Ripple's Chief Technology Officer, David Schwartz, recently responded to criticisms regarding the XRP Ledger (XRPL), highlighting its practical functionalities and significance.
Ripple CTO's Response
In response to claims of XRP’s low utility and low trading volume on XRPL, Ripple’s CTO pointed out that the figure of $44,000 likely represented only a small fraction involving Automated Market Makers (AMMs). David Schwartz emphasized that XRPL is a decentralized exchange (DEX).
XRP Ledger Capabilities
The XRPL offers a broad range of functionalities, including cross-currency and cross-border payments, tokenization, and more. Key features include token exchanges, NFTs, a decentralized exchange, escrow functionality, token management, and embedded compliance. NFTs are built into XRPL's core protocol and do not require smart contracts for creation. The XLS-20 standard allows for NFTs with royalties and anti-spam measures.
Future Updates and Plans
In 2024, the RLUSD stablecoin, pegged to the US dollar and backed by deposits and short-term US treasuries, was introduced. The XRPL does not currently support arbitrary smart contracts, a deliberate decision for ensuring security. Plans for native smart contracts were announced in September 2024, and progress is being made.
Ripple CTO David Schwartz highlighted that the XRP Ledger possesses numerous useful functionalities that make it a significant platform in the crypto world, counteracting some critics' claims of it being otherwise insignificant.
