<

Ripple CTO David Schwartz: Stablecoins should be created on XRP Ledger

RippleNet has been in substantial development ever since it was created in 2012. System users have long been able to conduct transactions on a decentralized ledger – XRP Ledger. They will soon be able to take advantage of an online feature, which will allow them to cast asset-backed tokens like stablecoins on the XRP ledger.

Ripple is adding new features to the company’s XRP Ledger

According to a video released by Ripple last month, Chief Technology Officer (CTO), David Schwartz, said he is working on adding new features to the company’s cryptocurrency ledger. In addition to improvements to the core consensus of the group, CTO has stated in the past not to develop one of the popular features of Blockchain.

He shared:

“Proof-of-Work is a technological dead-end.”

ripple-cto-david-schwartz-stablecoins-should-be-created-on-xrp-ledger

David Schwartz, Chief Technology Officer (CTO)

A feature that Ripple can reveal will allow third parties to launch other third-party cryptocurrencies on the XRP system. The details of this feature have not been released yet, but Schwartz mentioned it could be used to introduce fixed-value tokens such as stablecoins to the ledger.

He stated:

“One of the features that I think is very interesting is a feature that allows people to launch – well, stablecoins are specific use cases, but it’s not just stablecoins – basically assets tied to some outside value.”

How will new RippleNet features stand out among other blockchains?

RippleNet has long provided safe, convenient, and easy-to-use wallets for cryptocurrency XRP holders, and their ledger system features can be expanded.

Other Blockchain-based networks have been able to allow their users to run stablecoins. However, Schwartz teased that the Ripple feature is particularly exciting because ledger mechanisms guarantee liquidity.

The number of companies in other countries joining the network and adopting Ripple’s technology has increased. As the business grows, Ripple has invested heavily in other transmission networks like MoneyGram. Focusing on developing this feature, rather than other elements, may create more new facilities.

What is the relationship between tweets and XRP prices since 2018?

XRP is one of the most mentioned cryptocurrencies on social media platforms, especially Twitter. There is a relationship between the number of daily tweets referring to Bitcoin and its transaction volume. Therefore, it is highly likely that the number of tweets referring to XRP also affects its size or profitability.

The number of tweets referring to XRP has been relatively stable over time, with the annual average since 2018 being similar. In 2018, the average daily tweet referring to XRP was 5,937 average daily tweets. Meanwhile, in 2019, the average number of daily tweets decreased slightly to 5,364 tweets. However, in January of this year, there was a smaller average number of tweets (5,001 tweets) with a spike – 6,919 tweets – on January 6, the day the price of XRP increased by more than 12%.

Recently, the average number of tweets observed in February has increased to 6,429 daily tweets, which is much higher than the number of tweets seen in previous periods.

ripple-cto-david-schwartz-stablecoins-should-be-created-on-xrp-ledger

Daily tweets from January 2018 to February 2020

Following a trend with a higher average in February, the correlation between the number of daily tweets and the price of XRP in 2020 is the highest since 2018 at 62%. Moreover, the relationship between these two variables in this month has the same value at 60%, much higher than January (12%).

However, this relationship has been much lower in previous years: In 2018, the correlation between the number of tweets and XRP price was set at 35%, while in 2019, it showed almost no correlation. Mandarin – 7%.

A 0% correlation means that XRP returns and the number of unrelated tweets in any way. A 100% correlation means that XRP and the number of tweets move entirely in the same direction, while a 100% correlation means that they are inversely related.

XRP daily price from Jan.1, 2020 until Feb.18, 2020.

XRP daily price from Jan.1, 2020 until Feb.18, 2020

When it comes to the relationship between the number of tweets and daily XRP volume, a much higher influence is detected. Any year analyzed (2018, 2019, 2020) shows a significant relationship between these variables. The strongest effect occurred, again, in early 2020 – when the number of daily tweets would increase by 1%, the volume of XRP would increase by 1,215% the same day. This relationship is slightly lower in 2019 (0.916%) and in 2018 (0.926%).

Moreover, the relationship between the number of daily tweets today and the volume of XRP tomorrow is also very significant over the years, although it is slightly lower than the values ​​observed for the same effect. during the day.

Once again, 2020 sees the strongest relationship – as the number of daily tweets will increase by 1%, the volume of XRP tomorrow will increase by 0.972%. In 2018 and 2019, this relationship is set at 0.741% and 0.881%, respectively.

Read more:

Follow us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like

LATEST NEWS

LASTEST NEWS