Ripple Co-Founder McCaleb Cites Centralization Concerns for Leaving

In a recent interview, Jed McCaleb, co-founder of both Ripple and Stellar, provided a detailed explanation of the philosophical differences that led him to leave Ripple and create Stellar. McCaleb emphasized that his vision was to build an "internet-level protocol" that should be operated by a non-profit entity, similar to how the internet functions today. He argued that a payments network should work as openly and interoperably as information flows on the internet, requiring governance and structure that he believed Ripple did not implement.

McCaleb highlighted that another key principle underlying Stellar’s approach is broad participation across the network. He argued that a decentralized payments platform depends on the wide distribution of its native asset and engagement from numerous independent participants. He noted that Stellar’s efforts to distribute its underlying coin as widely as possible were central to this philosophy.

During the interview, concerns over centralization and technical limitations were raised. McCaleb noted that Ripple’s consensus algorithm makes it difficult for parties outside Ripple Labs to run nodes, resulting in Ripple Labs operating the majority of the nodes. This, in his view, creates a system that is effectively centralized, comparable to existing platforms such as SWIFT or PayPal. He warned that centralized control of the network undermines its ability to grow and reach widespread adoption.

McCaleb reiterated the necessity of an open, decentralized system to achieve ubiquity and sustainability. He argued that only a truly open network not controlled by a central authority has the potential to achieve global scale and user trust, similar to the development of the internet. The interview concluded with the host thanking McCaleb and expressing interest in hearing more from him in the future.

Stellar Expert, a crypto enthusiast, addressed the XRP community directly with a series of questions following the interview. These questions included inquiries about Ripple’s strategy, its level of decentralization, and the original intent behind the technology. The tweet drew attention to McCaleb’s points, framing them as critical questions for the XRP community to reflect on.