As a seasoned crypto investor with over a decade of experience navigating this wild and unpredictable market, I find myself intrigued by the ongoing discourse between David Schwartz and his critics on Twitter. Having witnessed the rise and fall of countless projects, I can’t help but feel that Ripple’s story mirrors my own journey in many ways – filled with hope, disappointment, and an ever-present dash of skepticism.
David Schwartz, Ripple‘s Chief Technology Officer, commonly known as “JoelKatz”, took to a platform (previously Twitter) to respond to criticism targeted at his organization and the XRP Ledger.
Has Ripple Failed With Its Payments Business?
188ape user posed a question to Schwartz, implying that XRPL’s unique value in the current market is being overshadowed by other layer 1 platforms, suggesting that these new systems can perform similar functions as XRPL, and even more. In response, Schwartz underscored the exceptional qualities of XRPL, pointing out that it provides capabilities such as stablecoins, non-fungible tokens (NFTs), and a decentralized exchange (DEX) while minimizing user exposure to smart contract risks.
He stated: “I don’t think there’s any other blockchain that has features like stablecoins, NFTs, a DEX, and so on that doesn’t expose you to the risks of smart contracts where your wallet has no way to know what the things you agree to are actually doing.”
The conversation intensified when another user, @dr_wonder589 (Dr. Wonder Bread), remarked that despite these features, they don’t seem to translate into market value. “Over-engineering something doesn’t mean it’s valuable to the market,” he noted.
In response to skepticism, Schwartz voiced his astonishment at the gradual acceptance of the payments sector by Ripple. We placed significant emphasis on payment solutions during our initial design process. To my surprise, the use of cryptocurrencies or blockchains for payments hasn’t gained widespread popularity anywhere as much as I had expected, he acknowledged.
In response to continued inquiries regarding the limited popularity of this concept, Schwartz pointed out various obstacles. He highlighted regulatory unpredictability and the challenge of delivering a satisfactory user experience as major roadblocks. As he sees it, individuals who have access to conventional banking services tend to stick with their banks, while those without such options lack the spare funds to try out novel technologies.
In simpler terms, Schwartz explained that people who have easy access to banking services tend to stick with their banks because they find it convenient. On the other hand, those who lack good access to financial services often struggle financially and can’t afford to be without easy ways to manage their money, particularly for paying bills. This creates challenges in two-sided markets where both parties are essential for the system to work properly. Additionally, one-sided flows of money can lead to inefficiencies since it’s difficult to balance out external transactions.
The conversation reached a crucial point when Dr. Wonder Bread proposed that Ripple’s difficulties could be used as a handy justification for its lack of progress, all while it still earns money through XRP sales. He hinted subtly that this approach might be a strategy to secretly manipulate the price of XRP and preserve its balance.
Regarding defense, Schwartz emphasized Ripple’s clear approach since 2014 has been consistently communicated. “Ripple made a conscious decision to prioritize payments in 2014 and was completely upfront about our strategy and reasons behind it,” he said. “I believe there was no one else in the field who achieved this focus as successfully as we did.
188ape expressed dissatisfaction and asked Schwartz for tangible instances demonstrating XRP’s success: “Where can we see the success, David? Could you please provide an example of a XRP success story… I’ll be waiting,” he insisted. However, at the time of writing, Schwartz has yet to publicly address this question.
User @hesu_krypto pointed out that Schwartz’s remarks were about Ripple, not XRP directly. User @188ape added to this by stating that the community was given a different impression. Similarly, Dr. Wonder Bread expressed concern that Ripple might be influencing the market indirectly, potentially constituting securities fraud.
At press time, XRP traded at $0.70.
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2024-11-14 06:42