Ripple CTO David Schwartz recently shared a detail blog post on a content monetization platform Coil wherein he suggested a couple of new ideas for the future of XRP ledger to the crypto community.
David Schwartz states that the firm is keenly working on a ‘number of possible features and design changes that could be introduced to the XRP Ledger”, and said that they’re seeking inputs from the community to implement these features.
Among the possible enhancements to the XRP Ledger, David included Consensus mechanism, Performance, resource reduction, improved network reliability, and XRP- collateralized Stablecoin.
Particularly, Stablecoin is a cryptocurrency where the price of the coin is pegged to the fiat currency, usually the US Dollar. However, Ripple CTO suggested the creation of a stablecoin that is collateralized with the XRP cryptocurrency. Unlike Stablecoin pegged by fiat, David’s view is to create stablecoin pegged to XRP which means if one wants to trade such stablecoin, they can do so with the equivalent amount of value in XRP. He clarified his view as follow;
“The key distinguishing property of this proposal is that the stablecoin is always redeemable for XRP on the ledger from the collateral pool,”
The model looks much similar to DAI stablecoin, built on top of Ethereum blockchain and collateralized with ETH cryptocurrency. However, how far the idea of XRP collateralized stablecoin well received by the community is still a matter of time because, David continued adding that the system isn’t perfectly decentralized, elaborating;
“Some organization or federation still must supply the price the asset is pegged to continuously or the stablecoin will freeze,”
On the other side, the trading value of XRP is falling apart. There seem no positive signs of recovery – neither with the new features nor with the announcement of new partnership nor with the acquisition deal by parent company Ripple. At the time of reporting, XRP price is briefly rising 0.46 percent within the past 24 Hrs with the trading value $0.24 against USD. Moreover, the token still captures the third-largest-largest spot with the market capitalization of $10,729,945,252.
Image Source – Ripple Twitter