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.
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.
The potential problem is with networks like Xahau, which will have all of the features of the XRPL, plus hooks, but only allow a one-way B2M. They could potentially steal the show, unless amendments like hooks are adopted on the main net. Side-chains are not one-way.
— Tim Hoff (@xrp_hodl_r) September 10, 2023
“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.”
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.
The short:
1) XRP adoption is not a goal.
2) Wrapped XRP represents XRP, just as a USD IOU/stablecoin represents USD.The longer:
1 cont) why would XRP adoption be a goal and/or why should companies building on the technology help XRP holders? If I want to start a business and…— Thomas Silkjær (@Silkjaer) September 10, 2023
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.