Ripple chief technology officer, David Schwartz discussed a wide range of issues related to his company and the blockchain at the SXSW 2019 conference in Austin, Texas. The conference was held from March 8th to 17th.
Schwartz spoke about his cryptocurrency experience in an interview with Business Insider. He recalls that his first encounter with Bitcoin was like “love at first sight”. He first learned about this digital asset in 2011 and since then he has been delighted with it. So was the the charm of Bitcoin over him.
The main reason why David became interested in Bitcoin was in the freedom that the Bitcoin offers. Bitcoin does not need any “central operator”, and therefore it is not surprising that in a short period of time it became popular among investors all over the world.
Many in the Bitcoin community thought that the Proof-of-Work (PoW) protocol is a kind of “magic element”. But the views of David Schwartz, Jed McCaleb (who had already left Ripple), and some other developers turned out to be different. They found that one of the main features of Bitcoin is that information about the state of the system is publicly available and PoW is nothing more than a solution to the problem of double waste.
To solve this problem XRP acquired a different way. The XRP Ledger platform, for making cross-border payments from Ripple, was built differently – without the flaws mentioned by Schwartz and McCaleb in Bitcoin. According to Schwartz, the platform is “really good in that sense.” Although, it is still not clear how this platform works.
Schwartz also spoke about the misconceptions of people about the blockchain and cryptocurrencies. He said “Many believe that the price of a token is a good way to determine how successful a cryptocurrency project will be.”
According to him “Some people think that blockchain technology is very expensive, and that it cannot compete with conventional databases or applications.”
Schwartz also says that in the future the price of XRP will reflect “the success of the ecosystem,” although he “is not sure that the price will always follow reasonable expectations.”