Ongoing Decentralization Debate of the XRP Ledger

Amid ongoing debates about the decentralization of the XRP Ledger (XRPL), Ripple CTO David Schwartz recently offered an intriguing perspective that challenges critics’ misconceptions.

An X user claimed that Ripple maintains a central axis of control over the XRPL. In response, Schwartz provided a thought-provoking hypothetical to demonstrate Ripple’s approach to governance and its impact on the XRP Ledger.

> 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 (@JoelKatz) February 19, 2025

Schwartz challenged his X followers to consider a scenario: “Imagine a large contingent of XRPL users and developers want to add privacy features to XRPL that Ripple believes could harm its business interests.” He posed a pointed question: “What will happen? Do you think you know because I don’t?” This highlighted the uncertainty in a decentralized ecosystem, where stakeholders may have conflicting priorities.

Instead of exerting direct control, Schwartz explained that Ripple’s strategy would primarily rely on persuasion. “But I can tell you one thing: The two tools Ripple would use the most are convincing people that the XRPL is better for everyone without those features and convincing people that at least in this case, what’s good for Ripple is good for XRPL.”

Continues Decentralization Debate

Unconvinced by this explanation, the X user asked whether Ripple recommending its Unique Node List (UNL) might create a centralized system.

Schwartz responded that to resolve the double-spend problem—a core challenge for any digital payment network—a level of scarcity among validators is essential: “Because to resolve the double spend problem, you need something scarce. Otherwise, there would be no way to know when you reached consensus. Consider an attacker creating millions of nodes that just don’t reach consensus with each other.”

As a decentralized, public blockchain, changes to the XRP Ledger that impact transaction processing or consensus must be approved by 80% of the network. Ripple contributes to the network, but its rights are equal to those of other contributors. The network boasts over 150 validators, with more than 35 on the default Unique Node List, of which Ripple operates only one.

Another distinguishing feature of the XRP Ledger network is its opt-in nature. Each participant, directly or indirectly, chooses their UNL. If Ripple ceases operations, participants can shift their UNLs to lists from different publishers.