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Jed McCaleb States the Difference Between Ripple and Stellar (XLM)
In a recent interview, Jed McCaleb, co-founder of both Ripple and Stellar, provided insightful comments on the philosophical differences that led him to leave Ripple and create Stellar. His responses have sparked significant interest within the XRP community, with one prominent crypto enthusiast drawing attention to these points by framing them as critical questions for users to ponder regarding Ripple’s ongoing strategy and level of decentralization.
During the interview, McCaleb emphasized his vision to build an “internet-level protocol.” He reiterated that such a protocol should be operated by a non-profit entity, much like how the internet functions today. McCaleb stressed that a payments network should operate as openly and interoperably as information flows on the internet, which necessitates governance and structure that he believes Ripple does not implement.
Furthermore, he highlighted that Stellar’s approach is centered around broad participation across the network. He posited that a decentralized payments platform relies heavily on the widespread distribution of its native asset and engagement from numerous independent participants. According to him, Stellar’s efforts to distribute its underlying coin as widely as possible are crucial in achieving this philosophy.
The interview also touched upon concerns over centralization and technical limitations. When asked about decentralization, McCaleb pointed out that Ripple’s consensus algorithm makes it difficult for parties outside Ripple Labs to run nodes. This results in Ripple Labs operating the majority of the nodes, effectively creating a system that is centralized in nature, similar to existing platforms like SWIFT or PayPal.
In his closing remarks, Jed McCaleb reiterated the importance of an open, decentralized system to achieve ubiquity and sustainability. He argued that only a truly open network not controlled by a central authority has the potential to achieve global scale and user trust, much like how the internet has evolved over time.
Overall, this interview sheds new light on the fundamental differences between Ripple’s strategy and Stellar’s approach.
Source: timestabloid.com
