[1/🧵] A paradigm shift for the XRP Ledger is on the horizon ‼️
It's a future that's:
🔸 Programmable
🔸 Automated
🔸 Compliance-first
Let's take a look at some of the fundamental arguments and work out what this will mean for XRP. 👇
[2/18] — 1⃣ Status Quo —
To date, the XRPL is a so-called “fixed-function” blockchain, which only allows new native features to be added to the XRP Ledger if the on-chain governance process votes in favor of it.
If you're a pessimist, you would call this “permissioned”. 😉
[3/18] — 2⃣ Status Quo —
But there are actually many benefits and advantages that support this approach, e.g.:
🔸 Battle-tested (i.e. Escrow, Paychannel)
🔸 Aggregated Liquidity (CLOB+AMM)
🔸 Automatic Version Upgrades
🔸 Higher Standards (More Audits and Performance Tests)
[1/🧵] There are people out there who still believe that there are ways to clawback XRP on the XRPL. 🤨
While this is NOT possible & is written all over the official documentation, there is one more argument that should hit the nail on the coffin.
The ULTIMATE reason why 👇
[2/14] — Tokens —
Whenever you hear “clawback”, you should automatically think of “issued assets”.
They are fungible and come in many forms and structures:
🔸 IOUs
🔸 Stablecoins
🔸 Multi-Purpose (later this year)
Anyone can issue these kinds of tokens on the XRP Ledger.
[3/14] — Structure —
On the XRPL, all currently issued token holdings exist via so-called “trust lines”, i.e. an accounting relationship between a person holding a token & the issuer.
In other words, something to prevent you from holding a token that you don't want.
The ecosystem broken down to the basics:
🔸 XRP — The Coin
🔸 XRPL — Layer-1 Blockchain
🔸 XRPL Labs — Organization in The Netherlands
🔸 XRPLF — Non-Profit Association in France
🔸 Ripple — For-Profit Company in USA
The XRPL is a decentralized, immutable, censorship-resistant, permissionless DLT that offers several native Layer-1 functions such as AMM, orderbook & tokenization.
The XRPL is NOT Ripple, as Ripple didn't exist when the XRPL was originally released.