Ripple CEO Tells Ethereum Leader Joe Lubin How XRP is Leading with Transparency and by Example
Ripple CEO talks about the company's efforts towards transparency. The blockchain algorithm was a direct result of the mismanagement that caused the greatest financial crisis the world had seen since the Great Depression of the 1920s, In view of the root causes of this, the foundations laid by blockchain were ones based off transparency and decentralization.
Recently there was a lot of chatter around these two cornerstones of crypto-assets. Specifically, Ripple was being asked to explain their management of the XRP that their trust directly controls. This issue was also discussed at a panel talk held earlier this week, where the likes of Brad Garlinghouse and Joseph Lubin were joined in by other luminaries of the business, to talk and debate various current issues.
Ripple addresses community concerns
“It’s [Ripple] not a Proof-of-Stake model, so owning a lot of something doesn’t give you control over something,”
Garlinghouse explained. He then used the platform afforded to him and addressed concerns about XRP being centralized. Quickly drawing attention to the distinction between XRPs Ledger, that is far more decentralized than the mining-based one, he said,
“The XRP Ledger is an open source decentralized technology, there’s about a 100 validators that manage the network. Ripple manages less than 5% of those nodes, and we cannot enforce upon the XRPL anything that the XRPL doesn’t want to.”
Stopping short of painting the stories as conspiracy theories, he said there was a lot of negativity around Ripple due to external factors but also because, for some reason, that is how people want to see things.
An Interesting Back and Forth
After that, an intriguing debate took form between the Ripple boss and Joseph Lubin, who asked him,
“XRP is a value token and it trades in an open market. If the CFTC noticed that you own 60% of the silver token, how comfortable would they be?”
At this Garlinghouse replied, without getting drawn into the CFTC bit, by touting how more than half of their XRP are in escrow. He further added,
”We can’t sell it, we can’t do anything with it. I think that, for the whole industry to mature we need to have transparency in the industry and Ripple is trying to lead by example.”
Lubin shot back with another query about the transparency of other digital assets that are decentralized in terms of token ownership compared to Ripple. At this Garlinghouse expanded on his initial point and said:
“Ownership of the token is decentralized in so far as they work on Proof-of-Stake. If it's a mining based protocol then centralization is based on mining control.”
Twitter Backs Ripple
While all this was going on avid crypto fans were busy getting in the mix. One Twitterati, XRP_Ninja, exclaimed that he was unsure what the problem was with Ripple selling XRP,
”They own it. They can do with it what they like – not to mention that the selling of it actually has a purpose.”
Others were even more supportive, Tiffany Hayden even suggested a rating system for blockchain firms, stating,
“Ripple is the only transparent company in the BLOCKCHAIN space and they are punished for it. We should follow Brad’s lead and turn the table on these other companies who hide in opacity.Oh! Let’s start a rating system!”
Controversies go hand in hand with success and at the moment XRP has been building on some solid foundation. With a strong link to the banking sector in the Far East, Latin America, and South America, Ripple certainly seems to be having an effect, the vibrations of which will undoubtedly benefit the entire industry.