Ripple CEO Brad Garlinghouse in AMA discusses XRP being not a security at all and institutional money to soon enter aggressively as railroads are laid down. Talking about Bakkt being a big deal and a sign of maturing industry, he further elaborates on xRapid, Swell conference, and more.
XRP is not at all a security
Brad Garlinghouse, the CEO of Ripple yesterday had an Ask Me Anything (AMA) hosted by the Chief Market Strategist of Ripple Cory Johnson. Brad discussed a lot of topics that gave an insight as what is coming for Ripple and its products and the whole crypto market in general.
Talking about the security aspect, he stated it is a good thing that US SEC has said Bitcoin and Ether are not securities. Coming onto the XRP, he illustrated how recently Abu Dhabi Global Market, (ADGM) came out and clearly said that XRP is not a security.
As for XRP being not decentralized, according to him, there is a lot of misinformation around this. He said the blog post shared by Ripple CTO, David Schwartz is profound and powerful in explaining this who believes XRP is far more decentralized than Bitcoin and Ethereum.
David Schwartz has shared,
“With Bitcoin and Ethereum, a surprisingly small number of miners could collude to disrupt the system. As of today, four mining groups currently control 58 percent of the Bitcoin network and three miners account for 57 percent of Ethereum’s daily capacity. Further, 80 percent of the mining on the Bitcoin blockchain is centralized in China, despite the country’s ban on digital assets. This puts it at greater risk of being manipulated by a single, sovereign government.”
While “In contrast, the XRP Ledger requires 80 percent of validators on the entire network, over a two-week period, to continuously support a change before it is applied. Of the approximately 150 validators today, Ripple runs only 10.”
Institution money, XRP, xRapid & more
Starting with the institutional money, Brad shared the industry has underperformed in terms of institutional interest and for good reasons i.e. lack of regulatory clarity. But the coming years will see aggressive participation as the railroads are already laid down.
Though he expected more, he mentioned the new exchange championed by ICE, Bakkt which according to him, is a big deal and indicative of a maturing crypto industry.
Discussing crypto custody solutions, he believes it will start with small players before big ones enter the market. It is a possibility these traditional custodians will get into a partnership with small players.
As for XRP development, Q1 saw one new product contract (client) addition per week while Q2 two additions per week, and now Q3 he says will definitely be seeing a record number. Moving onto its another highly anticipated product, xRapid is expected to be officially launched before the end of 2018. The target market for this product is less efficient payment corridors like US-Mexico.
Moreover, 25 universities will be participating in the University Blockchain Research Initiative (UBRI) of Ripple. Additionally, the upcoming Swell conference on October 1 and 2 having former US President Bill Clinton as the keynote speaker will give the Ripple customers a chance to talk to each other.