Ripple CEO Brad Garlinghouse made headlines last week for holding an AMA. That AMA has been criticized, however, for revealing little interesting information about the secret society.
"Cross: ask me anything, but I can not tell you anything," explains Mark Rogowsky in a blog post after last week's Ripple AMA. "The cryptic crypt company eludes difficult questions."
Ripple is a private company known for its XRP digital token. Ripple is looking to work with financial institutions – including some of the world's largest banks – to provide blockchain technology. The controversy on Ripple concerns the connections to XRP. There are controversies over whether XRP is considered a security security, for example.
There are also controversies about Ripple control over XRP. Ripple – the company – holds billions of XRP tokens. In fact, they hold about 60% of all XRP in the world – or 60 billion tokens. One can also expect that the value of XRP increases as the value of Ripple increases – the company.
The problem with Ripple and XRP is that the company periodically sells XRP to finance itself and build its war chest. The company has a stock of XRP that is gradually selling off. The big question for investors is: what happens when that stock runs out?
Ripple CEO Brad Garlinghouse answered these questions in his AMA? Let's have a look.
The Brad Garlinghouse AMA
On 22 August, Ripple's CEO, Brad Garlinghouse, participated in "Ask Me Anything", or AMA. AMA was led by former Bloomberg journalist Cory Johnson. Although Johnson worked for Bloomberg, he now works as Ripple Chief Marketing Strategist.
People have criticized AMA right away. The point of an AMA must be "asked for anything" by an audience of users. With Ripple AMA, the questions were pre-filtered and pre-selected, then asked by the company's marketing team. It is not a "true" AMA.
The AMA went as planned. Softball questions were launched and Ripple avoided answering difficult or controversial questions about the company. However, AMA deeply immersed itself in the Ripple connection technique with XRP.
Some of the highlights of the AMA included:
- Garlinghouse mentioned a Ripple CTO statement David Schwartz, who wrote a post titled "The Inherently Decentralized Nature by XRP Ledger." In that post, Schwartz tries to assert that XRP is not controlled by Ripple. He also states that Ethereum and bitcoin, despite being "the gold standards" for decentralization, are much more concentrated than XRP.
- To justify his claim that ETH and BTC are more centralized than XRP, Brad Garlinghouse and Schwartz mention that a handful of mining wells have a big influence on bitcoin.
- It has also been said that the control of the XRP register requires 80% of the so-called validators on the network to support the change in two weeks. Ripple only checks 10 of the 150 validators, which means it has no special influence on the network.
- However, Rogowsky states that Ripple still has some control over the validators on the network. "Now, you have to gain the trust of other validators, but the process to do this is mainly recognizable and powerful.From the almost unlimited resources and credibility of Ripple as an XRP validator, it could certainly quickly implement additional validators." You can view the procedure for become a validator on the Ripple network here.
- Ripple also has influence on the selection of the validator because users on the Led XRP register select a "Unique Node List", or UNL, which is a list of validators trusted by that user to sort the transactions. The network has a number of recommended UNLs, including a list created by Ripple itself. Users can choose the one they prefer or create their own. But let's be honest: if users are given the chance to create their own list of validators or use the list provided by a centralized authority, most users will choose the list of centralized permissions.
- At 7:05 pm, Garlinghouse is questioned on her socks
Ultimately, Rogowsky sums up Ripple's AMA with this:
"After all, if you had a machine that could print money, you would not go At almost no length to protect it, we will try to send a similar question to the next AMA Ripple, perhaps they will not find it too "bad" and will give us a direct answer. "
AMA was not as soft as many had expected , but Ripple also avoided some difficult questions. Garlinghouse has spent much of the AMA trying to convince people that XRP is a decentralized digital token and that the Ripple company has limited control over the network. However, Ripple continues to be the largest holder in the XRP world. As long as they sell that XRP and continue to report XRP sales as a significant part of the company's revenue, there will be disputes over Ripple connections with XRP.