More

    David Schwartz Illustrates The Difference of Ripple's XRP Ledger And Bitcoin's Proof-Of-Work

    The CTO of Ripple, David Schwartz recently spoke to the News and Research Team from the McCombs School of Business at The University of Texas in Austin where he was interviewed about a wide range of topics on the crypto ecosystem. One that stood out was the XRP Ledger’s consensus and Proof-of-Work [PoW] protocols.

    PoW/PoS relies on calculating hashes to verify transactions and unlocking rewards, and the more participants there is on these blockchains, collectively ensuring enough hashpower to keep transaction times down, the more electricity is also used.

    The XRP ledger does not rely on PoW or PoS, but Consensus, and this makes it immune to double spending. So decentralization serves the purpose of eliminating governance only. Furthermore, it has the benefit of using far less electricity.

    A PoW/PoS network is built to be competitive, as all participants want to get the rewards. In a consensus network participant competition is non-existing, and the incentive to participate is a reliable system. David said:

    “The miner who mines a particular block gets to choose every transaction in that block, so those are sort of a dictator-of-the-moment and they are completely self-interested, they are not trying to help you out, they are trying to help themselves out. So we built the ledger from the beginning as a multi-currency ledger, and I think that we built in peer-to-peer credit and lendings to people and I think that is probably the key difference between XRP’s consensus mechanism and Bitcoin’s proof-of-work.”

    The first part of Consensus is agreeing which transactions to include in the upcoming ledger. The second part of the Consensus is validation.

    Each validator validates the transactions independently, resulting in an identifying hash of the ledger. This hash is used to compare the results amongst the validator, and if consensus is met, the “winning” version of the ledger is used.

    Disagreeing validators either computes a new correct ledger or retrieves it as needed. He concludes this topic by saying:

    “The XRP Ledger is and always has been inherently decentralized because the users always retain the freedom to change their UNLs and the corresponding validators that they trust… the XRP Ledger is in many ways a more transactional, functional and decentralized ledger than either Bitcoin or Ethereum, which will only increase over time.”

    Get Free Email Updates!

    *Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

    I will never give away, trade or sell your email address. You can unsubscribe at any time.

    Sritanshu Sinha
    Sritanshu Sinha
    Sritanshu has a keen interest in emerging technologies, startups and economic anthropology. He holds the view that cryptocurrencies are the best bet humanity has got to push the world towards a borderless economy.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    3,353FansLike
    2,773FollowersFollow
    4,130FollowersFollow

    Live Bitcoin Price & Latest BTC Charts

    Today's Latest Crypto News

    Crypto Community Sentiment Still Bullish Despite BTC Trading 40% Lower Than Yearly High

    Bitcoin proponents had a lot of expectations from 2020, given the impending Block Reward Halving and the expected bull run. The year started as...

    Modern Monetary Theory (MMT) vs BTC to be the Main Event of 2020

    The biggest global emergency of the century, COVID-19 pandemic has the Treasury officials trying to decide on how much they can spend to fight...

    This Crisis Is A ‘Perfect Storm' For Bitcoin But We Could Be In For A ‘Prolonged Bear Market'

    Bitcoin is back in the green, recording the gains of 3.14% in the past 24 hours while volume on the top ten exchanges with...

    Banking Giant Santander to Bring One Pay FX Payment System to Mexico Utilizing RippleNet

    In 2020, the major Spain-based bank Santander is planning to roll out the One Pay FX program, its Ripple powered system for international payments,...

    Bitcoin Bull Market Won’t be Happening Immediately After the Halving: Bitmain CEO

    Bitcoin is currently trading above $6,300, still down over 14% on a year-to-date basis but up more than 60% from the 2020 low of...

    BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.