The XRP Ledger (XRPL) has long been a topic of debate in the cryptocurrency community, particularly around one core question: Is it truly decentralized? Ripple’s Chief Technology Officer, David Schwartz, recently stepped into the conversation, offering clarity on the network’s architecture, governance model, and its evolving role in the broader blockchain ecosystem. His insights not only address technical underpinnings but also challenge assumptions about what decentralization really means in practice.
The Custodian Conundrum: Trust vs. Speed
One of the earliest use cases for XRPL was to enable faster and more affordable Bitcoin transactions. While this sounds promising, Schwartz pointed out a critical flaw—the reliance on custodians. To bridge Bitcoin onto XRPL, actual BTC must be held by third-party entities. This introduces a centralized point of failure, directly conflicting with blockchain’s foundational principle of trustlessness.
“Consider any realistic hypothetical: Some large contingent of XRPL users and developers want to add privacy features to XRPL that Ripple thinks will harm its business interests. What will happen? Do you think you know because I don't.”
— David "JoelKatz" Schwartz, February 19, 2025
This reliance on custodians creates a paradox. While it improves transaction speed and cost efficiency, it undermines the very essence of decentralization. True interoperability should not require users to trust an intermediary. Schwartz acknowledged this gap and emphasized the need for trustless bridging solutions—a major frontier in blockchain innovation that remains largely unsolved across the industry.
👉 Discover how next-gen blockchain networks are tackling trustless cross-chain transactions.
Consensus and Governance: Who Controls XRPL?
A common misconception is that Ripple controls the XRP Ledger. Schwartz clarified that while Ripple is a key contributor, it does not have unilateral authority over network changes. Instead, XRPL operates on a decentralized consensus mechanism requiring at least 80% agreement from validators for any protocol-level modification.
Currently, there are over 150 independent validators on the network. Ripple itself runs just one node. This structure ensures that no single entity—including Ripple—can dictate upgrades or alter transaction rules without broad consensus.
However, influence doesn’t always equate to control. Ripple holds significant sway due to its technical contributions, developer resources, and historical role in launching the network. But ultimately, adoption of new features depends on community buy-in, not corporate mandate.
This raises an important distinction: decentralization isn’t binary. It exists on a spectrum—and XRPL sits somewhere between full autonomy and centralized oversight. The system prioritizes stability and security, sometimes at the expense of rapid innovation.
Validators and Scarcity: The Double-Spend Solution
To maintain integrity, XRPL relies on validator scarcity to prevent double-spending—a fundamental challenge in digital currencies. Unlike proof-of-work systems like Bitcoin, XRPL uses a Unique Node List (UNL) model, where trusted nodes validate transactions through a consensus process.
Each participant selects their own UNL, typically composed of reputable validators. This design reduces energy consumption and increases transaction speed, but it also means users must curate trust carefully. If too many nodes on a UNL are compromised, security risks increase.
Schwartz defended this model as both efficient and secure when implemented correctly. He argued that complete decentralization without regard for performance leads to inefficiencies—citing slow confirmation times and high fees in other networks as cautionary examples.
Still, critics argue that validator selection introduces centralization vectors. The solution? Greater transparency, public validator audits, and community-driven validator initiatives to diversify node ownership.
👉 Explore how modern ledgers balance speed, security, and decentralization.
Bitcoin vs. XRP: Speculation vs. Utility
Beyond infrastructure, Schwartz weighed in on the philosophical debate between Bitcoin and XRP—specifically their value propositions.
He noted that Bitcoin’s value is largely speculative. Its price rises not because of utility in daily payments, but because people believe others will pay more for it in the future. While he acknowledged Bitcoin’s cultural and financial significance, he questioned whether scarcity alone justifies its valuation.
In contrast, XRP was built for utility. With a total supply of 100 billion tokens—compared to Bitcoin’s 21 million—XRP is designed for high-volume transactions, especially in cross-border payments. Its integration with financial institutions through RippleNet highlights its real-world application.
Schwartz dismissed simplistic comparisons based on token supply numbers, calling them contextually meaningless. A larger supply doesn’t equate to lower value if the asset serves a different purpose.
That said, he admitted that Bitcoin could evolve through layers like the Lightning Network, potentially enhancing its payment functionality. Yet even with improvements, Bitcoin’s primary role remains store-of-value rather than medium-of-exchange at scale.
Market Snapshot: XRP in 2025
As of early 2025, XRP trades at $2.59**, reflecting a slight dip of **0.52%** over the past 24 hours. Despite this minor decline, trading volume surged by **6%**, reaching **$5.13 billion. The market capitalization stands at $149.86 billion**, with a fully diluted valuation of **$259.2 billion.
These figures indicate sustained interest and liquidity in XRP, even amid regulatory uncertainty and market volatility. Institutional adoption, ongoing legal developments, and expanding use cases in asset tokenization continue to shape investor sentiment.
Frequently Asked Questions (FAQ)
Is Ripple the owner of the XRP Ledger?
No. While Ripple helped create XRPL, it does not own or control it. The network operates independently with a global set of validators and open-source governance.
Can Ripple manipulate XRP transactions?
No. Transactions on XRPL are validated by consensus across distributed nodes. Ripple cannot alter or reverse transactions unilaterally.
Does XRP have real-world use cases?
Yes. XRP is used for cross-border payments via RippleNet, reducing settlement times from days to seconds. It's also being explored for tokenizing real-world assets (RWAs).
How decentralized is XRPL compared to Ethereum or Bitcoin?
XRPL prioritizes efficiency and scalability over maximum decentralization. While less decentralized than Bitcoin or Ethereum, it offers faster finality and lower costs—making it suitable for enterprise applications.
Can anyone become an XRPL validator?
Yes. The network is open to anyone running a node. However, gaining inclusion in others’ Unique Node Lists requires reputation, uptime, and transparency.
What is trustless bridging, and why does it matter?
Trustless bridging allows assets like Bitcoin to interact with other blockchains without relying on intermediaries. It's crucial for achieving true decentralization in multi-chain ecosystems.
👉 Learn how emerging protocols are building truly trustless bridges across blockchains.
Final Thoughts
David Schwartz’s comments underscore a vital truth: decentralization isn’t just about technology—it’s about governance, incentives, and trust. The XRPL may not be as decentralized as Bitcoin, but it offers a pragmatic alternative focused on performance and usability.
As blockchain evolves, so too must our understanding of what “decentralized” really means. For some networks, it’s absolute autonomy; for others like XRPL, it’s resilient collaboration among independent actors working toward shared goals.
The future of finance may not depend on choosing between centralization and decentralization—but on finding the right balance between them.
This article is provided for informational purposes only and is not intended as investment advice.