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Ripple CTO Reveals Truth About XRP Ledger's Alleged Centralization

Sun, 04/30/2023 - 10:46
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Gamza Khanzadaev
David Schwartz discredits assertions about centralization of XRPL
Ripple CTO Reveals Truth About XRP Ledger's Alleged Centralization
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Ripple CTO David Schwartz has once again defended the decentralized nature of XRP Ledger amid criticism from Justin Bons, founder of Cyber Capital. As reported by U.Today, Bons had claimed that XRP, as well as Binance Coin (BNB) and Stellar Lumens (XLM), are centralized due to their permissioned blockchain architecture.

Bitcoin and XRP Are Centralized, Crypto Executive Says

Schwartz countered by stating that XRPL achieves the same level of decentralization as proof-of-work (PoW) blockchains, but in a different manner. He explained that XRPL has no special authority to change rules, and transactions cannot be censored for more than a brief period of time. Additionally, XRP Ledger uses consensus to decide which transactions should be included in a block, which Schwartz believes is more decentralized than a PoW system, where a single person can decide which transactions are included in a block.

Furthermore, Schwartz emphasized that XRPL is cheaper to operate than PoW or proof-of-stake (PoS) systems, as there is no need to pay for the energy consumption of miners. He also highlighted that no single entity has any special right to receive rewards or control transaction flow on XRP Ledger, which contributes to better decentralization.

XRP Centralization Debate: Former Ripple Exec Fires Back at Detractor

This is not the first time that XRPL has faced criticism regarding its decentralization. However, Schwartz's response provides a clear explanation of how XRP Ledger achieves decentralization and how it differs from other blockchain architectures.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.