XRP Ledger progress to decentralization as third-party validators emerge
Decentralization of XRP Ledger is a process that began at its inception and has been running since then. One of the drawbacks pointed out against the XRP Ledger and its token is that it is not decentralized. When the third party validators on the Ripple network increased, the intensity of argument is diminished.
Since its launch in 2012, XRP Ledger has been operating as a next-generation alternative to the proof-of-work concept that was originally introduced by Bitcoin.
Ripple’s strategy to further decentralize XRP Ledger consists of two components,
1. Diversify validators on XRP Ledger.
XRP Ledger needs to be able to securely run without relying on anyone entity so as to maintain future network reliability and mitigate the risk of a single point of failure. To mitigate single point failure Ripple is expanding a variety of identities, geographic locations, and software platforms, all of which will further mitigate the risk of a single point of failure.
The performance will be monitored against a specific set of criteria, including their consensus agreement rate, uptime, verification of identity and public attestation as more validators join XRP Ledger.
2. Add attested validators to Unique Node Lists (UNLs).
A set of validating nodes that a given individual participant listens to for reliable information about transactions in the XRP Ledger is called as a unique Node List. When a node appears on many participants then it is called as UNLs trusted. It’s these trusted nodes that validate transactions, enable/veto amendments and modify fees. Currently, Ripple provides a default and recommended UNL configured with validating nodes operated by Ripple, and their plan is to systematically replace these nodes with attested third-party validating nodes. Over the course of the next 18 months, for every two attested third-party validating nodes that meet the objective criteria mentioned above, Ripple will remove one validating node operated by Ripple until no entity operates a majority of trusted nodes on the XRP Ledger. [Ripple]
See also: Ripple [XRP] price is plunging despite all the positive initiatives: Why? Can Ripple recover?
For the smooth and easy functioning of the system, Ripple Labs Inc., the company currently managing the XRP Ledger, has hosted validators. This has recently changed.
According to the reports from the XRP charts website, 4 out of 18 trusted validators are the third party. This seems to be the next big step for moving to decentralization. Ripple’s UNL is consists of only 77% of their own validators which implies that the company cannot implement amendments without the help from the third party validators.
In one of Ripple’s blog posts, Ripple stated, “As we continue these initiatives to further decentralize the system, XRP Ledger will inherently become even more resilient…In other words, XRP Ledger will not just meet, but exceed the decentralization level of other public blockchains.”
Sources state that 16 third-party validators are required for Ledger to equal decentralization of coins such as Bitcoin and Ethereum, with 17 required to be more decentralized than them.
Image via Ripple
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