Ripple’s CEO Brad Garlinghouse to Speak at Disrupt SF 2018
Brad Garlinghouse, the CEO of Ripple is all set to speak at the annual TechCrunch event, Disrupt which is being held in San Francisco from September 5 to September 7.
Among the speakers are some of the most reputed names in the tech industry such as Priscilla Chan, the co-founder of Chan Zuckerberg Initiative, Jina Choi, the Regional Director of U.S. Securities and Exchange Commission, and Martin Chavez, the Chief Financial Officer of Goldman Sachs.
Ripple has been going out on different platforms to promote itself and to show people how useful it really is. There has been quite a lot of speculation about whether Ripple is decentralized or not. The Chief Technology Officer of Ripple, David Schwartz, spoke about how decentralized Ripple is here.
In the blog, he compared Ripple with Ethereum by saying:
Bitcoin and Ethereum use proof-of-work algorithms. This system rewards individuals, known as “miners,” for validating transactions by paying a fee for their work. This was a great starting point for a decentralized system that incentivizes complete strangers to contribute to the greater good of a network and make forward progress. But as time has gone on, clear limitations have manifested. Blockchains that use proof-of-work can be subject to centralized control, where a few miners have significant control over the system.
The XRP Ledger uses a consensus protocol that relies on a majority of validators to record and verify transactions without incentivizing any one party (this is one of the main reasons why I began working on XRP Ledger more than six years ago). Validators are different from miners because they aren’t paid when they order and validate transactions. Today, these validators operate at locations across the globe and are run by a broad range of individuals, institutions, asset exchanges and more.
Put simply, the XRP Ledger is based on an inherently decentralized, democratic, consensus mechanism — which no one party can control.
Comparing it to Ethereum gave people a little more clarity about how the cryptocurrency works. But that wasn’t all.
He then went ahead and talked about the transaction costs involved. He said:
Inherently, miners for Bitcoin and Ethereum want the cost of transactions on the ledger to be high to increase the reward they receive. This behavior drives up the cost of each transaction, rendering the digital asset less attractive for real-world use cases like payments.
This was not so apparent in the early days of Bitcoin because transaction fees were dwarfed by the block reward. However, as the block reward drops, the interests of miners and other users will likely continue to diverge. Users cannot ignore the desires of miners because a blockchain based on proof-of-work that cannot incentivize enough mining cannot remain secure.
The XRP Ledger encourages the opposite behavior. Those using XRP and the XRP Ledger are able to make progress without mining, saving significant compute power and time. Also, a built-in system, called fee escalation, is part of its consensus protocol and helps to regulate fees overall. This means lower costs and faster transaction times for XRP compared to other digital assets — the attributes that make it the most useful asset for settlement.
He then went ahead and talked about the concentration of control as well as the decentralized nature of the cryptocurrency. This eliminated any lingering doubts which people had in their minds about the cryptocurrency.
Coming from someone who has been in the blockchain and digital asset space for more than a decade—someone whose career has been mainly focused on the technology which made Bitcoin possible—people have reasons to believe him.