Director of Developer Relations at Ripple, Matt Hamilton, set the document straight on XRP and the XRP Ledger.
Earlier than the SEC vs. Ripple lawsuit, the narrative surrounding XRP centered round it not being a “actual” cryptocurrency. This is because of a number of traits; chief amongst them had been criticisms over the community’s “closed” centralized nodes.
This resulted in persistent hostility between XRP holders and the remainder of the crypto neighborhood. Quick ahead to now, and whereas the SEC lawsuit continues to dominate the dialog, the above nonetheless lurks behind individuals’s minds.
However is there any reality to the matter?
Can XRP transactions be restricted?
In an interview with the Crypto Jebb YouTube channel, Hamilton offers his account of the numerous speaking factors to dispel Ripple myths.
Hamilton mentioned the phrases centralization and decentralization imply various things to totally different individuals. Because of this the neighborhood can not agree on XRP’s standing as a centralized or decentralized community.
However for him, decentralized means the flexibility for anybody to make use of the community with out restriction. So, for instance, Hamilton mentioned no get together may cease XRP customers from transacting on the community if they want.
“The important thing standards one is you don’t need any individual to dam you, or censor you, or limit you from utilizing the community, proper? I need to have the ability to make a cost with out, you already know, regardless. In that regard the XRP Ledger is decentralized.”
He added that nobody can seize XRP tokens, and transactions can’t be censored, which, in his thoughts, is a vital measure of decentralization.
Ripple doesn’t management the XRP community
One other bone of rivalry pertains to the centralization of nodes on the XRP Ledger. A node connects to the community to validate and relay transactions whereas additionally retaining a duplicate of the ledger.
Full nodes guarantee a specific algorithm are being adopted. The hazard right here pertains to a dominant entity, with majority node management, manipulating the community.
The XRP ledger at the moment has 156 validator nodes, of which 19 are identifiable as Ripple nodes, which means Ripple controls 12% of the nodes.
Hamilton confirms this by saying, Ripple nodes make up solely a small share of the community. What’s extra, he provides that 80% consensus is required to validate transactions. Due to this fact Ripple can not manipulate the community.
“The community itself is decentralized. Ripple solely controls a number of p.c of the nodes on the community. And the consensus algorithm means you want 80% consensus on the transactions. So there’s no unilateral get together that controls it.”
To spherical off the controversy, Hamilton mentioned though Ripple does maintain many of the XRP, as a”trust-based” consensus algorithm, as a substitute of a proof-of-stake mannequin, the quantity of XRP held has no bearing on the quantity of management exerted.
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