Here’s the truth about private versions of Ripple and XRPL; and what’s about XRP fee hike proposal

By Selena 03/5/23 4:43 PM

Ripple is now developing private versions of the XRP Ledger code for CBDC, the so-called “state cryptocurrencies,” according to Matt Hamilton, the company’s former director of developer relations. But, according to the developer, these versions have not yet been released because CBDC’s regulatory framework is still being created.

Sure, maybe they are in production, maybe not. I’ve not seen any evidence they are in production yet. But again, this is irrelevant to the point. Every centralised exchange is a “private ledger”. But the only place XRP actually exists is the main, public, XRP Ledger.

— Matt Hamilton (@HammerToe) March 4, 2023

The developer is unsure whether any CBDC products from Ripple are currently ready. Recall that it was previously stated that Ripple plays a significant role in developing “state cryptocurrencies.” The company is involved in projects to develop digital dollars, pounds, and euros. It is also developing a CBDC with the national bank of Montenegro.

In response to allegations that Ripple has its private chains on which there is a form of private XRP, Hamilton made the comments. According to this hypothesis, the price of XRP varies between the private and public XRPL networks.

There are no private versions of the coin; it only exists in the main public XRPL blockchain. Hamilton claims that any centralized exchange on which XRP is exchanged might be deemed a private XRP Ledger. The creator claimed that a private XRP network was impossible since it would require total network isolation. Once it was open, all pricing discrepancies would be resolved.

Ripple CTO Reacts to XRP Fee Hike Proposal

The idea of raising transaction fees to raise the price of the contentious coin is causing a raging argument within the XRP community.

I answered “yes”, but I don’t think txn fee destruction should be used as an artificial mechanism to try to put upward pressure on XRP price. I think txn fees should reflect the actual cost a txn imposes on the network to more rationally allocate resources.

— David “JoelKatz” Schwartz (@JoelKatz) March 5, 2023

The debate began when Twitter user @Kneteknilch proposed a change to raise transaction fees proportionally to the value of transactions to improve the value of XRP.

The chief technical officer of Ripple, David Schwartz, responded to the suggestion by noting that he concurs that transaction fees ought to represent the true cost a transaction places on the network.

The idea of employing transaction fee destruction as an artificial mechanism to raise the price of XRP was rejected by the creator of the XRP Ledger, though.

Schwartz said that the XRPL’s benefit is high-speed, low-cost transaction confirmation. Yet he still thinks that node operators shouldn’t fund transactions whose worth is less than their whole expense.

Schwartz contends that processing a transaction could destroy value and deter individuals from operating nodes if the transaction fee is less than the true cost of the transaction.

In contrast, there would be unnecessary friction if the fee was more than the cost. Chris Thompson, a Twitter user, suggested that the cost should be sufficiently high to deter a specific transaction. He questioned if it was essential to introduce a complex transaction type to deter its use.

In response, Schwartz said that a better solution to this problem already exists on the XRP Ledger. The node can simply flag the transaction off to stop it from being executed if it is beyond the scope of the node.

The idea to raise transaction fees in order to improve XRP’s price has divided the XRPL community overall. It is unclear at this time if the XRPL transaction cost structure will change as a result of the ongoing discussion.