What to Know:
- Ripple CTO David Schwartz identifies the core XRP stakeholders as active users, those seeking decentralized finance, and node operators.
- A recent report sparked debate over Ripple’s valuation, with some arguing it’s solely based on XRP holdings.
- Schwartz emphasizes XRPL’s design, which eliminates paid intermediaries, benefiting users directly.
XRP’s ecosystem is built upon a foundation of engaged participants, according to Ripple CTO David Schwartz. He recently outlined the key stakeholders as those who actively use the XRP Ledger (XRPL) for transactions, individuals embracing self-custody solutions, and those who operate nodes for their own purposes. This vision emphasizes a user-centric approach to blockchain technology.
Discussions around Ripple’s intrinsic value have recently intensified. Some analysts suggest that Ripple’s valuation is primarily tied to its XRP holdings, especially after a $500 million funding round. However, counterarguments highlight the utility and potential of the XRPL, which is often undervalued in these assessments.
The XRPL operates on a unique model where validators are not financially incentivized. Instead, participants voluntarily contribute to the network, often to support their own business operations or specific use cases. This design choice aims to minimize intermediaries and reduce transaction costs for users.
Schwartz argues that blockchain networks that eliminate paid middlemen offer greater benefits to their users. By removing the need to compensate validators through transaction fees, XRPL aims to provide a more cost-effective and efficient platform. This approach aligns with the broader ethos of decentralization and financial empowerment within the crypto space.
In conclusion, the discussion around XRP and Ripple highlights the diverse perspectives on valuing blockchain technologies. While debates persist, the focus on user empowerment and efficient transaction processing remains central to the ongoing development and adoption of XRP and the XRPL.
Source: Original article
