1/25) Ripple is centralized & permissioned, contrary to the claims made by its executives
XRP is misleading investors by lying about its decentralization
The foundation has total control over the network!
Attracting retail buyers with such false claims is straight-up fraud! ⚠️
XRP is misleading investors by lying about its decentralization
The foundation has total control over the network!
Attracting retail buyers with such false claims is straight-up fraud! ⚠️
2/25) XRPs consensus is based on UNLs (Unique Node Lists)
Literal centralized lists of trusted nodes released by single parties, including the foundation...
XRP is not based on PoS or PoW, but PoA (Proof of Authority)
Yet they claim to be more decentralized than BTC & ETH...
Literal centralized lists of trusted nodes released by single parties, including the foundation...
XRP is not based on PoS or PoW, but PoA (Proof of Authority)
Yet they claim to be more decentralized than BTC & ETH...
3/25) This is all backed up by XRPL's own documentation:
You will be hard-pressed to find any researcher outside of XRP to call this design "decentralized"
Yet, they are fooling the masses
Even if nodes outside of approved lists are untrusted & do not participate in consensus!
You will be hard-pressed to find any researcher outside of XRP to call this design "decentralized"
Yet, they are fooling the masses
Even if nodes outside of approved lists are untrusted & do not participate in consensus!
4/25) However, users can modify their own UNL, choosing who to trust
The nuance in the language here is subtle but immensely important
Truly decentralized cryptocurrencies are "trustless", in that ZERO "trust" is required
Choosing who to trust is not the same as trustlessness!
The nuance in the language here is subtle but immensely important
Truly decentralized cryptocurrencies are "trustless", in that ZERO "trust" is required
Choosing who to trust is not the same as trustlessness!
5/25) This means that XRP is not trustless at all!
To make things even worse:
If there is insufficient overlap between your UNL & the rest of the network; you will get kicked off!
According to their own docs; a 90% overlap is required to prevent forking; resistance is futile!
To make things even worse:
If there is insufficient overlap between your UNL & the rest of the network; you will get kicked off!
According to their own docs; a 90% overlap is required to prevent forking; resistance is futile!
6/25) This all means that in practice;
Direct permission is required from the XRP foundation to participate in consensus
That is about as centralized as it gets when it comes to blockchain design...
We could end the conversation there, but let's dig into these UNLs some more:
Direct permission is required from the XRP foundation to participate in consensus
That is about as centralized as it gets when it comes to blockchain design...
We could end the conversation there, but let's dig into these UNLs some more:
7/25) We have determined that UNLs are trusted third parties ultimately chosen by the XRP foundation
This is reinforced as we dig deeper into these UNLs:
For the longest time, there was only one UNL;
The dUNL, which is hosted by the foundation, the dUNL is hardcoded as default
This is reinforced as we dig deeper into these UNLs:
For the longest time, there was only one UNL;
The dUNL, which is hosted by the foundation, the dUNL is hardcoded as default
8/25) However, this list is not static but dynamic
Based on a web address hosted by the XRP foundation...
This means they can instantaneously change the validator list without a moment's notice in a totally centralized fashion!
Kicking out anyone who goes against the authority
Based on a web address hosted by the XRP foundation...
This means they can instantaneously change the validator list without a moment's notice in a totally centralized fashion!
Kicking out anyone who goes against the authority
9/25) Over time, two more "official" UNL lists were added (however, Coil went under)
This leaves us with two UNLs on this day, the dUNL & the XRPLF
Who are both directly funded by the XRP foundation
This adds another layer of de facto control over the network; let me explain:
This leaves us with two UNLs on this day, the dUNL & the XRPLF
Who are both directly funded by the XRP foundation
This adds another layer of de facto control over the network; let me explain:
10/25) Blockchains allow for disparate parties who do not trust each other to coordinate
All thanks to the underlying incentive mechanism (PoS or PoW)
Yet, XRP has no block reward & no incentives; it is purely based on trust
So how do different UNLs coordinate with each other?
All thanks to the underlying incentive mechanism (PoS or PoW)
Yet, XRP has no block reward & no incentives; it is purely based on trust
So how do different UNLs coordinate with each other?
11/25) XRPs claim rests on the idea that disparate parties can spontaneously organize around new UNL lists
Without the before-mentioned incentive mechanisms...
Clearly, that is nonsense, as this was a completely unsolved problem before blockchain!
New UNLs cannot coordinate!
Without the before-mentioned incentive mechanisms...
Clearly, that is nonsense, as this was a completely unsolved problem before blockchain!
New UNLs cannot coordinate!
12/25) Since if new UNLs cannot coordinate, it means the foundation has de facto total control
Control over validators equals control over the network!
Giving permission to universities & companies to run nodes is precisely what a permissioned blockchain federation looks like!
Control over validators equals control over the network!
Giving permission to universities & companies to run nodes is precisely what a permissioned blockchain federation looks like!
13/25) In every other chain, you cannot choose your validators, as they are trustless & permissionless
This is why validators can be anonymous & it does not matter
As it is secured by crypto-economic game theory instead of trust
That is what makes XRP fundamentally different
This is why validators can be anonymous & it does not matter
As it is secured by crypto-economic game theory instead of trust
That is what makes XRP fundamentally different
14/25) XRP is not a cryptocurrency at all
As this is neither PoS nor PoW, I am arguing it is a form of PoA, as what else could it be?
Consensus algorithms require a validating mechanism, clearly, trust underpins this system, not stake or work & therefore:
XRP is a form of PoA!
As this is neither PoS nor PoW, I am arguing it is a form of PoA, as what else could it be?
Consensus algorithms require a validating mechanism, clearly, trust underpins this system, not stake or work & therefore:
XRP is a form of PoA!
15/25) PoA systems always have a central authority that appoints the validators
Well, what about the fact that there are currently two "official" UNL lists?
Surely that disproves my assertion that different UNLs cannot coordinate
This is where things start to get really crazy:
Well, what about the fact that there are currently two "official" UNL lists?
Surely that disproves my assertion that different UNLs cannot coordinate
This is where things start to get really crazy:
16/25) On closer inspection, all of the UNLs are actually identical to each other!
With the same validator sets!
Further proving that the foundation in practice has total control over the XRP network!
Credit goes to @ScamDetective5 for this mindblowing discovery in 2022
With the same validator sets!
Further proving that the foundation in practice has total control over the XRP network!
Credit goes to @ScamDetective5 for this mindblowing discovery in 2022
17/25) This screenshot was taken 2 years ago, but I confirmed that this is still the case now
This proves that new UNLs cannot coordinate with each other!
Thereby, forcing the foundation's list to become the de facto list
As all UNLs have to comply or risk getting forked off!
This proves that new UNLs cannot coordinate with each other!
Thereby, forcing the foundation's list to become the de facto list
As all UNLs have to comply or risk getting forked off!
18/25) This also allows the foundation to carry out censorship if it were compelled to do so
As they have such a high degree of control!
This is very different from how cryptocurrencies are supposed to work!
Explaining why it only takes 20% of validators to halt the network...
As they have such a high degree of control!
This is very different from how cryptocurrencies are supposed to work!
Explaining why it only takes 20% of validators to halt the network...
19/25) There are also no rewards for running a trusted validator
Unlike PoW or PoS, where the cost of attack mirrors block reward to miners/stakers
This is why the measure of decentralization is highly related to this reward
Over XRP, this measure of decentralization is zero!
Unlike PoW or PoS, where the cost of attack mirrors block reward to miners/stakers
This is why the measure of decentralization is highly related to this reward
Over XRP, this measure of decentralization is zero!
20/25) I have researched XRP since the early days
I distinctly remember the trade-off in decentralization was recognized
This has gradually shifted as the community & leadership became more extreme in their claims
I do not say this to belittle investors but to empower them! 🦾
I distinctly remember the trade-off in decentralization was recognized
This has gradually shifted as the community & leadership became more extreme in their claims
I do not say this to belittle investors but to empower them! 🦾
21/25) To help break out of the XRP echo chamber & stop being someone else's exit liquidity
As XRP had a shocking pre-mine of 99.8%!
This makes it one of the most unfair distributions of all time
As no new XRP is created, all new circulating XRP is bought from the founders!
As XRP had a shocking pre-mine of 99.8%!
This makes it one of the most unfair distributions of all time
As no new XRP is created, all new circulating XRP is bought from the founders!
22/25) I have always been fascinated by early conversations around decentralizing Ripple
Pretending XRP is permissionless is not the right answer
The real solution lies in adding PoS to replace the UNL list!
Transforming XRP into a more conventional decentralized blockchain...
Pretending XRP is permissionless is not the right answer
The real solution lies in adding PoS to replace the UNL list!
Transforming XRP into a more conventional decentralized blockchain...
23/25) They could also simply just admit that a spade is a spade, I would take no issue with that
However, pretending to be something you are not & using that lie to attract ignorant retail investors is wrong!
That is where we need to draw a line as an industry & self regulate!
However, pretending to be something you are not & using that lie to attract ignorant retail investors is wrong!
That is where we need to draw a line as an industry & self regulate!
24/25) XRP can maybe bribe or fool the SEC for now, but they cannot fool us; the crypto natives
With all due respect to @JoelKatz; it does not matter how complex & deep the rebuttal is...
It does not change these simple facts; that XRP is totally permissioned & centralized now!
With all due respect to @JoelKatz; it does not matter how complex & deep the rebuttal is...
It does not change these simple facts; that XRP is totally permissioned & centralized now!
25/25) If you truly care about XRP, take this very seriously
As within this critique lie solutions that can help XRP succeed;
Either through honest centralization or decentralization
As the truth sets us free; leave or apply pressure for change; as nothing is beyond redemption
As within this critique lie solutions that can help XRP succeed;
Either through honest centralization or decentralization
As the truth sets us free; leave or apply pressure for change; as nothing is beyond redemption
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