Crypto: An Expert Questions The Real Utility Of XRP

The XRP, the emblematic cryptocurrency of Ripple, is the subject of frontal attacks on its structure and philosophy. A blockchain expert questions its alleged decentralization and accuses the protocol of authoritarian drift. This criticism rekindles a central debate in the industry: what is a truly decentralized blockchain? Ripple, for its part, defends its design and claims resilience and efficiency. As the pressure mounts, XRP finds itself at the heart of an ideological clash that could redefine the criteria for acceptability in the crypto universe.

An architecture accused of centralization

Researcher Justin Bons, founder of Cyber Capital, has published a series of scathing criticisms against the XRP Ledger, which he describes as “centralized“.

According to him, the Ripple network strays from the standards of decentralization and relies on a list of pre-approved nodes (UNL), a method that, in his eyes, “is in no way comparable to a truly distributed consensus system.“

He claims that the lack of incentive mechanisms for validators makes the protocol unattractive and vulnerable, distancing XRP from the proven security models used by major public blockchains.

These technical accusations revolve around several key points that Bons details in his publications:

• Use of a unique node list (UNL): only validators on this list can participate in block validation, which limits the distribution of power;
• Lack of rewards for validators: unlike Bitcoin or Ethereum, the protocol does not offer native compensation, thereby reducing incentives to contribute to the network’s security;
• Risk of control by Ripple Labs: the current structure would, according to Bons, allow disproportionate influence from Ripple on the network;
• Proximity to proof of authority: Bons believes that the mechanism used by XRP “resembles more of a centralized system than a decentralized blockchain“.

In the face of these criticisms, the debate over the true nature of XRP is intensifying, prompting the community to reconsider how decentralization is defined and perceived in so-called “enterprise” blockchain infrastructures.

Expanded criticisms and upcoming innovation challenges

This challenge to the utility and structure of XRP goes beyond technical aspects. The famous investor Jason Calacanis went further and described XRP as a “centralized controlled security“.

Moreover, he expresses doubts about the possibility of seeing an ETF based on XRP approved by U.S. regulators. “An XRP ETF would drive the SEC crazy“, he quipped. He hinted that the structure of XRP presents fundamental compliance issues with stock market standards.

On another front, the lead developer of the XRP Ledger, Wietse Wind, acknowledged that the network is lagging behind its direct competitors, notably Ethereum, in programming and deploying smart contracts.

He is betting on the introduction of features called “Hooks“, currently in development, to equip the XRP Ledger with capabilities similar to those of EVM-compatible blockchains. This innovation could help XRP bridge part of its technological gap and enhance its attractiveness to developers.

These statements raise conflicting perspectives. On one hand, growing pressure from the community for better transparency and clearer alignment with decentralized finance standards. On the other, tangible efforts from Ripple and its collaborators to evolve the XRP Ledger towards a more flexible and open environment. It remains to be seen if these adjustments will be enough to convince skeptics and secure XRP a lasting place among the major usable cryptos. The debate is now launched, and its fallout could reshape the landscape of enterprise blockchain infrastructures.