- Ripple CTO rejects centralization claims, compares XRP governance to Bitcoin.
- Schwartz explains forks reveal blockchain governance flexibility and market dominance.
- Decentralization still allows harmful changes through majority community consensus.
Ripple’s Chief Technology Officer, David Schwartz, has responded to rising concerns over centralization accusations targeting XRP after online discussions compared its market capitalization with BlackRock. Schwartz argues that the description of XRP as a centralized venture capital project is inaccurate and fails to take into account the way governance works on all public blockchains.
He clarified that all the participants of networks such as Bitcoin, Ethereum, and the XRP Ledger can jointly decide to change the rules should consensus be reached. This, he said, is not solely a property of Ripple architecture but is common to decentralized systems.
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Forks Highlight Governance Flexibility
Schwartz noted that disputes over blockchain governance often lead to forks, giving communities the chance to adopt different rules. Token holders may benefit as their assets duplicate on both chains, potentially expanding transaction capacity and use cases.
However, he warned that in reality, forks do not tend to bring the promised gains. The forces of the market typically tend to drive the value and user activity to a single chain and leave the other feeble, regardless of its initial expectations.
Decentralization’s Practical Limits
In addressing misconceptions about decentralization, Schwartz emphasized that distributed systems can still approve harmful rule changes. In case of sufficient consent, censorship and other forms of modification might be applied regardless of individual dissent.
He also explained that there is no central control over protection against provocative updates. The authority is entirely communal, and the results are the expression of mass agreement instead of a promise of good development.
Implications for XRP
Schwartz pointed out that governance challenges are not unique to the XRP Ledger but are common across all major blockchain networks. His remarks counter the allegations that Ripple is directly controlling XRP’s decision-making.
He pointed out that, like Bitcoin and Ethereum, the XRP Ledger is dependent on the agreement of its participants to determine the future. Consequently, accusations of centralized dominance misrepresent how the system functions.
Schwartz’s response underscores that decentralization does not ensure immunity from negative changes. Fork mechanisms provide flexibility, but market forces ultimately determine which chain or governance path prevails.
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