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HomeCrypto NewsMarketExpert Says Firms Building on XRPL Are Not Obliged to Boost XRP Holders' Interests

Expert Says Firms Building on XRPL Are Not Obliged to Boost XRP Holders’ Interests


Thomas Silkjaer, XRPLF Head of Compliance, clarifies the purpose of XRPL as an XRP investor and expresses worries that Xahau could lead to less adoption of XRP and the XRPL.

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In a recent tweet, XRP holder Tim Hoff expressed concerns about the Xahau network, an upcoming sidechain on the XRP Ledger (XRPL). Hoff’s concerns centered around the view that Xahau may not add value to the price of XRP.

According to him, Xahau is not a real sidechain of the XRPL since it has no bidirectional bridges that allow token transfers between the two networks. He argued that Xahau is essentially a new standalone network rather than an extension of XRPL’s functionality.

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“If XRP adoption is the goal, Xahau could dilute that,” Hoff remarked. Meanwhile, Hoff acknowledged the Xahau developers’ efforts in creating worthwhile solutions using XRPL.

Yet, he expressed concerns that the solutions could enable a rival environment for XRPL, hurting XRP holders.

In his words:

“They are also creating what could potentially be a direct competitor to the XRPL. And that’s not so good for XRP holders.”

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Expert Says XRP Adoption Is NOT a Goal

Thomas Silkjaer, the Head of Analytics and Compliance at XRP Ledger Foundation (XRPLF), weighed in on the conversation to clarify the purpose of XRPL.

Silkjaer argued that the goal of the XRPL is not to increase the price of XRP but to provide a platform for building useful applications. “Why should companies building on the technology help XRP holders?” Silkjaer asked rhetorically.

Additionally, he pointed out that businesses are profit-driven. Therefore, a business will build on XRPL if it best fits its needs, regardless of whether the ultimate product uses XRP as an asset. 

Emphatically, Silkjaer expressed that companies building on the XRPL are not obligated to boost XRP holders’ interests. Instead, they are to create profitable solutions that cater to real-world needs using XRP as a bridge asset or other tokens, stablecoins, and smart contracts.

Furthermore, Silkjaer highlighted the potential of using a wrapped XRP token (WXRP) on the Xahau network. While Hoff dismissed the usefulness of WXRP, Silkjaer noted that it is just a representation of XRP.

Moreover, Silkjaer cited examples like XChainBridge and the Peersyst/Ripple EVM sidechain, where XRP can be wrapped and potentially used as a gas token. 

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Abdulkarim Abdulwahab
Abdulkarim Abdulwahabhttp://thecryptobasic.com
Abdulkarim Abdulwahab is a blockchain writer with a specific interest in journalistic writing. He covers breaking events in the crypto community and blockchain industry. Over the past year, he has published over 1,500 short-form and long-form content for Web3 publishing firms.

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