On the 29th of August, Ripple CEO, Brad Garlinghouse, was a guest at the Stanford Law School to discuss cryptocurrency regulation. He was part of a panel at the University’s radio show known as the Stanford Legal. This show is hosted by Pam Karlan and Joe Bankman. On this day, they were joined by Brad Garlinghouse and Professor Joe Grundfest. The entire session can be found on youtube courtesy of BankXRP.
In the discussion, Brad Garlinghouse once again clarified that the Ripple company did not create, neither issue XRP. Brad is quoted as saying:
I will correct one thing right out of the gate. Ripple did not actually issue XRP. The XRP ledger is an open source Decentralized Technology…not dissimilar to Bitcoin and some of the creators of the XRP ledger actually had been early engineers that worked on Bitcoin. And they saw some of the scalability problems that Bitcoin was most likely to have…
They speak both from an energy consumption, cost…and some of the other problems. They wanted to build a better digital asset to solve some of these problems.
XRP Is The Most Decentralized
With the above comments, Brad Garlinghouse has once again clarified that XRP is not a security as many crypto enthusiasts have been led to believe. The fact that the technology is open-source, makes the case that the Ripple company simply took it upon themselves to create payment solution products around it.
Ripple CTO, David Schwartz, goes on to explain the inherently decentralized nature of the XRP ledger in a not so old post on Ripple.com. In the post, David Schwartz highlights several factors that make the XRP ledger more decentralized than Bitcoin and Ethereum.
To start, the proof of work evident in the BTC and ETH networks makes it possible for a few miners to take control of the entire network and even dictate the cost of transactions. On the other hand, the consensus protocol of XRP relies on validators that are not rewarded thus making it more democratic and less vulnerable to control by miners.
Another thing is that for any rule change to be made on the XRP ledger, 80 percent of the validators must be active on the network for a 2 week period to continuously support a change before it is applied. This, in turn, means, as the BTC and ETH network become more centralized with time due to miners gaining more power, the XRP ledger is becoming more decentralized due to the fact that the Ripple company is slowly ceding its positions as UNLs (Unique Node List).
SEC Have Not Documented Whether BTC or ETH are Not Securities
Using the facts from David Schwartz’s post, we are reminded of the loopholes in SEC’s Director Hineman’s comments about Ethereum. One thing many crypto-enthusiasts did not notice about his statement, is that there was a disclaimer at the bottom stating that the SEC is not responsible for any private remarks of any SEC employee or commissioner.
Further checking the speech by Director Hineman, we find the following disclaimer at the bottom:
The Securities and Exchange Commission disclaims responsibility for any private publication or statement of any SEC employee or Commissioner. This speech expresses the author’s views and does not necessarily reflect those of the Commission, the Commissioners or other members of the staff.
In conclusion, the comments by Brad Garlinghouse plus the post by David Schwartz have proven that the XRP ledger is the most decentralized in the crypto-verse. Furthermore, the Ripple company did not issue XRP. Adding the disclaimer from the SEC, it is safe to conclude that the FUD around XRP that it is a security, has no basis or foundation.
For the latest cryptocurrency news, join our Telegram!
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
Image courtesy of Pexels
Read more at https://globalcoinreport.com/brad-garlinghouse-ripple-issue-xrp/