
Ripple CTO Clears Up Critical AMM Misconception
In a recent statement, Ripple’s Chief Technology Officer (CTO), David Schwartz, has clarified a crucial misconception surrounding Automated Market Makers (AMMs) and the impact of increased transaction per second (TPS) levels on blockchain scalability.
Schwartz emphasized that raising TPS might lead to higher costs for bandwidth, storage, and computing power for all participants. This increase in costs could result in fewer people finding it worthwhile to run a node, thereby reducing the overall node count. A lower node count means more users would have to rely on others’ nodes, which ultimately diminishes decentralization – a core principle of blockchain technology.
As Ripple continues to push the boundaries of TPS, this crucial consideration underscores the importance of balancing scalability with the need for decentralized and secure networks.
Source: u.today