XRP was not lost due to a technical error, but rather a misunderstanding stemming from early transaction records being lost.
Ripple has kept most of the XRP supply intact, and the lost transactions only had a minor effect and did not alter the total amount of coins currently.
MAIN CONTENT
XRP initially had no market value, as coins were distributed in random amounts.
The initial transaction records were lost due to the development process and ledger resets.
The entire current balance of XRP remains transparent and can be traced and publicly verified.
XRP Missing: A True Story or Just a Misunderstanding?
Ripple CTO David Schwartz asserts that there was no actual disappearance of XRP, only a few early transactions lost due to ledger resets during development. The number of coins involved is very small compared to the total of 100 billion initial coins.
Critics argue that 534 XRP transactions in the premine supply from 2012 have disappeared, raising questions about Ripple's transparency. However, according to Schwartz, Ripple's accounts are clearly recorded on the blockchain and the source of funds can still be accurately traced.
"All balances are visible, and users can know exactly whether the funds originated from the founders of Ripple or not."
David Schwartz, CTO Ripple, 2023, Decrypt
At the time when the 'loss of XRP' was said to occur, Ripple held about 99.9% of the total supply, so the amount of coins affected was very small.
XRP had no value when it was first issued.
Schwartz emphasizes that XRP at launch in 2012 had virtually no market value. When distributing XRP, Ripple often issued random amounts of coins, such as 35,000 coins without calculating a specific value.
The process of developing the protocol along with multiple ledger resets to adapt to technical changes is normal. At that time, the development team could not know that the lost records would later become fixed data.
This explains why there was a decrease in initial transaction information, not due to an error or intentional concealment.
Is XRP being destroyed or withdrawn from circulation?
According to Schwartz, XRP was not destroyed or lost from supply. Although the first transaction record was lost, the account balance on the ledger always accurately reports the amount available.
Every XRP coin can be traced back to its origin, especially coins from the premine created by Ripple's founders.
The only thing that is no longer present is the complete transaction history from the early period, which could be lost again if there is another ledger reset.
The reasons behind the 'missing XRP' and current transparency.
David Schwartz points out that the loss of transaction data due to early ledger resets is normal during blockchain development. The amount of coins involved is negligible and was valueless at that time.
Currently, the XRP supply held by Ripple remains publicly transparent, and anyone can check it through public blockchain data.
"This misunderstanding stems from the history of blockchain technology, not a sign of wrongdoing or coin reduction."
David Schwartz, CTO Ripple, 2023, Decrypt
Frequently Asked Questions
Did XRP really get lost due to a technical error?
No, only a few initial transactions lost data due to ledger resets; the coins were not destroyed or disappeared from supply.
Can the total amount of XRP currently held by Ripple be verified?
Yes, all balances and coin origins are transparent and can be traced on public blockchain data.
Why was there a decrease in transactions during the early phase?
Due to multiple ledger resets during development to update the protocol, this caused a portion of the initial transaction history to be lost.
Did XRP have market value from the beginning?
No, in 2012 XRP was nearly worthless, Ripple distributed coins in random amounts without considering their value.
How did the initial XRP transactions affect the current supply?
The impact was very small because Ripple still retained nearly the entire supply of 100 billion coins, with the lost transactions constituting a very small portion.
Source: https://tintucbitcoin.com/cto-ripple-noi-ve-35-000-xrp/
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