Vitalik Buterin rejects Ripple’s claim of decentralization
Vitalik Buterin has attacked Ripple and XRP, this time focusing on the centralization of XRP’s structure and tokenomics.
In a recent interview with Bankless on Monday, he indicated that Ripple is “still entirely centralized” despite assertions that the organisation has become more decentralised in response to criticism. “A crypto project must have some kind of chain data structure someplace,” he said.
Regarding the rift, he said that the business has yet to issue an apology for its claims to the US government that China controls Ethereum (ETH) and Bitcoin (BTC). “XRP has not issued an apology for asserting that Bitcoin and Ethereum are under Chinese control.”
David Schwartz, the Chief Technology Officer of Ripple, responded to Buterin’s remarks on Twitter, stating that Buterin “still doesn’t comprehend, or is pretending not to understand, that Ripple is a firm and XRP is a digital asset.”
Buterin is among the opponents who say that Ripple Labs’ disproportionate influence over XRP indicates centralization. Ripple’s community has accused Ethereum of corruption as the cause for the latter’s easy SEC approval.
After Ripple referred to ETH and BTC as Chinese-controlled assets, Buterin said that XRP has lost the right to protection from the digital asset community as a result of these outrageous allegations.
In the past, people have questioned the manner in which Ripple Labs managed the XRP coin, with some investors even conflating the two. The business said that Ripple is a blockchain-based digital asset payment network for institutions, whereas XRP is the native coin of the XRP Ledger.
To demonstrate its decentralization, the business has disclosed that it controls just four of XRPL’s 130 validators. Ripple claimed earlier this year that XRPL is “built on a decentralized, democrat, consensus process that no one party can control.”
In their third-quarter financial report, Ripple disclosed that for the first time since facing criticism earlier in the year, the company’s XRP holdings had fallen below 50% of the entire supply.