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Hello this is Matt on the moon Lambo Channel and I found this incredibly Interesting look at the headline here From the crypto basic Ripple CTO says Hooks could pose multi-billion dollar Risk for xrpl users so yes the warning And we should we should hear it uh David Schwarz warning that there's a chance That if something goes wrong if you Implement an amendment that uh allows For smart contract functionality which Is what the hooks amendment is uh There's a possible that if things go off The rails it could be a multi-billion Doll mistake and I can only imagine the Level of harm that would cause xrp Holders and the entire ecosystem Including from a development perspective But you know what's really cool uh Despite that being the case and despite Him issuing this warning it might sound Like he's anti this but uh not so much In fact he thinks there's a real serious Chance that we could end up with smart Contract Functionality on The xrp Ledger layer One that would be be incredible because To me it seems like that's been one of The greatest hurdles in terms of uh Increasing developer activity it's you Know if you look at all the other Platforms where there's tons and tons And tons of uh of developers what do They have in common smart contract
Functionality there are more types of Things you can build if you're doing That now I've I've spoken a fair bit About this recently so I'm going to try To not regurgitate too much of what I've Said on this topic recently uh but I Will note that uh there absolutely can Be and are a crypto currencies that Don't have an insane amount of developer Activity but have been adopted for other Reasons three off the top of my head Bitcoin what the hell does that thing do You know if you look yeah it's got a few Hundred developers but if you consider How much money's been poured into it and The fact it's number one the market cap That's pitiful that's almost nothing you Know compared to ethereum's whatever 24 2500 developers uh so it's it's not the Case that development activity is the Only end all be all it's it's something That is a factor it is ma it does matter Uh you've got xrp xrp is number six in Market cap because the market has voted It there it's great generally speaking For payments and there are things you Can do uh with it that you can't do with Ethereum because of the entire structure And and just how I mean think about how Think about how fast The xrp Ledger is And what it's good at and how how cheap Transactions are there are things that You'd be better off building on The xrp Ledger as opposed to ethereum so right
There like there's a there's a reason The xrp Ledger exists there's a reason That it's number six in terms of market Cap and it I mean has a built-in Decentralized exchange so there's Another example just in the top 10 and Then if you go down to I think number 13 Unless it's moved since I've last looked There's Tron Tron has 16 full-time Developers you might as well round down To zero nobody's building anything on Tron it's number 13 in market cap Because it has an extensive uh stable Coin ecosystem Ral Paul noted that it's The largest stable coin ecosystem in Crypto so assuming that that fact is Correct either way it's it's there for a Reason so I'm I'm just saying it's not The case that xrp necessarily would be Going the way of the dodo if we don't Get this approved but it's exciting to Know that it still could come because That will just further ensure the Long-term viability of Xrp now just to do a minor bit of of a Table setting here let's go back to June Of last year here's a headline from you Today xrp Ledger ambitious plan to Dethrone ethereum unveiled and I want to Share with you perspective from Wheats a Wind I'm sure most of you are familiar With him by now um created xrpl Labs you Know and Summoned one of the most well-known
Developers within the xrp uh Community I I think it's safe to say here and he's Is he issued a warning you know dating Back to June because his perspective Agree with him or not is that xrp ledger Is going to be in trouble potentially if We don't do something uh that allows The Xrp Ledger to evolve specifically Enabling smart contract functionality And so here's what w say win said back On June 1st of last year just to quickly Set the table and then I'm going to get Right into what David Schwarz had to say He wrote why is it always the ethm Ecosystems coming up with new cool Features and ideas and why is The xrp Ledger always playing katchup because of Smart contracts you don't have to change The entire blockchain protocol you get a Blank canvas come up with a new feature And build it I've been around in the Xrpl ecosystem long enough to be certain It's not because of a lack of brains and Creativity by xrpl devs it's insanely Hard to write core xrpl code even harder To get your idea merged by Ripple X devs Close to impossible to get it voted in So how can xrp Ledger protocol Chains Lead instead of play catchup with the Latest crypto D5 fad and Retail features By giving xrp Ledger protocol devs a Blank canvas for their ideas and Creativity as well and at xrpl Labs We've built just that hooks and so folks
This this is the amendment uh that Allows smart contract functionality Natively layer one right on The xrp Ledger then he says with hooks Developers can add their own logic and State to accounts on xrp Ledger protocol Chains with hooks enabled better Team Management compliant features Enterprise Features games automation limited Signing delegation one implementation to Rule them all almost half a year ago we Published a Blog about hooks hooks Aren't just an idea the technology Exists today on our hooks V3 test net The hooks amendment is coming we just Finished a full hook security audit um Report to be published soon we're Working with compliance and legal to get A Hooks and enabled side chain running The chain will be there to stay Complementary to The xrp Ledger it will Launch with hooks enabled from Ledger One no Ico no airdrop we're not leeching We're expanding the ecosystem okay so That did come to pass uh the the side Chain that he's talking about became That's what became zaha and it has Launched um now there was this response From Neil hartner who is a ripple Employee he responded to the thread and Wrote Because again the question was why is it That e evm ecosystems you know why why They always the ones coming up with the
Cool new features and ideas why is xrp Ledger always playing ketchup and and Neil harner's response was same reason Ethm ecosystems have repeatedly had Millions stolen due to Smart contract Bugs but you never hear about that Happening in the xrpl ecosystem and Folks uh you're going to see that type Of concern um also spouted from David Schwarz in just a moment and so you guys Will have to tell me where you come down On this ultimately we' say when he made His his St pretty clear he responded and Said true which is great until that Turns The xrp Ledger into the Nokia of Crypto I remember having a Nokia phone Back in 19 dickity too I'm sure a lot of You out there did as well um remember Playing snake ah good times good Times of course if you're about 10 years Younger than me you don't know what the Hell I'm talking about know and I'm I'm 40 but anyway Um so look and nothing but uh love and Respect for whe say wind I'm not Completely convinced that the exrp I'm Not convinced as the stance that you Know The xrp Ledger would basically Become you know completely irrelevant You know become the Noki of crypto um if We don't get this approved I'm not Convinced of that because I see other Cryptocurrencies that have true stain Power for reasons other than uh you know
Smart contract functionality other than Uh you know some strong presence in Terms of developer activity there are a Lot of different reasons that Cryptocurrencies uh and and blockchains Are adopted so developer activity Undoubtedly is it is important I'm not Pretending like it's not in in most Cases that that absolutely is true um It's just a question of is it worth the Risk and so that's the point that Neil Hartner here was bringing up well you Don't have all these bugs and millions Getting stolen and we say wi basically Is saying it's worth the risk though Because otherwise we're irrelevant That's that's the gist of the argument I'm paraphrasing of course but that's The argument that's on your screen right There um and so that brings us to what David Schwarz had to say about this and He's right like this is a really big Deal um which is why frankly I'm glad That zaha exists because it has hooks Enabled from from day one it's been Enabled from day one so it's being Tested in a real world environment in a Live blockchain that's good so if it Goes well for zah how and it's got a Sufficient track record maybe then it's Something we could consider implementing On The xrp Ledger once it's been battle Tested right it's the same concept of if You think about flare and it's got the
Canary Network the Songbird it's a Separate blockchain but it's not a test Net because it's actually live it's an Al live ecosystem you can test ideas but Before you put a bunch of energy and re Maybe Real World Resources into whatever It would be that would be on on flare You test it in Songbird for first uh you Know and then maybe you scale in a more Serious way once you see it works uh Then you plop it down on flare and so It's nice to see since zaha is a side Chain of The xrp Ledger it's it's Getting real world testing right now and So far as far as I'm aware it's working Quite well so anyway the headline from The Crypt basic Ripple CTO says Hooks Could pose multi-billion dollar risk for Xrpl users Ripple's Chief technology Officer David Schwarz has highlighted The potential hazards linked to the Experimentation of smart contract like Capabilities in The xrp Ledger through Hooks the commentary came during an Exclusive interview with coindesk the Interviewer probed the exploration of The hooks feature seeking insights into Its road map and significance for xrp Stakeholders in response Schwarz Disclosed that Ripple had minimal input Into the development of hooks he noted The Ripple team acknowledged its Promising potential during initial Discussions
Uh however Schwarz voiced two potential Risks associated with hooks for the xrp Ecosystem firstly he underscore the Substantial Financial Risk posed by any Potential flaws in the feature that Could compromise the Integrity of The Xrp Ledger according to the Ripple CTO Such flaws quote would be a Multi-billion doll problem end quote for Xrp investors and stakeholders so Folks I understand an appreciate the Hesitation surrounding hooks I can Understand if you're a developer why That's frustrating I understand why whe Wind wanted to create zaha and I'm glad He did I I applaud him for that I think That's fantastic uh I don't hate the Idea of hooks getting tested on a Different blockchain first I don't hate That idea I'm just going to be honest With you I would love to have that Functionality on The xrp Ledger right Now and have developers still start Building stuff but my God like so many Of us have very money invested in this Thing and if if this goes Sideways it could be catastrophic for a Ton of people that's the concern so it's It's I'm glad that David Schwarz said What he said and I I tend to side more So with with David Schwarz even though Of course I appreciate weay WIS building And I would love to one day see hooks Adopted on The xrp Ledger and it might
It might happen still I'm optimistic for That at some point but uh you know walk Walk before you run basically right Anyway peace continues furthermore schw Stressed the importance of preserving The xrp Ledger primary function as a Robust payment platform and so folks This goes back to part of what I was Saying at the outset of the video I Understand that without this Functionality there are only so many Things that can be built there's fewer Things that can be built on The xrp Ledger but there's a place for a Blockchain like this which is why xrp is Number six in terms of market cap There's a demand for it and xrp now has Staining power so even without hooks I Still think xrp can still be your fast Forward a decade from now even without It uh I would imagine that it's Still long-term viable that that's what The Market's telling us make sense to This point at least and yeah it could Change but um but but still again there Is that opportunity for this Functionality to be added at a future Date piece continues he expressed Concerns that adopting Hooks could Transform xrpl into a more ethereum like Network essentially he sees it altering Xrp Ledger core purpose as a seamless Payment protocol so folks given that That's the reason that xrp is number six
In market cap people do value that That's why xrp is where it is if it Actually took away from that core Functionality I would be against hooks So I would need the developers out there Uh and the validators out there who are More Tech oriented to make the arguments In order to persuade me one way or Another but I'm just saying if it does Anything to hinder you know xrp's use Case as just broadly great for payments Then it's like what's the point there's A there is a place in the crypto market For for for a coin like xrp that's just Really good at that type of thing so as Long as we're not screwing that up yeah As and as long as it's we're Sufficiently certain that it's it's safe Okay go ahead and add hooks anyway piece Continues nonetheless during the Interview Schwarz expressed openness to Welcoming Xrp's potential to serve purposes Beyond Its primary focus he welcomed the Concept of other chains evolving around Xrp Ledger addressing diverse use cases Like smart contracts real world asset Tokenization and tokenized securities Furthermore the Ripple executive noted That the xrpl labs uh the team behind Hooks had launched their Network zah how Utilizing xrpl Technology as the Crypt basic reported Previously Schwarz believes the how
Represents an effective Avenue to test Run hooks he mentioned that if the tech Demonstrates its efficacy without Undermining the Network's performance For other purposes there could be a Proposal to incorporate hooks Into The Xrp Ledger main net Schwarz sees such a Proposal coming to fruition within the Next year or two so folks that would be Absolutely killer if it's tested in real World world environment there's Sufficient confidence that it's not Going to screw anything up and the Payment side of everything still works And people aren't going to lose Bazillions of dollars then on a scale of One to 10 I give that two thumbs up so That that's my thoughts you guys tell me I'm sure not everybody's going to agree With me that's perfectly fine uh but That's where I'm at right now I'm not a financial adviser you should Not buy or sell anything because of Anything I say or right that would be a Very very very bad idea until next time To the Moon Lambo
