Chiefs of Ripple discuss why native staking sounds like a great idea, but “if it ain’t broke, don’t fix it”.
A deep dive into Ripple’s XRP Ledger explains why the network could reap many benefits if transitioned from Proof of Association (PoA) to Proof of Stake (PoS). Staking as a method to secure the blockchain & stay attractive to new investors has worked across many top chains, including Ethereum (ETH) & Cardano (ADA).
Ripple Exec Pitches Native XRP Staking Idea
A similar idea was freshly introduced by Ripple’s Chief Of Technology (CTO) Officer David ‘JoelKatz’ Schwartz, who remarked that XRP Ledger has been in the game since 2012, way before the boom of decentralized finance (DeFi), global market tokenization & the Ripple price-tracking exchange-traded funds (ETFs).
Mr. JoelKatz argued that a staking model should arrive over time, the computer virtuoso thinks XRP Ledger should definitely explore new functionality in the DeFi space, hinting at staking XRP. One of his key ideas involves a bi-folded consensus with 16 validator nodes delegated by the outer layer, determined by staking & slashing.
Alternative XRP Upgrade Tackles DeFi Revamp
Meanwhile, the second XRP Ledger upgrade idea revolves around paying for Zero-Knowledge (ZK) Proofs in garnered fees on the network, while keeping the consensus as originally intended. This is possible due to the high trading volumes, often breaching $10 billion daily with the help of cross-border markets.
Presently, DeFi protocols like Firelight, Flare, MoreMarkets, Axelar & Doppler Finance offer staking yield on a wrapped version of the Ripple coin (XRP). Beyond that, native DeFi capabilities would likely bring unprecedented interest in XRP Ledger’s long-term holding natively on a self-custodial crypto wallet.
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