thecryptobasic.com
Ripple’s Chief Technology Officer David Schwartz has addressed an important question about the role of $XRP on the $XRP Ledger (XRPL) and clarified why $XRP remains essential.
In a recent exchange, an $XRP enthusiast asked Schwartz whether every coin transacted on the XRPL requires $XRP, raising concerns about the potential for other assets to operate without it. Specifically, the enthusiast inquired if transactions could occur on the XRPL without $XRP acting as a gas fee.
Nothing Can Move on XRPL Without $XRP, Says Ripple CTO
In response, Schwartz explained that $XRP is not just a transaction medium but a necessity for maintaining the XRPL’s security. He pointed out that spam attacks pose a serious risk to public ledgers.
Without a scarce asset like $XRP to fund transactions, malicious users could overwhelm the network with a flood of transactions, effectively stalling its operation. In this context, $XRP acts as a safeguard, imposing a cost on every transaction to ensure network stability.
“XRPL only uses $XRP for this purpose. Unless rules change, nothing can move on XRPL without $XRP,” Schwartz stated.
For a public ledger to resist spam attacks, you need something scarce to fund a transaction so an attacker can't drown the system with infinite garbage. XRPL only uses $XRP for this purpose. Unless rules change, nothing can move on XRPL without $XRP.
— David "JoelKatz" Schwartz (@JoelKatz) October 27, 2024
Schwartz’s comments highlight a design choice central to the XRPL’s function, confirming that $XRP is integral to the ledger’s operation.
$XRP Position Also Secured Amid Stablecoin Introduction
Notably, Schwartz’s disclosure also supports the popular view that Ripple’s upcoming stablecoin ($RLUSD) could ultimately benefit $XRP as it will operate on both the $XRP Ledger and the Ethereum blockchain.
Some $XRP proponents have previously expressed concerns that Ripple’s decision to incorporate a stablecoin into its cross-border payment service might render $XRP unnecessary within Ripple’s payment ecosystem.
However, Ripple CEO Brad Garlinghouse and former Ripple insiders have reiterated that $RLUSD will instead strengthen $XRP’s ecosystem by improving liquidity and expanding its use cases. They argue that stablecoins are crucial in DeFi, and the introduction of $RLUSD will support, not undermine, $XRP’s utility.
In a recent interview, Garlinghouse stated that $RLUSD will take on the role currently held by stablecoins like USDT and USDC within Ripple’s payment services.
Essentially, Schwartz’s latest clarification reassures the community that $XRP remains central to XRPL operations, even as additional assets like $RLUSD are introduced.