Ripple’s David Schwartz Says Third-Party Cryptos Could Launch on XRP Ledger

UTC by Jeff Fawkes · 4 min read

According to Ripple CTO, the new exciting features are coming from the Ripple developers. They will allow third-party tokens to work on top of the system. Also, XRP Ledger will soon have the ability to eliminate accounts of possible network spammers.

Ripple’s XRP price falls together with other markets. But David Schwartz doesn’t care as the Ripple Ledger, XRP and the longtime holders will soon receive a significant boost. A company presents a new type of transactions for externally created tokens. Developers propose improvements to the Ripple Ledger to the public. Ripple CTO didn’t say much about the new functionality and the possible impact on the crypto prices. 

But he mentioned stablecoins, which is a major trend among institutions and even the Central Banks in 2020. The trend with banks and governments creating own tokens and stablecoins rises. Previously, people like Christine Lagarde or Ben Bernanke could say Bitcoin is a shady, unstable, unbacked asset. Now, they want their own ‘stablecoins’. And the primary tech behind a stablecoin is Bitcoin’s canonical blockchain. With slight differences and additions to allow KYC, centralized emission and other optional stuff.

The Ripple’s devs will allow pegging stablecoins to any ‘external value’ sources. Per David Schwartz stated:

“Stablecoins is the obvious use case, but it’s not just stablecoins its essential assets pegged to some external value”

In October, he already outlined a part of these plans. Part of the talk was about the ways for third party assets to be very liquid via Ripple’s net. So, Ripple is already popular and some assets suffer recognition. Ripple here plays as the provider of attention and technological advancement:

“Well, I started working on what we now call the XRP Ledger at the end of 2011; so I’ve been at this for eight [or] nine years… but the changes have been drastic. I mean in the early days all we had was the ability to perform a transaction on a decentralized ledger in just a couple of seconds, and then we started to realize that the properties of the algorithms that we developed allowed us to do things like a decentralized exchange.”

New Ripple Ledger Feature Is Valuable for Central Banks

Such a feature is not new to the cryptocurrency community. Tether’s operations work on top of several blockchains and token platforms, such as Omni, Ether, Tron and other ones. Also, Bitcoin Cash has a separate layer called the SLP-Token ecosystem which allows people to create own tokens on top of BCH blockchain.

However, since Ripple aims at conquering the world’s largest banks, not retail investors first, its pitch may have something new inside. David also claims that Ripple’s network will have 100% guarantees of liquidity. Which is not the guarantee of the many other stablecoins. Ripple has it all, thanks to its popularity and decentralized web of high-level corporations such as Microsoft as partners.

He also explains why blockchain-based systems don’t update features as often as companies who issue centrally controlled, classic software:

“You can’t really do that on a public blockchain – if the rules change, people have to run the software with the new rules. You want to ask why these systems don’t move more quickly, why they don’t add features on a regular basis, that’s why.”

He added that the new Ripple release includes a few new changes that he suggested.

It’s ‘Hopelessly Naive’ to Wait Till Bitcoin Adopts New Features

Ripple CTO continues to say that Bitcoin, as well as Ripple, will not adopt the changes in a quick way. It is slow for the adoption of new protocols because the fall of Bitcoin or Ripple due to the unexpected bug is not something the market is expecting. Per Schwartz:

“In the early days before I was working on the XRP Ledger, and I was looking at Bitcoin, and we sort of had this idea that if there was any new feature, Bitcoin would just adopt it. We now know that that’s hopelessly naive because any change to a system like this imposes costs on everybody who uses the system.”

Regarding the ability to delete accounts to prevent spam:

“This feature allows XRPL accounts to be removed from the ledger and recover most of the reserve locked in the accounts for spam prevention.”

Anyways, the significant changes must receive approval from all the Ledger participants, otherwise, they have no chance for actual implementation. Before making any code, developers dump ideas on public chats to see how Ripple fans react and gather valuable feedback.

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Jeff Fawkes
Author Jeff Fawkes

Jeff Fawkes is a seasoned investment professional and a crypto analyst. He has a dual degree in Business Administration and Creative Writing and is passionate when it comes to how technology impacts our society.