When you buy through affiliate links in our content, we may earn a commission at no extra cost to you. Learn 
Ripple‘s CTO, David Schwartz, explained how the XRP Ledger can be attacked.
He said the only way to compromise it is to disrupt the global transaction order, which would shut down the entire network.
PoA Consensus Strengthens XRP Ledger
In a recent discussion on The Defiant, Schwartz explained how the Proof-of-Association (PoA) in the XRP Ledger functions, emphasizing its role in validating transactions.
Revisiting @Ripple: New Stablecoin, Airdrops, Network Attacks, and The SEC Casehttps://t.co/9sJguEAYXE
1:04 Founding Story of Ripple
5:20 RippleNet
8:05 $XRP Tokenomics and Incentive Model
12:56 Bad Actors
15:11 Network Attacks
17:55 $XRP Distribution
26:45 Use Cases
39:25… pic.twitter.com/nmT95KNJJL— The Defiant (@DefiantNews) June 3, 2024
Unlike PoW or PoS, PoA ensures transaction order, preventing double-spending. Schwartz emphasized that transaction sequence is crucial, stating:
“Whichever transaction comes first is valid, whichever transaction comes second is invalid.”
While the Ripple CTO disclosed the sole vulnerability of the ledger, he mentioned the lack of incentives for such an attack due to its complexity and low returns. Hence, it ensured no entity could prompt the software to steal users’ XRP.
His insights provide a balanced view of the ledger’s security and vulnerabilities, highlighting the low practical incentives for complex attacks. Therefore, he encouraged XRP users to trust the ledger’s design and remain cautious of emerging risks while benefiting from its efficient and secure PoA protocol.
David Schwartz Reveals Plans to Lure Institutions into DeFi
Schwartz shared insights into Ripple’s latest roadmap for bringing big institutions into decentralized finance (DeFi).
In his recent appearance at the CoinDesk Consensus 2024 conference, Schwartz discussed Ripple’s plan to help traditional financial institutions launch regulated financial products that work smoothly with DeFi ecosystems. He mentioned tokenizing regular assets like loans and securities, making them tradable and manageable within DeFi platforms.
Ripple David Schwartz, talking Institutional DeFi and Innovations at Consensus 2024#XRP #Ripple #consensus2024 pic.twitter.com/P8dIq11jcp
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) May 30, 2024
The Ripple CTO stressed the need for big institutions to join in for crypto to take off, comparing it to the early days of the internet.
He pointed out that the internet first took off with government and military use before having wide applications. Schwartz believes that institutional involvement is key for DeFi to become widely accepted and grow.
David Schwartz FULL INTERVIEW Consensus 2024 !!#Ripple $XRP #Consensus2024
Topics Discusses:
>Institutional Defi
>Tokenized Debt
>Interoperability
>Data Storage, Ai pic.twitter.com/CCeSGu36C0— Andrew X De'Vilbiss (@DrewDeVilbiss) May 30, 2024
In this context, Schwartz said that XRP Ledger and Ripple’s blockchain are well-suited for these applications because of their existing features and abilities.
