Ripple Inc. has always been out there to defend XRP (XRP) against claims from digital currency investors and pundits that believe that the digital currency will be regarded as a security by the United States SEC as a result of its superficially centralized design. Nevertheless, David Schwartz – the Chief Technology Officer of Ripple Inc. is out to set the record straight about the intrinsically decentralized nature of XRP (XRP).
David Schwartz Talks about Decentralization
By definition, decentralization is the distribution or dispersion of powers and function, – according to Merriam-Webster dictionary. Nevertheless, in the digital currency world, the meaning of decentralization is less clear, as the CTO said in his report “is wildly misunderstood, nuanced, evolving.”
The Inherently Decentralized Nature of XRP
The CTO tried to clear up some of the misconceptions around XRP’s decentralization in a report titled “The Inherently Decentralized Nature of XRP.” Unlike Ethereum (ETH) and Bitcoin (BTC) that utilizes Proof of Work algorithms, hence giving miners rewards for validating transactions, XRP (XRP) utilizes a consensus protocol that needs validators to record and validate transactions without incentives.
He said that these validators are scattered all over the world, and they comprise of a range of institutions, exchanges, and individuals. In other words, the Chief Technology Officer is saying that XRP (XRP) is based on an inherently democratic, decentralized, consensus mechanism that is not and cannot be controlled by one party.
The CEO of Ripple Inc. – Brad Garlinghouse – also showed his approval of the post of the David Schwartz, and he promised more on this issue during his AMA (Ask Me Anything) session on Twitter.
XRP (XRP) Price Today – XRP / USD
At the time of writing, the value of XRP is down by more than five percent over the past twenty-four hours, leaving the digital currency to trade at $0.323. The coin currently boasts of a market cap of $12.77 billion and a trading volume of $251.17 million over the past twenty-four hours.