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A newly published paper by Ulster University has stirred discussions within the XRP community due to its reference to a private ledger developed by Ripple.
The academic paper, "CBDC -- Lessons from China," published in August 2024, delved into the insights and takeaways from China's digital yuan (e-CNY) pilot.
The research compared the transaction throughput of various platforms, including a blockchain tagged 'Ripple private ledger,' and its role in digital Euro testing.
WrathofKahneman (WOK), a well-known figure in the Ripple XRP community, recently brought attention to the paper. He shared its content and implications with fellow community members, amplifying the speculations.
A significant aspect of the research is a detailed table that contrasts the transactions per second (TPS) capabilities across different blockchain platforms. The table highlights a blockchain called "Ripple's private ledger."
The research referenced Ripple's private ledger for its Digital Euro pilot project role. This suggests that central banks have utilized it to evaluate or experiment with the digital currency intended for the Eurozone.
Ulster University's reference to Ripple's private ledger in the research has sparked considerable speculation. This is because of Ripple's potential involvement in the European Central Bank's (ECB) digital Euro Project.
To provide some background, the ECB has been exploring the issuance of a digital Euro, a central bank digital currency (CBDC). This is part of its ongoing efforts to modernize and enhance the European financial systems.
The exploration phase officially commenced in November 2023. It involves extensive research and analysis to determine the feasibility and design of the digital Euro.
The research paper's reference to Ripple's private ledger's role in testing the Digital Euro has ignited discussions about Ripple's role in this significant project.
However, no official confirmation regarding Ripple's involvement with the European Central Bank (ECB) exists.
Its role in central bank digital currency initiatives has been substantial and diverse as it has partnered with various countries worldwide. Moreover, Ripple's CEO, Brad Garlinghouse, publicly confirmed that the company had successfully secured partnerships with ten governments for CBDC initiatives.
Wrath of Kahneman (WOK) suggests that the research paper's reference to Digital Euro testing could refer to Ripple's partnership with the Digital Euro Association (DEA).
Established in February 2022, this partnership highlights the involvement of Ripple in advancing central bank digital currencies.
The DEA has acknowledged Ripple's expertise in the field. Hence, it has collaborated with the company to enhance the technical understanding of CBDCs within the community.
Another key element fueling discussions within the XRP community is the mention of a "Ripple Private Ledger" in the Ulster University Research paper.
The paper provides data indicating that this private ledger had a transaction per second (TPS) of 1,500 transactions in 2022. However, researchers still consider its future TPS unknown, fueling more speculation.
The paper also notes that past community theories suggest Ripple has a private ledger where XRP is priced at extremely high levels, such as $327,000. However, Ripple Chief Technological Officer David Schwartz has consistently challenged and debunked such theories.
Ripple has been developing private versions of the XRP Ledger designed explicitly for central bank digital currencies. The company builds these private ledgers to enable central banks to manage a high volume of transactions per second (TPS). It can also scale them further if needed in the future.
However, these private ledgers are distinct from the public XRP ledger and do not use XRP as the underlying asset.