Ripple CTO Schwartz Reflects On XRPL Evolution

Ripple CTO David Schwartz has stated his thinking regarding the XRP Ledger (XRPL) has changed significantly since its inception in 2012, reflecting broader evolution within the blockchain space.

Schwartz is now focusing on how XRPL can natively support decentralized finance (DeFi), moving away from reliance on external protocols. He noted that ongoing programmability and smart contract discussions prompted consideration of native DeFi capabilities. “With programmability initiatives and smart contract discussions underway, it seemed like a good time for us to also discuss what other DeFi capabilities natively could look like,” Schwatz said.

Schwartz emphasizes a fundamental difference between XRPL and Proof-of-Stake (PoS) blockchains. XRPL prioritizes stability and trust through validator equality, contrasting with models based on token holdings. Transaction fees are burned rather than used for staking rewards, and the ledger is optimized for speed, low cost, and secure settlement.

Any new functionality, including DeFi, must align with these core principles. Schwartz is grappling with how to expand XRPL’s capabilities without compromising its unique characteristics.

One proposed solution involves splitting XRPL’s responsibilities into two layers. The outer layer would manage existing governance, amendments, fees, and policing. An inner layer, potentially incentivized through staking/slashing, would handle frequent ledger advancement.

This layered approach aims to maintain XRPL’s payment speed and simplicity while enabling validator diversity and network resilience. Schwartz believes it is technically superior to directly transforming XRPL into a standard PoS chain.

He is also exploring the use of transaction fees to pay for zero-knowledge proofs of smart contract execution. This would enable complex on-chain operations without overburdening every node, maintaining the ledger’s efficiency and allowing for increased programmability.

Ultimately, Schwartz’s reflections indicate a continued effort to adapt XRPL while preserving its foundational principles and optimizing for future capabilities.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.