Ripple’s VP of Product Answers Questions About XRP’s Decentralization Status
The cryptocurrency community has numerous questions around whether XRP is a decentralized token or not. To clear these doubts, Ran NeuNer questioned Asheesh Birla, the Senior Vice President of Product at Ripple on his CNBC program ‘Crypto Trader’. This interview gave several insights on these topics that are of importance to the crypto community.
Interestingly, Ran NeuNer, the interviewer has previously expressed pretty negative views towards XRP. On CNBC Fast Money he previously revealed that he personally would throw XRP into the garbage as it had no real utility. However, in this interview, he covered topics that have been surrounding the Ripple and XRP community for a while now. These topics include questions such as ‘Is XRP Decentralized?’, ‘Is there a use case for the XRP token?’ , ‘Can there be scarcity?’. ‘Is XRP the only thing really developing on the Ripple platform’ and ‘Are any of the developers of the XRP ledger associated with Ripple?’
One of the questions asked Birla about the relationship between Ripple and XRP and to this he responded that Ripple is a for-profit company that builds enterprise software grade products for financial institutions whereas XRP is a digital asset and while Ripple holds a good chunk of this digital asset, it is different from Ripple. This is because Ripple is only one of the software developers of the Ripple open ledger, open and available for all to use.
Next, he was asked whether any of the XRP ledger founders connected with Ripple, Birla said that David Schwartz, the current CTO is the common link between the two. He serves as a mentor to the Ripple employees and is an important person who has not only build the XRP products but also the original XRP ledger.
He then clarified that XRP ledger is decentralized and Ripple has plans to decentralize it even further. XRP doesn’t have a mining system but it has validators around the world who validate the transaction. According to Asheesh, there are currently 10 in-house validations in addition to the hundreds spread across, and they plan to decentralize the validation process even more.
He then gave examples of how products like XRapid and XCurrent function and are transforming the way financial institutions transfer both information and money across the world. According to him, using the XRP token lends speed to the transaction and therefore using USD will only slow down the process.
A lot of Twitter users and crypto enthusiasts responded to NeuNar’s tweet about this interview. Some of the responses are as follows.
Asking a Ripple employee if their network is decentralized is like asking Melania if Trump is a good husband.
@Ocean_4549 wrote in support of XRP,
This digital asset leads the way, and not just by a little bit. having a world class team building infrastructure for it and on it only proves it is not only here to stay but will outperform all crypto’s in the short, medium and long term.
Brilliant interview. You were great @ashgoblue! And good questions from you @cryptomanran! The biggest FUD points, like centralization and distribution of XRP will slowly decrease as the validator list grows and institutional sales of XRP takes pace.
Recently, multiple XRP and Ripple employees have been coming forward and reiterating that XRP is a decentralized digital asset. David Schwartz also recently wrote a report in which he attempts to clarify this status. He wrote,
Put simply, the XRP Ledger is based on an inherently decentralized, democratic, consensus mechanism — which no one party can control.