Ripple’s CTO: DLT’s Are Better Than Any Centralized System
During Money 20/20, Ripple Chief Technology Officer David Schartz has spoken about the potential benefits of Blockchain technology. Schwartz said Blockchain is the right thing for building new payment systems.
Ripple CTO said security and governance are very important elements of Blockchain technology. He first said the Blockchain doesn’t have a single point of failure, as he added:
“Blockchains are secure because every participant in a watching can enforce all the systems rules. When you ask your bank balance, your bank tells you what your balance is and you have to trust them. If they screw up you have to go to the bank to get them to fix it.”
Schwartz then said Blockchain system don’t work the same way as traditional banks. He added the participants at the Blockchain ecosystem are very confident of the storage of their personal pieces of information, as they are said the system is perfectly reliable.
He also said Blockchain systems are very secure compared to the big centralized system that is currently operating in all around the world. Schwartz also gave an example of Youtube as he said:
“YouTube had a two-hour outage a couple of days ago, but people will tell you that centralized databases – it’s a solved problem. We can get five nines of reliability. Anybody came here from a centralized database, does anyone get five nines of reliability? I sure don’t, we don’t. It’s because these systems are complicated enough with complicated failure nodes.”
He also spoke about Bitcoin stating that its system has not faced an outage since 2013 after a bug was fixed. He also mentioned that blockchains are fundamentally much simpler with simple failure modes. He added the same opinion in the case of XRP and Ethereum [ETH] ledgers, explaining that these systems have never had outages.
Next, he said that reliability is a fundamental trait of blockchain technology, which is imperative if the people do not want any single, centralized body to untangle a mess caused in the system.