Ripple Chief Technology Officer David Schwartz has clarified that the XRP Ledger (XRPL) was designed for efficiency and real-world utility, not to drive speculative price increases for XRP. In a series of social media statements, Schwartz explained that XRPL's core purpose is to provide a fast, secure, and low-cost payment network, with XRP gaining value organically through adoption and usage.
Schwartz highlighted that XRP holds a "privileged place" on the ledger as the only asset with no counterparty, making it jurisdictionless and favored by autobridging features that enhance liquidity for cross-asset transfers. He emphasized that XRP's independence from governments or companies ensures a neutral global system, and its value depends on stability, reliability, and practical utility in payments.
The discussion arose amid community debates following the Balancer hack on Ethereum, which drained over $120 million. XRP supporters argued that XRPL's native features, which avoid smart contract dependencies, reduce such risks. Schwartz countered that validators on XRPL do not earn user payments or transaction fees, unlike Bitcoin miners or Ethereum stakers, and instead work collaboratively to maintain network integrity without intermediaries.
Additionally, Schwartz denied claims that Ripple's large XRP holdings—34.75 billion XRP locked in escrow—are suppressing the token's price. He argued that if XRP were worth more without Ripple, the effect would cancel out in buying and selling dynamics, and that Ripple's presence does not impact the ledger's operation or user transactions. He reaffirmed that transaction fees on XRPL are minimal and solely for spam protection, underscoring the network's focus on performance over speculation.
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