- Vet defends XRPLs decentralized governance model against SWIFT CIOs criticism.
- XRP Ledger operates under neutral shared governance similar to Bitcoin and Ethereum.
- Ripple does not control the XRPL ensuring no single company skews rules.
- David Schwartz emphasizes XRPLs decentralization over Bitcoins proof-of-work.
- Vet highlights misconceptions about XRPs centralization in response to SWIFTs concerns.
Vet, a validator on the XRP Ledger (XRPL), recently responded to comments made by Tom Zschach, Chief Innovation Officer at SWIFT. Zschach questioned the resilience of blockchain networks, claiming that surviving lawsuits does not indicate robustness. He also stated that institutions prefer neutral, shared governance for financial systems.
Vet Defends XRPLs Decentralized Governance
Vet quickly countered Zschachs remarks, defending the decentralized governance structure of the XRP Ledger. He explained that XRPLs operation is similar to Bitcoin and Ethereum, where hundreds of independent nodes ensure no single entity controls the system. The XRPL operates under neutral, shared governance, Vet said, addressing concerns that institutions could be tied to a competitors network.
Vet emphasized that Ripple does not control the XRPL. While Ripple is heavily associated with XRP, it is not the entity governing the ledger. He pointed out that no single company can alter the rules of the XRPL to benefit itself, which sets it apart from centralized systems.
Ripples Commitment to Compliance and Neutral Governance
Vets response was triggered by a professionals comment on Ripples compliance efforts. Ripple has a long history of working with regulators and setting compliance standards in the industry. He argued that the XRP Ledgers governance model is inherently neutral, contrasting with SWIFTs centralized system, which may not align with the decentralization desired by institutions.
Ripples Chief Technology Officer, David Schwartz, and other experts have repeatedly corrected misconceptions about XRPs centralization. Schwartz has explained that the XRP Ledger is more decentralized than proof-of-work blockchains like Bitcoin. This position bolsters Vets argument that the XRPL provides a more secure and neutral platform for global financial transactions.
SWIFT Faces Challenges in Adapting to New Technologies
SWIFT, the traditional leader in cross-border payments, now faces pressure from decentralized blockchain networks like XRPL. As institutions explore digital asset adoption, governance models become a key factor in choosing blockchain solutions. Vets comments highlight that dismissing XRPLs governance structure reflects a misunderstanding of decentralized networks.
The XRP Ledgers decentralized model reassures institutions that they are not entrusting operations to a single corporate entity. Vets response suggests that SWIFTs leadership might not fully grasp the workings of decentralized networks. The debate signals the growing importance of governance in the future of cross-border payments.
