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.
