In a current interview, Ripple CTO David Schwartz talked about the benefits of XRP Ledger’s consensus mechanism over Bitcoin’s Proof-of-Work (PoW) consensus mechanisms.
The Ripple CTO’s feedback about Bitcoin and XRP got here throughout a Zoom call with TechRadar Pro a couple of days in the past.
Schwartz mentioned that miners’ involvement in Bitcoin’s PoW consensus course of means that you’ve got a fee community that’s not as decentralized and disintermediated as some individuals wish to imagine:
“A cryptocurrency must be a one-sided market; the customers desire a retailer of worth and a way of trade. However what Bitcoin did was flip it right into a two-sided market…
“Miners have traditionally fought for top transaction charges, as a result of that’s their income. The fact is that you’ve got one other set of stakeholders who’re attempting to cost the best charges they’ll get away with, and that’s not a lot totally different from the best way funds work at a financial institution.“
After understanding the issues with PoW in 2011, Schwartz and former colleague Jed McCaleb determined to strive one thing totally different that might enhance on pace and decentralization:
“What we had been beginning to suppose was that PoW wasn’t what was superb about Bitcoin. It was the truth that all transaction knowledge and transaction guidelines are public and that there isn’t a central operator...
“What we did is radically trust-minimize the system, eliminating the motivation to assault the community…
“The way in which we designed the XRPL is that the consensus algorithm simply places transactions so as. There aren’t any cryptocurrency rewards, so the method is cooperative versus aggressive.“