Nothing to Hide

Ripple CTO Clarifies XRP Drama

Ripple CTO Clarifies XRP Drama

Ripple CTO David Schwartz has come forward to address a recent incident involving XRP, Ripple’s native cryptocurrency.

The issue began with a report of an abnormally large transaction of nearly $15 billion worth of XRP, which Schwartz clarified as misleading. The actual transaction, involving 25.6 billion XRP, turned out to be worth just a few cents.

Schwartz commended Bitfinex and its CTO Paolo Ardoino for effectively neutralizing what was actually an exploit attempt.

Schwartz’s explanation

Schwartz took this opportunity to delve into the specifics of the XRP Ledger’s functionality, particularly addressing the Partial Payments feature, which was central to this incident.

He stated unequivocally that the incident was not due to any flaw or vulnerability in the XRP Ledger. Instead, it highlighted the utility and security of the Partial Payments feature when used correctly.

This feature, designed for complex financial transactions, allows for the specification of a maximum amount that can be sent, ensuring that receivers cannot be deceived by receiving less than expected.

Schwartz praised Bitfinex for their correct handling of the feature, which was instrumental in preventing potential issues.

He stressed the importance of proper configuration and integration for all institutions and applications using the XRPL’s Proper Payments feature, directing users to the official XRPL website for guidance on secure integration.

The XRP “transfer” mystery

This story began when a transaction involving a staggering amount of XRP raised alarms within the crypto community.

The size of the transaction, which accounted for nearly half of XRP’s circulating supply, sparked intense speculation and confusion.

Voices within the crypto community, including Scott Melker and Adam Cochran, questioned the legitimacy and security implications of such a massive transfer.