In a recent interview with Internet History Podcast, David Schwartz, the Chief Technology Officer of the leading blockchain firm, Ripple spoke about the mining scenario in the XRP ecosystem and compared it against that of Bitcoin [BTC]. Here, he stated that the initial idea, while developing the XRP ledger was to get rid of the proof-of-work mechanism that Bitcoin uses.
Here, the CTO backed his statement by mentioning the issues that align with the protocol. Schwartz explained that XRP is not an adversarial system like the Bitcoin ledger. Furthermore, the BTC ecosystem pits miners against each other in a competition for a fixed pool of resources. This creates adversarial interests that make the security model of Bitcoin difficult, he said. In his words:
“It’s not an adversarial system like the Bitcoin ledger is. if you’re mining and I’m mining, we’re competing for sort of a fixed pool of resources and that creates sort of adversarial interests that make the security model more difficult.”
Subsequently, the blockchain mastermind also elaborated on the nature of the XRP ledger, addressing it as cooperative. He stated that all the members of the ecosystem are working together on advancement. He added:
“[…] which means that if you’re going to improve the stability of the network, I want you to participate. Because you’re not taking anything away from me and I think that can make a more secure model but it does mean that the system can’t sort of give out the digital asset.”
He further stated that all the XRP that will ever exist was created in the genesis ledger in June 2012, when the system was built. Regarding proof-of-work, he said that the mechanism has distributed the asset broadly but miners have high expenses wherein the costs of ASIC and power have to be taken into consideration. In his opinion, the money is sucked out of the ecosystem as the miners start selling due to high costs of mining.
Lastly, the Ripple official mentioned that the XRP ledger leaves out one inherent feature of predictable market supply, which is fulfilled via Ripple-created escrow accounts.
Subscribe to AMBCrypto’s Newsletter
XRP and XLM Price Analysis: Rival coins show bearish pressure of slightly different magnitudes
Monero [XMR] paired with Bitcoin [BTC] and Ethereum [ETH] on KuCoin
Bitcoin [BTC]: Nouriel Roubini connects the fall of ‘criminal ICOs’ to the fall in BTC and ETH prices
Bitcoin [BTC] and Ethereum [ETH] spend millions to secure network against 51 percent attacks
Ethereum [ETH]’s Vitalik Buterin says he is ‘pretty sure’ that more ERC20 tokens will be released
Craig Wright’s Twitter account suspended after threatening harassment and libel lawsuits
Bitcoin [BTC] critic Agustin Carstens warns against central banks issuing virtual currencies
Qtum partnership with Zeus enables users to trade cryptocurrency on Apple Pay, Samsung Pay
Bitwise’s report to SEC suggests unregulated crypto exchanges fake 95% of Bitcoin [BTC] trading volume
Tron [TRX] DApp Weekly report: Justin Sun’s cryptocurrency lays down claims that Tron is better than Ethereum and EOS
Bitcoin [BTC] Futures in good stead against its Spot equivalent: Bitwise Report
- Bitcoin Cash
Bitcoin Cash [BCH] advocate Roger Ver shows his support for Silk Road founder Ross Ulbricht again
Ethereum [ETH] core dev clarifies acceptance of ProgPow in future hard forks
Bitcoin Lightning Network will never be production ready, says Bitcoin Cash [BCH] proponent Rick Falkvinge