Since taking over the helm as Ripple's Chief Technology Officer, David Schwartz has continued to embody what it means to love blockchain and XRP technology. Mr. Schwartz can be found on Twitter by answering questions about Ripple technology and the future direction of the project.
It is no wonder that Cory Johnson (Ripple Chief Market Strategist), during a recent Ask Me Anything session with Brad Garlginhouse, described his activities on twitter as a guarantee of a new title of Chief Tweeter . David Schwartz also went ahead and published a post on the Ripple website that shows the inherent decentralization of the XRP register.
XRP Ledger More decentralized than BTC or ETH
In the post, Mr. Schwartz explains that:
Bitcoin and Ethereum are currently considered the gold standard for decentralization …
Since these blockchains they are considered decentralized, therefore by design, even the XRP Ledger is, if not more, decentralized compared to Bitcoin and Ethereum.
goes on to describe the Bitcoin and the Ethereum Job Test, it is a good starting point for a decentralized system giving incentives to miners to validate transactions. But over time, blockchains on the proof-of-work system may be subject to centralized control where some miners have significant control over the system.
He continues by explaining that the XRP register does the opposite. Explain that:
XRP Ledger uses a consent protocol that is based on the majority of validators to record and verify transactions without encouraging anyone (this is one of the main reasons why I started working on XRP Ledger for more than six years does). Validators are different from miners because they are not paid when ordering and validating transactions.
He continues by concluding the above argument by stating:
Put simply, the XRP is based on an intrinsically decentralized, democratic system, a consensus mechanism – that no party can control.
As far as transaction costs are concerned, the miners of the BTC and ETH networks want them to rise so that they can get more in terms of rewards for transaction validation. According to Schwartz, this behavior drives up the cost of each transaction by making the digital asset less attractive for real-world use cases such as payments.
Explain how the XRP led register is different as follows:
XRP Ledger encourages the opposite behavior. Those who use XRP and XRP Ledger are able to make progress without extracting resources, saving significant time and computing power. Furthermore, an integrated system, called tax escalation, is part of its consent protocol and helps to regulate taxes in general. This means lower costs and faster transaction times for XRP than other digital assets – the attributes that make it the most useful asset for liquidation.
In the final part of his post, he states that with Bitcoin and Ethereum, a small number of miners can conspire to destroy the system. This is due to the fact that 4 mining groups control 58% of the Bitcoin network and 3 miners represent 57% of Ethereum's capacity . He also pointed out that 80% of all Bitcoin mining is in China : a country that has banned cryptocurrencies. All these factors put the BTC and ETH at risk of manipulation and interruption by a government (in the case of BTC).
Schwartz pointed out that 80% of all validators on the XRP register are required on the entire network for a period of 2 weeks to continuously support a change before it is applied. Of the approximately 150 validators, Ripple runs only 10: a much lower percentage to impose a change on the network.
In conclusion David Schwartz showed that the XRP register is actually more decentralized than those of Bitcoin and Ethereum. Perhaps over time, the crypto-community will realize that XRP is the eof of the fastest and most reliable digital resources in circulation. The proof of this can be seen with Weiss evaluations announcing that XRP is the best digital resource to use when transferring funds through exchanges.
Disclaimer: this article does not provide financial advice. Any opinion here should be taken as well as it is. Perform your research before investing in one of the many cryptocurrencies available.