Recent insights from Ripple’s leading engineer highlight a shift in the financial landscape as more payment processors and stablecoin entities begin to create their own blockchain networks, emphasizing the growing recognition of blockchain as a fundamental element of financial infrastructure.
Ripple’s Chief Technology Officer, David Schwartz, expressed this shift in a detailed post on X, where he noted Ripple’s long-term commitment to developing the XRP Ledger over the past 13 years. He believes these developments represent a broader trend of integrating blockchain technology into the core of financial operations.
The Dichotomy of Blockchain Networks
Schwartz underscored an important distinction between blockchain networks that are governed by a limited number of entities and those that maintain an open framework. Many emerging platforms are utilizing permissioned validators, which can centralize control. This arrangement may enhance regulatory compliance, but can compromise the network’s global accessibility and resilience.
In contrast, the XRPL remains decentralized and open by default, while also providing optional permissioned features that cater to regulatory requirements.
The rise of independent blockchains by payments and stablecoin firms indicates a collective recognition that blockchain is essential to modern finance. This aligns perfectly with our vision for XRPL as core financial infrastructure.
— David ‘JoelKatz’ Schwartz (@JoelKatz) August 13, 2025
He highlighted several technical advantages of the XRPL, such as its low and consistent transaction fees, which do not necessitate a separate gas token. Users can transact using XRP, which functions as a bridge asset for international payments, enhancing the ledger’s utility for consistent payment processes.
These practical aspects are crucial for institutions considering the transition to on-chain transactions.
The Emergence of Proof-of-Authority
Recent analyses suggest that many new chains are adopting concepts similar to those found in the XRPL, particularly features like deterministic finality and the consensus mechanism referred to as Proof-of-Authority (PoA).
Schwartz interprets this trend as a sign that the industry is increasingly prioritizing reliable and predictable settlement processes for financial transactions. He noted that XRPL’s consistent updates and enhancements have played a pivotal role in fostering trust and increasing user adoption over time.
The Challenges of Ecosystem Development
Schwartz articulated that while launching a blockchain is a significant milestone, building trust, achieving liquidity, facilitating genuine use cases, and attracting developers requires more extensive efforts. He emphasized that cultivating an ecosystem that appeals to institutions necessitates ongoing dedication beyond the initial launch.
The strategy for XRPL has been to maintain a public base ledger while also developing tools that institutions may utilize for added control when necessary.
With anticipation for the future, Schwartz looks forward to upcoming upgrades of the Ripple XRPL, forecasting enhancements that will elevate programmability, expand liquidity, and introduce compliance-friendly options for major stakeholders.
Featured image provided by L&T EduTech; chart data sourced from TradingView.
