Australian computer scientist Craig Wright, who asserts himself to be Bitcoin creator Satoshi Nakamoto, recently criticized Ripple and its practices, raising significant concerns about the company’s technological contributions and business strategy.
Wright’s criticism centers on Ripple’s cross-border payment system, which he argues underperforms when compared to traditional banking infrastructure.
According to Wright’s assessment, Ripple’s payment system operates at speeds inferior to SWIFT, the established global network used by financial institutions for inter-bank communications.
He emphasized that despite Ripple’s decade-long presence in the blockchain industry, the company has failed to demonstrate meaningful technological advancement or substantial improvements to global commerce.
The controversy extends to XRP, as Wright categorically dismissed the digital asset as lacking fundamental value, characterizing it as primarily driven by speculative trading rather than practical utility.
His evaluation suggests that the token serves more as a vehicle for short-term trading opportunities than a legitimate advancement in financial technology.
These criticisms came back and forth with Ripple’s Chief Technology Officer (CTO), where another user argued that Ripple has historically relied heavily on XRP sales for revenue and claimed the company would never have become a billion-dollar company without those sales.
Schwartz’s Response
David Schwartz, Ripple’s Chief Technology Officer, addressed these concerns by acknowledging that the company’s financial strategy may have influenced certain business decisions. He reflected on the company’s past choices, noting that their revenue from XRP might have led to “suboptimal choices” in some instances.
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However, Schwartz also highlighted a positive aspect of their financial position. He explained that Ripple’s strong revenue stream from XRP enabled the company to maintain distance from initial coin offerings (ICOs) and meme coins which may have been problematic.
While acknowledging that entering these markets could have generated substantial profits, Schwartz emphasized that their financial stability allowed them to focus on their core business objectives.
Wright continued questioning Ripple’s contributions to the blockchain industry, advocating for solutions that prioritize transaction scalability. He referenced Bitcoin SV (BSV) as an example of innovation in this direction, claiming it has achieved the capability to process millions of transactions per second, though these claims remain subject to industry verification.
He closed his statement, writing, “What is your legacy?” He did not acknowledge Schwartz’s comments or Ripple’s contributions despite the company’s major global partnerships and advancements in blockchain technology through XRP and its upcoming RLUSD stablecoin.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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