In an attempt to clarify all the questions that have been raised by the crypto community towards Ripple and XRP, Ran NeuNer, the CryptoManran quizzes Asheesh Birla, Senior Vice President, Product at Ripple on his CNBC program Crypto Trader. Some interesting insights flow in as the conversations invade topics that are crucial for the community to know.
Ran NeuNer settle the XRP debate
Ran NeuNer, who himself had said that he would throw XRP into garbage as it didn’t have a real utility on CNBC Fast Money, in his debate with Asheesh Birla tries to get answers for questions that have been raised quite a time on Ripple, XRP and the team as the suspense of XRP being a security still is unknown. The topics discussed included – Is XRP decentralized? – Are any of the developers of the XRP ledger associated with Ripple.- Is there a use case for the token? – Can there be scarcity? And is it only Ripple building on XRP.
I settle the XRP debate once and for all with @ashgoblue.
– Is XRP decentralized?
– Are any of th developers of the XRP ledger associated with Ripple.
– Is there a use case for the token?
– Can there be scarcity?
– is it only Ripple building on XRP.https://t.co/YMvQruHbJx
— Ran NeuNer (@cryptomanran) August 24, 2018
Asheesh Birla on being asked on relationship between XRP and Ripple corporation, he candidly said Ripple is a for-profit company which builds enterprise software grade products for financial institutions around the world whereas XRP is a digital asset and Ripple Inc holds a good amount of the digital asset but they are different as Ripple is just one of the software developers of the Ripple open ledger that is decentralised and available for use to anyone.
One being asked whether any of the founders of the XRP ledger connected or associated with Ripple in any way, Asheesh said that David Schwartz is currently the CTO is a common link between the two as he is a mentor to employees at Ripple and has been a fundamental guy who has not just architectured the XRP products but also the original XRP ledger
Clarifying whether XRP is decentralized or not, Asheesh said that XRP ledger is decentralized and Ripple has plans of further decentralizing it. As XRP doesn’t have a mining system it has validators around the world that validate the transaction. He also said Ripple Inc holds around 10 validators in-house among 100s that are globally present and Ripple has further plants to decentralize these validators as well
He further in the interview gives an example of how the products like Xrapin and Xcurrent work and are changing the way financial institutions transfer information and money globally. He also says XRP token is necessary to give spend to the transaction and hence replacing it with USD would just slow down the process.
XRP clarifications still need some weight for the community to accept it as decentralized
This is not the first time XRP’s executive has come to clarify their stance of being decentralized. In July David Schwartz in UNCHAIN Convention, explained 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 alike He had also said 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.
Schwartz recently also published a new report entitled “The Inherently Decentralized Nature of XRP Ledger” in which he describes the notion of centralization in the blockchain world as “wildly nuanced, misunderstood and, frankly, evolving.” He is apparently trying to set the record straight once and for all for the issue of XRP’s decentralization. In the report, he states that
“Put simply, the XRP Ledger is based on an inherently decentralized, democratic, consensus mechanism — which no one party can control.”
XRP and Ripple team have been pushing and explaining the XRP is decentralized and not a security but still every time a new question is raised on their centralization aspects be it coins or validators. It is believed only once SEC clears its stance on XRP being a security or not will bring an end to this debate.
Do you think XRP is a security or not? Do let us know your views n the same.
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Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com