
Ripple also publishes a sort of market summary every quarter explaining how XRP’s have been used providing the needed transparency.
David, upon being asked, also said that there are no different XRP for different use cases. It just the way the coin is being used. Also, he mentioned that Ripple has no plans of entering retail facing products as many other coins are competing to get into.
He did discuss some other topics which can be found on UNCHAIN conventions Youtube channel.
“With the way David explained, Ripple seems to be really making strides to be adopted as a mainstream payment system. The technology seems near flawless and a great vision makes Ripple unbeatable in years to come.”
Will Ripple enable to change the way we make and receive payments? Do let us know your views on the same.
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Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Nilesh Maurya has been associated for past 8 years as an Investment Banker with Omega Capital, a bespoke Investment Banking outfit having offices in Mumbai, New York, Singapore, and Dubai. He has been a regular contributor to business publications such as Business India and Market Express and has been a mentor to many start-up companies. Follow him on Twitter at @KoinKing1 or connect with me on linkedin.