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Ripple CTO Reveals the Genesis of XRP, Bitcoin’s Secret Sauce and the Potential of Blockchain and Cryptocurrency

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Ripple CTO David Schwartz says a realization about Bitcoin’s “secret sauce” led to the creation of XRP. At SXSW in Austin, Texas, Schwartz expanded on what brought him to the world of blockchain and cryptocurrency in the first place.

“When I first saw Bitcoin it was one of those things where you could almost call it love at first sight. I saw the technology and I thought wow, there’s really something here. And I wanted to learn everything I possibly could about it, and I found the communities, looked at the source code.

And I happened to be a little bit lucky that there was a problem at the time. This was just around the rise of mining pools and the software was never designed to handle mining pools. So a lot of people were complaining about performance issues in the software, and one of the things I specialized in was improving the performance of software. And I saw these bounties. Mining pools were like, ‘I’ll pay 10 Bitcoins if someone can fix this problem. I’ll kick in 15 Bitcoins if someone can solve that problem.’ And they were worth about $15 a piece, so that was real money…

So I explored for the direction of solving that problem that mining pools have. So I solved the problem, and they paid the bounties. And it’s kind of funny – when I went to buy a house in Oakland, I used the bounties as the deposit. And it was the first time Wells Fargo ever had to do the provenance of funds. It actually went to the posts on the Bitcoin forums, where people had offered the bounties and I claimed it.”

According to Schwartz, the epiphany that led to the creation of the XRP Ledger centered on the notion that the public ledger is the core innovation that makes Bitcoin revolutionary.

“When we looked at Bitcoin, I think a lot of people in the community thought that proof-of-work was the secret sauce, or the magic element of Bitcoin. And what I and a few other people – Jed McCaleb realized this first – and that was the key insight of his that led to the formation of the XRP Ledger and ultimately Ripple – was his insight that proof-of-work was not the secret sauce.

The secret sauce of Bitcoin is that all of the state information is public. The ledger is completely public. You can see every transaction, every balance. Everything is public. And what that means is you don’t have to take anybody else’s word for anything. If someone submits a transaction, you can check if it’s valid. You can figure out what it does all by yourself.

And that was the sort of decentralization magic, and that proof-of-work was just the way that it solved the double spend problem, the idea that if I have one Bitcoin, what if I try to send it to two different people? And that kind of led to this idea that there might be other ways to solve the double spend problem that might have different characteristics from Bitcoin.”

As for the biggest use cases for blockchain and cryptocurrency, Schwartz says cross-border payments are clearly a killer app.

“Use case fit? We have that in payments. Make no mistake, these things work for particularly international or cross-border payments because domestic payments in most parts of the world work pretty well.

Although there are exceptions. I’m sure most of you have heard of PayPal or Venmo. They’re owned by the same company – they don’t interoperate. Clearly, that’s an example of domestic payments that don’t work. But I think the cases where they don’t work are the exception. International payments are where we really have product market fit right now.”

As for additional uses for blockchain and crypto, Schwartz says it may take a minute before companies wake up to the true benefits of the technology.

Centralized databases are expensive. I was talking to some pharmaceutical companies who are looking for a database application that involves tracking the movement of their goods. And they were quoted many millions of dollars by companies whose job is to provide centralized databases. Well, you can stand up a private Ethereum node if you want. A couple of them. It’s much cheaper and the reliability is higher.

And I think also the security difference – people will say there are applications where security isn’t super critical. But what I think they miss is the fact that certain types of attacks are fundamentally impossible on blockchains. Any attack that involves injecting fake data is absolutely impossible on a blockchain, where it’s possible on a database.”

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Claims That Former TRON CTO Was Sacked For Bribery & Theft Surface

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Earlier this month, the Chief Techincal Officer of TRON, Lucien Chen announced his departure from the project. He had been with TRON since 2017 and laid out a three-point explanation as to why TRON just isn’t TRON anymore.

Following the announcement by Chen, the TRON PR sprung into action and according to the representatives from the project, Chen was actually sacked from his position months ago because:

“Suspicion of misappropriation of funds, bribery, competitive infringement, and theft of trade secrets and intellectual property.”

The CEO and founder of TRON, Justin Sun lent validation to this claim by retweeting it and a Reddit thread came up which relayed this information to the community.

Giving his reasons for leaving, Chen said:

“The whole project has developed into a monetary tool without any “decentralize the web” spirit… The technology platform of TRON was built by me. I certainly know that the real Internet applications cannot function in TRON network at all currently. The TRON ecosystem is still far from commercial applications that users can really apply to.”

There are now claims that the former CTO was bribing people, misappropriately using funds, theft and so on. A post on Reddit claims:

“Chen, Zhu, and Xie were dismissed in January, 2019 for violation of corporate policies and the law. Relevant documents and materials have been handed over to the judiciary.”

News Source:Crypto Daily

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Living on Bitcoin Just Got Even Easier, AT&T Accept Crypto Payments With Bitpay

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Earlier today, US telecom giant AT&T proudly announced that it had become the first major American mobile carrier to accept crypto assets for the payment of bills. Customers will be able to settle their accounts using Bitcoin thanks to a deal with BitPay.

Although such developments are great for those earning in Bitcoin, for most people interested in the number one digital currency, the appeal will likely be limited. They therefore do not quite represent the holy grail’s of crypto adoption many portray them to be.

AT&T to Accept Bitcoin Payments Through BitPay

It’s getting easier than ever to live your life exclusively using digital currency. More and more online merchants are opening up to crypto assets in one way or another.

Many with a vested interest in digital currency were excited recently by the news that several large companies would be accepting Bitcoin payments – albeit in a round about way. Bitcoin users can now kit out their wardrobes at Nordstrom, shop for gaming supplies at GameStop, and even pay directly for their groceries at Whole Foods using their favourite digital currency.

This latter point got people particularly excited given that internet retail behemoth Amazon owns WholeFoods. Speculation is rife that Amazon itself could be next to accept Bitcoin via this convoluted method of using a payment processor to pay with a peer-to-peer currency.

You see, part of the recent wave of increased acceptance has been made possible by a deal between crypto exchange Gemini and a payments start-up called Flexa. Users actually pay using an application called Spedn. The merchants themselves don’t receive Bitcoin but they for very little investment they can look supportive of uber-trendy things like cryptocurrency.

The latest company to join the pseudo acceptance bandwagon is US mobile giant AT&T. It announcedvia a blog post earlier today that it would be using crypto payments processing company BitPay to receive payments from its customers online.

In the AT&T press release, Kevin McDorman, the vice president of the company’s business operations, stated of the move:

“We’re always looking for ways to improve and expand our services… We have customers who use cryptocurrency, and we are happy we can offer them a way to pay their bills with the method they prefer.”

Sure, It’s Great for Crypto USERS, Not so Much for Speculators

Just like the other recent announcements of so-called merchant acceptance, this is not really the bullish news that many have made it out to be. Since AT&T will be using BitPay to process payments, they will simply receive dollars as they always would have done. To get those dollars, the Bitcoin is immediately sold creating additional downside pressure on the price of Bitcoin. For those purely speculating, it should be realised that by using such services you are increasing the likelihood of dropping the price of Bitcoin. It will be truly exciting when a major retailers takes payment directly in Bitcoin themselves and goes on to finance the business itself using the crypto asset.

Of course, these stories of increased acceptance are great for those who get paid in Bitcoin and don’t want to have to deal with an exchange just to go about their daily routines. Having more options than ever to spend crypto directly at is certainly advantageous for those trying to live without fiat.

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Bitcoin [BTC] Going Above $7,950 will Start Another Breakout – Analyst

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Bitcoin has been in a slight pullback for a few days now and those who have been watching the charts during this time may be confused as to the direction Bitcoin, and indeed the whole market is going next. A cryptocurrency trader known as DonAlt on Twitter has given some light on the market. He said the lead currency will see some light if it manages to rise to $7,950 from the current $7,842 price.

Bitcoin market chart from TradingView

When will this happen?

Bitcoin grew really fast especially in May, rising way above $8,000 and the crypto community expected a move towards $10,000. However, the market started pulling back in what seemed to be a crash, but analysts said was normal. At the time, the cryptocurrency was said to be growing too fast and needed to correct again before rising at a slower pace.

This seems to agree with DonAlt’s position as the cryptocurrency has eventually corrected but its growth has become significantly slower than before. Another analyst Josh Rager says the asset will be consolidating this week and great volatility should be expected on Friday, May 31st. This may eventually lead to a climb to DonAlt’s critical $7,950 price and the long-awaited recovery above $8,000 again.

 

A long-awaited rise

The initial price rise evidently raised the expectations of the crypto community and many Bitcoin holders cannot wait for the price to go up again. Not only that, altcoins were expected to rise with Bitcoin’s pullback but the current one has held down even the alts. The rise of Bitcoin is currently probably the only hope for the market and the entire space is looking forward to it.

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