Ripple CTO Says Xahau and XRP+ Will Not Diminish the Worth of XRPL and XRP

Ripple CTO David Schwartz addresses considerations that Xahau, the upcoming XRP Ledger (XRPL) sidechain, might displace the unique XRPL itself and damage XRP.

David Schwartz, CTO at Ripple, lately spoke on whether or not the upcoming XRPL sidechain Xahau and its native token XRP+ would diminish the worth of the unique XRPL and XRP.

Schwartz’s feedback got here as a reply to a query from Saul, an XRP neighborhood determine. Saul lately drew an analogy likening XRPL to Nokia and Xahau to Apple. This analogy raises considerations that Xahau might displace the XRPL in dominance like Apple displaced Nokia.

I ponder how David feels concerning the XRPL:Nokia::Xahau:Apple analogy

— Saul 🏴‍☠️ (@uptownsaul) September 3, 2023

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Xahau Does Not Threaten the XRPL

Saul’s analogy sparked an fascinating response from Schwartz, who acknowledged the perceptiveness of the comparability.

I feel that analogy is definitely very perceptive. I bear in mind within the early days of bitcoin everybody thought that no cryptocurrency might ever overtake bitcoin becasue bitcoin had first mover benefit and a technical benefit was inconceivable. …

— David “JoelKatz” Schwartz (@JoelKatz) September 4, 2023

He harkened again to the early days of Bitcoin, the place many believed that its first-mover benefit and open-source nature would render it resistant to competitors. Nevertheless, historical past confirmed a distinct narrative.

Regardless of being a latecomer, Schwartz pointed out that Ethereum adopted applied sciences that had been superior to Bitcoin in some essential features. As a consequence of its entrenched consumer base and resistance to alter, Bitcoin couldn’t readily undertake these improvements. 

Nevertheless, Bitcoin nonetheless appeals to quite a few customers, because it performs as supposed. This case highlights that the worth of a blockchain usually lies in its reliability and stability over time, even when it lags in technical developments.

The Ripple CTO emphasised that newer, smaller chains have the agility to develop and take a look at revolutionary applied sciences with real-world functions with out jeopardizing the steadiness of present Layer 1 chains. 

Whereas present chains can undertake new applied sciences, there are sometimes compelling causes to not, reflecting the fragile stability between innovation and safety.

Schwartz’s most pivotal level was that the proponents mustn’t view the emergence of a brand new chain as a risk to an older one. As an alternative, they need to see it as a chance to increase the blockchain ecosystem. 

In his words:

“Most significantly, I feel the concept that a brand new chain will detract from an outdated chain is a particularly unlikely factor to fret about. We ought to be working collectively to develop the pie moderately than resenting one thing new that may develop the pie for everybody as a result of it takes a slice.”

Xahau and XRP+

Recall that XRPL Labs, the group behind the self-custodial Xumm pockets, released the Xahau Whitepaper final month. The Xahau undertaking and its native token, XRP+, are already making waves within the XRP neighborhood.

One function that might make Xahau stand out is the implementation of Hooks, which introduces sensible contracts to the chain. Whereas it could deliver thrilling developments, it’s essential to do not forget that it isn’t essentially in direct competitors with XRPL.

Schwartz’s remarks name consideration to blockchain evolution, the place older chains can coexist with newer ones, every serving a novel goal and consumer base. 

XRPL’s historical past, infrastructure, and established consumer belief will seemingly guarantee its continued relevance. On the similar time, Xahau and related initiatives can discover uncharted territories and push the boundaries of what’s doable.