Ripple’s CEO’s views at the August ‘Ask Me Anything’
In the August edition of Ripple’s Ask Me Anything, Cory Johnson, the Chief Marketing Strategist interviewed Ripple’s CEO, Brad Garlinghouse. The AMA covered a lot of topics including things such as Brad’s views on how the general cryptocurrency industry is performing and blockchain digital asset industry in this year. He also talked about XRP specifically.
One of the major debates in the crypto sphere right now is whether cryptocurrencies like Bitcoin and Ethereum are securities or not. Brad revealed that he shares the SEC’s views that these cryptocurrencies aren’t securities. Talking about Ripple’s XRP specifically, he referred to the Abu Dhabi Global Market (ADGM) and how that doesn’t consider XRP as a security.
Next, he answered the question ‘Is XRP decentralized?’ To this, he stated that XRP is more decentralized than it is generally assumed to be. He further mentioned that Ripple’s CTO David Schwartz wrote a recent report titled ‘The Inherently Decentralized Nature of XRP Ledger’ that clarifies XRP’s status as a decentralized token.
This report states that Bitcoin and Ethereum utilize proof-of-work algorithms and reward miners for validating transactions. XRP, on the other hand, uses a consensus protocol for validators to record and verify transactions without an incentive. Schwartz explains that these validators are spread across the world and as a result, a lot of individuals, cryptocurrency exchanges and institutions are involved.
Schwartz stated in the report
Put simply, the XRP Ledger is based on an inherently decentralized, democratic, consensus mechanism — which no one party can control.
Brad also talked about institutional investment and the scope it carries. He expressed that there is a lack of regularity clarity because of the underperformance in institutional interest. However, Bakkt, the new exchange by ICE is a ray of hope for institutional investment. He stated,
I thought 2018 would be a year where the institutions would really get involved in a big way in crypto and I think in some ways the industry has underperformed where I would have predicted. And some of the reasons are institutional custody of digital assets are quite not where it has to be to really at scale address the issue and the regulatory questions that have emerged in the course of 2018 has probably slowed things down.
About Bakkt, he said specifically,
A lot of people thought 2018 was the year of the institution, there are certainly examples of institutions coming in, Bakkt a new exchange being championed by ICE which owns New York Stock Exchange but I thought 2018 probably would have seen more.
Then, he also spoke about Ripple’s development by dividing it into quarters. Quarter one experienced at least one client addition per week. Quarter two had an addition of at least 2 clients a week and Quarter three is expected to experience even more growth in the number of clients added. Brad attributed this growth to the value associated with Ripple’s current network. He explained,
The value of the network is equal to the square of the nodes of the network, Metcalfe’s law. The value of the network is becoming more valuable so we have more customers plugging in and more customers getting excited about joining that journey.
@DiepSteven, a Twitter user and XRP enthusiast stated that this future growth prospects of Ripple’s growth was the highlight of the AMA.
Talking about xRapid, Ripple’s digital asset created for payment providers and other financial institutions Brad said that it will be launched before the end of 2018 and will target less efficient borders like US and Mexico.