The private ledger of XRP FUD erupted after the news about the transfer of money from Mexico to the U.S. took place a few days back. People who tried to find the transaction on the XRP ledger failed to do so and were convinced that there was indeed a private ledger for xRapid transactions via XRP.
As per the company, they made a transaction worth £3,521.67 i.e., 86,633.00 from U.K. to Mexico. The company even stated that they saved 79.17 pounds and 31 hours on this transaction.
@MarkCryptos and @XRP_Mahn1 both asked a similar question to the CTO of Ripple, David Schwartz if this was actually true in separate tweets.
“@JoelKatz Some seem to think there is the ledger, and a hidden ledger, (One retail, one institutional) that will eventually be merged together. This to my understanding seems ridiculous as the protocol rules state one state is valid, and it’s immutable.”
David Schwartz replied:
“It’s hard to imagine what such a merger would look like. It would have to follow the rules of the public ledger. It’s kind of funny, I was actually thinking just today about how cool it would be if you could run the XRPL software in a private ledger mode and later bridge…
to the public ledger. For example, you could have an asset issued on both ledgers that’s bridged by the validators of the private ledger who multisign txns for the public ledger. It’s actually a cool use case to cut txn fees and scale.”
The conversation on the Twitter thread continued and a user asked if there is a possibility of a private ledger that could be set up between organizations for transactions via xRapid
Schwartz continued that the XRP Ledger is public and it is the “authoritative proof” that a person holds XRP. He continued that there were ways that a person/organization could use the real XRP on a private ledger but would require for that person/organization to actually buy XRP to do the bridging.
David Schwartz further stated:
“That gives you two interesting use cases: 1) No XRP for cases where the cost of XRP is a factor. You only need/use XRP when you need to interact with the public ledger. 2) XRP fully linked, for cases where you want liquidity and connectivity and don’t mind the very small costs.”
Furthermore, Schwartz said that none of this was built yet and even if it were to be done it would not be difficult. Moreover, he said that if such a thing ever happens it would be questioned over the system being centralized. He continued that he liked the idea of federation run ledgers.
David Schwartz concluded saying:
“If you were creating such a walled garden, why use a crypto or blockchain at all? This seems like just recreating private ledger balances — what everyone’s been doing already.”
Subscribe to AMBCrypto’s Newsletter