Ripple and XRP – Part 6: Is XRP Decentralized? (2018)


So the concern with centralization is whether there’s one party that gets to determine what the rules are that calls the shots that can stop the system that controls it that can change the systems in ways that harm its users. The software is all open anyone can run a server anyone can run a validator and they do. Exchanges are stakeholders, people who hold XRP and run a server to process their own transactions they’re all stakeholders in the system. And if Ripple were to disappear, nothing would prevent them from continuing to operate the system exactly the way it operates today. A lot of people are concerned that Ripple might be able to create more XRP, but the protocol doesn’t have any way to say hey, I got a whole bunch of XRP just don’t ask me where it came from. The transaction rules are deterministic the software is open-source. There is no way to create XRP. Ripple currently holds about sixty billion XRP. That’s sixty percent of all the XRP that will ever exist. Fifty-five billion XRP have been locked in escrow to release over fifty-five months, a billion a month. Ripple has done that to provide some level of supply predictability to ensure that we’ll be holding our XRP over a period of time. Any XRP that we don’t use in a month just because a billion XRP releases every month, doesn’t mean that we’ll use it. What we don’t use at the end of each month will be returned to an escrow adding a new new month and because those escrows are public on the ledger that will also provide an additional level of transparency as people see how much XRP is returned to escrow each month. So as I’ve said publicly one of my top priorities for 2018 is improving the decentralization of the XRP ledger. Through 2018 we’ll be adding additional validators and you’ll look to see landmarks where the network will be increasingly independent of Ripple’s operations. You

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