XRP Has a Privileged Role in XRPL, Ripple's CTO Explains Key Advantages 🚀🚀
The unique value of XRP in the XRPL clarified by Ripple's CTO as the ecosystem diversifies
Ripple's Chief Technology Officer, David Schwartz, shared detailed insights on XRP and the XRP Ledger (XRPL) on June 4 through the social media platform X, providing a comprehensive explanation of the unique dynamics between the native token and the broader protocol. In response to a concerned user about whether the focus on XRP might be misplaced given the expanding ecosystem of the ledger, Schwartz outlined the key architectural elements that support both the diversity and the central function of XRP. He wrote:
The XRPL is more than just XRP. There are stablecoins, there will be tokenized real-world assets, loans of all kinds. A DEX does not operate with a single asset.
Schwartz emphasized that despite the growing support of the XRPL for various financial instruments, XRP maintains a structurally privileged role. He explained: "But XRP has a privileged place in the XRPL. It is the only asset that any account can receive. It is the only asset without a counterparty. The search for paths first verifies the liquidity of XRP. The autobridging makes offers to and from XRP more likely to be taken. It is the only asset that can be used to pay transaction fees." These distinctions, he noted, are deeply integrated into the functionality of the ledger and enhance the effectiveness of XRP as a bridge asset in decentralized trading and payment workflows.
The Ripple executive concluded his remarks with a reflection on the complexity of linking the utility of the XRPL to the market value of XRP:
The question to consider is how much value the XRPL can generate and to what extent that can translate into the value of XRP.
