Ripple CEO Brad Garlinghouse Talks About XRP at Disrupt SF 2018
Brad Garlinghouse, the CEO of Ripple Inc, recently talked about the company as well as XRP at Disrupt SF 2018.
He was joined by Michael Arrington from Arrington XRP Capital in the interview.
The interview started off with the interviewer talking about Satoshi Nakamoto inventing Bitcoin which required constant mining for the cryptocurrency to be made available for the users. He then talked about how Ripple is a real-time gross settlement system currency exchange and remittance network created by Ripple Labs and how the cryptocurrency works on a consensus ledger which requires pre-mining of tokens.
He then talked about how all hell broke loose when the people started saying that the XRP network is centralized, and the entry of Arrington who had left the venture capital fund, Crunch Fund, to start his own crypto fund called Arrington XRP which is built on XRP. It uses the technology provided by Ripple to transfer money all around the world at speeds next to instant.
Garlinghouse explained how Ripple took a different approach in the crypto space than its competitors by saying:
“Ripple took a contrarian view pretty early in our evolution and said look if you want to really revolutionize the way payments work, if you really want to revolutionize the way transactions work in this regard, it’s not going to happen by everybody giving up their existing infrastructure and just switching to something new. As much as I am a bull on Bitcoin (BTC), there’s not going to be one ledger to rule them all. Ripple invented a series of technologies built upon the XRP ledger that allows institutions—banks—and even in some cases, governments, to take advantage of these technologies and dramatically accelerate the nature of transactions.”
Ripple has been called the Devil time and again because people perceive it to be a highly centralized cryptocurrency. Since it is far from the truth, the Ripple CEO tries to explain why people have this idea and why they’re wrong:
“The people who say is somehow the Devil, it’s because we’re partnering with the man. We decided that if you want to enable an internet of value, you’re going to connect the repositories of value—and the repositories of value are the banks.”
He then went ahead and told the public that XRP is a fully decentralized ledger and that Ripple, as a company, can’t control the XRP ledger. Ripple only controls a handful of nodes on the network—a mere 7 percent of all of the public nodes on the network are controlled by the company. To take things into perspective, three miners in China control 50 percent of the total amount of public nodes on the Bitcoin blockchain—thus making the Bitcoin blockchain much more centralized than the XRP network.
Arrington then asks Garlinghouse whether Ripple can roll back XRP transactions or not. To this, Garlinghouse replies by saying:
“This is one of the misinterpretation things people say like Ripple can block a transaction. Not true. We can roll back a transaction. Not true.”
When Arrington asks if its something they can’t do or just something they wouldn’t ever do, Garlinghouse lets him, and the public, know that the company can’t do that.
Later in the interview, Garlinghouse explained how XRP is not a security. He talked about how even if someday Ripple shuts down as a company, XRP would still continue to function as a cryptocurrency. Garlinghouse makes a valid point when he says that if XRP were to be a security, there would be something it would be a security of. However, there isn’t anything that XRP is backed against.