In a recent interview with Internet History Podcast, David Schwartz, the Chief Technology Officer of the leading blockchain firm, Ripple spoke about the mining scenario in the XRP ecosystem and compared it against that of Bitcoin [BTC]. Here, he stated that the initial idea, while developing the XRP ledger was to get rid of the proof-of-work mechanism that Bitcoin uses.
Here, the CTO backed his statement by mentioning the issues that align with the protocol. Schwartz explained that XRP is not an adversarial system like the Bitcoin ledger. Furthermore, the BTC ecosystem pits miners against each other in a competition for a fixed pool of resources. This creates adversarial interests that make the security model of Bitcoin difficult, he said. In his words:
“It’s not an adversarial system like the Bitcoin ledger is. if you’re mining and I’m mining, we’re competing for sort of a fixed pool of resources and that creates sort of adversarial interests that make the security model more difficult.”
Subsequently, the blockchain mastermind also elaborated on the nature of the XRP ledger, addressing it as cooperative. He stated that all the members of the ecosystem are working together on advancement. He added:
“[…] which means that if you’re going to improve the stability of the network, I want you to participate. Because you’re not taking anything away from me and I think that can make a more secure model but it does mean that the system can’t sort of give out the digital asset.”
He further stated that all the XRP that will ever exist was created in the genesis ledger in June 2012, when the system was built. Regarding proof-of-work, he said that the mechanism has distributed the asset broadly but miners have high expenses wherein the costs of ASIC and power have to be taken into consideration. In his opinion, the money is sucked out of the ecosystem as the miners start selling due to high costs of mining.
Lastly, the Ripple official mentioned that the XRP ledger leaves out one inherent feature of predictable market supply, which is fulfilled via Ripple-created escrow accounts.
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