Ripple CTO David Schwartz has recently spoken to the News and Research Team from the McCombs School of Business at The University of Texas in Austin.
He explained the main differences between the XRP Ledger’s consensus and Proof-of-Work [PoW] protocols.
He said that they started by building a “Federated Byzantine Agreement Model” which was very different from Bitcoin’s PoW.
Schwartz highlighted the fact that their model was different and it was better suited for the cross-currency system.
“The miner who mines a particular block gets to choose every transaction in that block, so those are sort of a dictator-of-the-moment, and they are completely self-interested, they are not trying to help you out, they are trying to help themselves out,” Ripple’s CTO explained.
He continued and said that on the XRP Ledger, the transactions were picked by the validators in an unbiased way.
Ambcrypto reported that Schwartz said that if a transaction were deemed biased the users would stop considering them as validators and they would eventually move to another validator.
“So we built the ledger from the beginning as a multi-currency ledger, and I think that we built in peer-to-peer credit and lendings to people and I think that is probably the key difference between XRP’s consensus mechanism and Bitcoin’s proof-of-work,” he said.
XRP Ledger vs. BTC Ledger
It’s also worth noting the fact that the XRP Ledger is superior to the one of Bitcoin due to more features such as the transaction cost, speed, and scalability.
The XRP Ledger processes a transaction in under 4 seconds, and the one of BTC takes between minutes and hours.
Bitcoin is more vulnerable to attack than XRP
We recently reported that Ripple and Bitcoin had been compared more than once.