XRP Decentralization Debate: Ripple CTO And General Counsel Weigh In

The recently released Hinman email and speech document has thrown controversy into the crypto community.The crypto community is debating whether XRP is sufficiently decentralized," following the former SEC director Hinman's remarks that Ether's sufficient decentralization" makes it non-security.

Ripple's chief technology officer, David Schwartz, and the company's Chief legal officer Stuart Alderoty weighed in on the discussion.

Schwartz said those claiming that XRP is not sufficiently decentralized have yet to prove the harm it has caused investors. Alderoty, on the other hand, noted that decentralization is a technical term that doesn't define a blockchain legally.

XRP Decentralization Debate

William Hinman listed certain supposedly decentralized factors to consider when determining what assets are securities. Hence, most people claim XRP is not decentralized since Ripple allegedly controls the asset by holding a substantial amount of the token supply in escrow.

This notion has triggered heated arguments among XRP proponents and other crypto community members. Some even say XRP and its native blockchain XRP Ledger are either centralized or not decentralized enough.

Ripple CTO Weighs In

In response, Schwartz said no one among those claiming XRP or XRPL is not sufficiently decentralized because Ripple's control has proven how the firm uses the supposed control" to harm investors.He asserted that it's impossible for the claimants to prove anything since non exists.

Meanwhile, Schwartz's comment stirred up reactions from several crypto enthusiasts. One of the commenters, John B, said Ripple's return of unspent XRP from escrow is on the honor system. John B added that;

[...] if 10% was routinely put into a seemingly legit project where it was used to manipulate the price, selling at period highs and buying to maintain a trend.

Schwartz responded by affirming that Ripple holds a substantial amount of XRP. However, he noted that people who believe a blockchain is less decentralized because one party has much of its native asset could also think XRPL is insufficiently decentralized since Ripple owns it.

The Ripple CTO clarified that holding a massive amount of the native token doesn't grant a person control over the governance or ledger.

Ripple's Chief Legal Officer's Response

Stuart Alderoty, Ripple's chief legal officer, joined the debate. Alderoty noted that decentralization" is a technological standard for qualifying a blockchain, not a legal one.

Citing William Hinman's made-up decentralization factors, Alderoty noted that it's erroneous to define a blockchain's legal designation using a technological term such as decentralization.

The Ripple general counsel stated that Hinman formulated those factors to dismiss the actual legal requirements of determining what digital assets are securities.

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