Ripple has a chance to fix its closed system after legal victory

by Sep 13, 2023CryptoNews0 comments

Ripple Labs created its XRP token on a centralized system. But with legal action against Ripple nearing an end, it could move toward a more open platform. Eric Chen 1 minute ago Ripple had a chance to fix its closed system after a legal victory Ripple Labs designed its XRP token to replace the outdated SWIFT system of cross-border payments. And there are good reasons to do so, as anyone who has experienced the frustration of paying $45 for an international wire transfer that took four days to reach its intended recipient can attest. Offering a faster process, free of the excessive and unpredictable fees associated with SWIFT transfers, Ripple aimed to build a crypto product that closely resembled the legacy financial ecosystem — a system ready for everyday transactions. Related: Ripple verdicts could spark a new bull market — or more malaise This goal defines its product, leading it to undertake the challenging task of building an entire technology stack from scratch. However, this proved to be a daunting task. Beyond the technological challenges, there were various processes and unexpected areas of friction, especially in operating across numerous jurisdictions. The endeavor likely exceeded Ripple’s initial estimations, forcing it to make adjustments and sacrifices in order to reach its goals. One of the main compromises Ripple made was to create a more centralized structure, which was fundamentally different from other crypto projects. This decision proved to be a double-edged sword. While this configuration initially enabled swift and economic transactions, it inadvertently deterred a broader Web3 developer community from participation. This strategic choice limited individual engagement, creating an environment that felt less than welcoming. #XRPCommunity #SECGov v. #Ripple #XRP Counsel for Ripple has informed Judge Torres that Ripple is available for trial anytime in the second quarter of 2024. pic.twitter.com/JoZZlxcJSr — James K. Filan (@FilanLaw) August 23, 2023, The centralized structure also naturally led to the creation of a closed system, which inherently prevented Ripple from building an indispensable, application-layer foundation.

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