A recent update from blockchain researcher SMQKE has reignited the debate around XRP’s deeper function within its native ledger. The expert spotlighted XRP as a critical technical requirement, not just a digital asset used for trading.
According to SMQKE, an excerpt from a published report described XRP as “a switch that modulates the XRP Ledger.” This statement implies that XRP is the key to the ledger’s functioning, as it is the process that enables users to interact with one another and the system to operate.
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A certain amount of XRP must be reserved to create an account on the XRP Ledger. This is also applicable to other important features such as establishing trust lines and trade offers. These actions are impossible without XRP, which means that it is a required asset by any user interacting with the network.
In addition to these requirements, the report also identified competing interests throughout the XRP ecosystem. The LETS enthusiasts want the price of XRP to always be low to maintain low access costs. Concurrently, price volatility provides opportunities that generate profit for traders.
XRP Identified as a Technical Prerequisite Within Ledger Operations
Payment service providers rely on price stability to avoid risk during cross-currency transactions. These varying user needs place XRP at the center of a delicate balance between utility and market performance.
Ripple addressed these concerns in 2017 by locking 55 billion XRP in escrow and releasing only 1 billion per month. This was done to stabilize the supply of tokens and control stakeholders by giving them confidence that XRP would be predictable in its distribution and market dynamics.
SMQKE’s reference positions XRP as an essential element incorporated into the ledger framework rather than a speculative token. Access, control, and implementation of basic functions throughout the system are based on its technical requirements.
This view shifts the focus from XRP’s price changes to its use as infrastructure. Just like user groups with different demands use the same network, XRP keeps balancing utility and market forces in defining its identity.
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