Why do many people believe XRP is centralized?
The confusion mainly arises from Ripple owning about 40% of the total XRP supply. This leads many to believe that Ripple controls the entire network. However, that is a misunderstanding of how XRP operates. Owning many Tokens does not mean controlling the protocol.
On June 26, top cryptocurrency lawyer John E. Deaton asserted:
"75K XRP Holders from 143 countries around the world are clear evidence of the network's decentralization. People often confuse Tokens with the network."
He emphasized that owning a large amount of Tokens does not equate to manipulating or controlling the protocol.
Ripple's legal victory clarifies the status of XRP
The debate over the centralization of XRP intensified when the SEC sued Ripple in 2020, accusing it of selling XRP as unregistered securities. After nearly 5 years of legal disputes, on May 8, 2025, Ripple achieved a favorable outcome, facing only a minor penalty.
The court confirmed that XRP is not a security when traded on the secondary market, reinforcing the decentralization of this digital asset. This decision has created legal clarity and increased investor confidence.
Why is XRP technically decentralized?
In addition to legal clarity, the technical structure of the XRP Ledger also affirms decentralization through the following factors:
1. Independent Validators
The XRP Ledger operates on a consensus model with over 150 independent validators.
Ripple only controls one validator, which is not enough authority to change or manipulate the network.
2. No centralized mining
XRP does not use a proof-of-work (PoW) algorithm like Bitcoin or Ethereum.
This mechanism eliminates control from mining groups and ensures that all validators participate equally.
3. 80% consensus required to change
All updates to the XRP Ledger must be continuously agreed upon by at least 80% of validators for two weeks.
This strict standard prevents Ripple from unilaterally controlling or imposing changes.
Ripple CEO: Utility surpasses the ideal of decentralization
Brad Garlinghouse, CEO of Ripple, emphasized that "decentralization is not the only measure." He focuses on criteria regarding the utility, transparency, and security of the network.
Although Ripple owns a large amount of XRP, the company does not control the rules or the validation process on the XRP Ledger. Real power belongs to the diverse and global community of validators.
Conclusion
The long-standing debate over the centralization of XRP is gradually subsiding thanks to real-world evidence, legal clarity, and increasing participation from the global community. With 75,000 Holders from 143 countries, over 150 independent validators, and a stringent consensus process, XRP affirms its status as a truly decentralized asset. Ripple represents XRP, but it is not the puppet master behind the scenes.
Source: https://tintucbitcoin.com/john-deaton-khang-dinh-xrp-phan-quyen/
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