{"id":30636,"date":"2023-10-06T11:52:42","date_gmt":"2023-10-06T15:52:42","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=30636"},"modified":"2023-10-06T11:52:42","modified_gmt":"2023-10-06T15:52:42","slug":"xrp-news-ripple-cto-defends-clawback-feature-on-the-xrpl","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/10\/06\/xrp-news-ripple-cto-defends-clawback-feature-on-the-xrpl\/","title":{"rendered":"XRP News: Ripple CTO Defends Clawback Feature On The XRPL"},"content":{"rendered":"

Ripple\u2019s<\/a> Chief Technology Officer (CTO), David Schwartz, has always been quick to come<\/a> to the defense of the crypto firm and its technology. This time, he has defended Ripple developers implementing a newly proposed \u2018Clawback\u2019 feature on the XRP Ledger (XRPL)<\/a>.\u00a0<\/p>\n

Why The Clawback Feature Is Necessary<\/h2>\n

In a tweet<\/a> shared on his X (formerly Twitter) platform, Schwartz mentioned that while initially having reservations about the feature as he felt it was \u201credundant,\u201d he later realized its importance as it differed from the existing freeze feature<\/a>.\u00a0<\/p>\n

The \u201cclawback\u201d amendment is now eligible for voting. This allowers issuers of new assets specifically created with this feature enabled to claw back a specified quantity of the asset from a holder.<\/p>\n

Some thoughts: \u2026 https:\/\/t.co\/OmrerirRQz<\/a><\/p>\n

\u2014 David \u201cJoelKatz\u201d Schwartz (@JoelKatz) October 2, 2023<\/a><\/p>\n

As the name suggests, the Clawback feature allows a token issuer to \u201cclaw back\u201d tokens when there is fraudulent activity or for recovery purposes, like when a user loses access to their account.<\/p>\n

Related Reading: Bitcoin Investment Strategy: Analyst Sets Hefty Exit Price<\/a><\/p>\n

He noted that the clawback feature was primarily to be used to fulfill legal obligations, as in the case of a stablecoin issue fulfilling their redemption obligations or where a court order necessitates the need to use such a feature.\u00a0<\/p>\n

From this premise, he explained that this feature ensures that this event is represented on the ledger, unlike the freeze feature, which doesn\u2019t highlight why an asset was frozen. As such, this latest feature allows for better accountability and makes audits less complex.\u00a0<\/p>\n

Furthermore, he mentioned that the freeze feature was more of a \u201cnuclear\u201d option, unlike the clawback feature, which does less damage and can seen as a viable and probably better alternative.\u00a0<\/p>\n

Schwartz reiterated that this clawback didn\u2019t apply to XRP and suggested that it was an option for stablecoin issuers<\/a>, noting that other \u201cblockchains that have stablecoins on them have some version of this clawback feature\u201d and how it helped solved an accountability problem.\u00a0<\/p>\n\n

XRP Ledger Feature Receives Cold Reception<\/h2>\n

Despite Schwartz\u2019s justification of the feature, many still showed displeasure with it as it undermined the ethos of decentralization and users\u2019 privacy. One X user (@bigcjat) explained<\/a> that a clawback feature seemed more drastic, unlike the freeze feature, as the former stripped users of their tokens, unlike the latter, where the user still maintained control of his tokens.<\/p>\n

He went on to quiz<\/a> whether this token was simply proposed because of the \u2018recent partnership\u2019 considering that the feature was never proposed before now. He then suggested that the crypto firm and its blockchain may have been compromised as he stated, \u201cMoney taints, even decentralized ledgers.<\/p>\n

In response, Schwartz stated that, to the best of his knowledge, the driving force behind this feature was to ensure accountability as it would reflect the legal obligation of an issuer. He is not aware of anyone stating that they will only partner with Ripple<\/a> if the XRPL supports clawback.\u00a0<\/p>\n

Other users weighed in on the conversation, with some showing support for the feature, stating that stablecoin issuers needed to implement such a feature. On the other hand, others argued that the clawback feature wasn\u2019t necessary, with a particular user stating<\/a> that this risk is \u201cakin to being SIM swapped.\u201d\u00a0<\/p>\n

Another concern raised is that token issuers could use this feature maliciously, especially when experiencing financial difficulties. That particular user gave an example of FTX being able to claw back their FTT tokens<\/a> or a stablecoin issuer like Tether clawing back their USDT tokens in the event of financial difficulty.<\/p>\n

The X user @bigcjat once again came into the conversation and noted that Schwartz\u2019s talks about \u201clegal obligation\u201d only undermine the essence of blockchain technology<\/a> as there was no need for a ledger if the \u201cactual value\u201d and \u201crules\u201d were off the ledger.<\/p>\n

However, Schwartz noted<\/a> \u201cseveral benefits\u201d to putting these transactions on the ledger. One of them is that a public blockchain ensures that \u201cthe total legal obligations of the issuer can be completely public in a verifiable way.\u201d<\/p>\n

The clawback feature will still need to be voted on by validators on the XRP Ledger before it becomes implemented. Once implemented, stablecoin issuers must decide to enable it before they can create their tokens on the network.<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Ripple\u2019s<\/a> Chief Technology Officer (CTO), David Schwartz, has always been quick to come<\/a> to the defense of the crypto firm and its technology. This time, he has defended Ripple developers implementing a newly proposed \u2018Clawback\u2019 feature on the XRP Ledger (XRPL)<\/a>.\u00a0<\/p>\n

Why The Clawback Feature Is Necessary<\/h2>\n

In a tweet<\/a> shared on his X (formerly Twitter) platform, Schwartz mentioned that while initially having reservations about the feature as he felt it was \u201credundant,\u201d he later realized its importance as it differed from the existing freeze feature<\/a>.\u00a0<\/p>\n

The \u201cclawback\u201d amendment is now eligible for voting. This allowers issuers of new assets specifically created with this feature enabled to claw back a specified quantity of the asset from a holder.<\/p>\n

Some thoughts: \u2026 https:\/\/t.co\/OmrerirRQz<\/a><\/p>\n

\u2014 David \u201cJoelKatz\u201d Schwartz (@JoelKatz) October 2, 2023<\/a><\/p>\n

As the name suggests, the Clawback feature allows a token issuer to \u201cclaw back\u201d tokens when there is fraudulent activity or for recovery purposes, like when a user loses access to their account.<\/p>\n

Related Reading: Bitcoin Investment Strategy: Analyst Sets Hefty Exit Price<\/a><\/p>\n

He noted that the clawback feature was primarily to be used to fulfill legal obligations, as in the case of a stablecoin issue fulfilling their redemption obligations or where a court order necessitates the need to use such a feature.\u00a0<\/p>\n

From this premise, he explained that this feature ensures that this event is represented on the ledger, unlike the freeze feature, which doesn\u2019t highlight why an asset was frozen. As such, this latest feature allows for better accountability and makes audits less complex.\u00a0<\/p>\n

Furthermore, he mentioned that the freeze feature was more of a \u201cnuclear\u201d option, unlike the clawback feature, which does less damage and can seen as a viable and probably better alternative.\u00a0<\/p>\n

Schwartz reiterated that this clawback didn\u2019t apply to XRP and suggested that it was an option for stablecoin issuers<\/a>, noting that other \u201cblockchains that have stablecoins on them have some version of this clawback feature\u201d and how it helped solved an accountability problem.\u00a0<\/p>\n

XRP Ledger Feature Receives Cold Reception<\/h2>\n

Despite Schwartz\u2019s justification of the feature, many still showed displeasure with it as it undermined the ethos of decentralization and users\u2019 privacy. One X user (@bigcjat) explained<\/a> that a clawback feature seemed more drastic, unlike the freeze feature, as the former stripped users of their tokens, unlike the latter, where the user still maintained control of his tokens.<\/p>\n

He went on to quiz<\/a> whether this token was simply proposed because of the \u2018recent partnership\u2019 considering that the feature was never proposed before now. He then suggested that the crypto firm and its blockchain may have been compromised as he stated, \u201cMoney taints, even decentralized ledgers.<\/p>\n

In response, Schwartz stated that, to the best of his knowledge, the driving force behind this feature was to ensure accountability as it would reflect the legal obligation of an issuer. He is not aware of anyone stating that they will only partner with Ripple<\/a> if the XRPL supports clawback.\u00a0<\/p>\n

Other users weighed in on the conversation, with some showing support for the feature, stating that stablecoin issuers needed to implement such a feature. On the other hand, others argued that the clawback feature wasn\u2019t necessary, with a particular user stating<\/a> that this risk is \u201cakin to being SIM swapped.\u201d\u00a0<\/p>\n

Another concern raised is that token issuers could use this feature maliciously, especially when experiencing financial difficulties. That particular user gave an example of FTX being able to claw back their FTT tokens<\/a> or a stablecoin issuer like Tether clawing back their USDT tokens in the event of financial difficulty.<\/p>\n

The X user @bigcjat once again came into the conversation and noted that Schwartz\u2019s talks about \u201clegal obligation\u201d only undermine the essence of blockchain technology<\/a> as there was no need for a ledger if the \u201cactual value\u201d and \u201crules\u201d were off the ledger.<\/p>\n

However, Schwartz noted<\/a> \u201cseveral benefits\u201d to putting these transactions on the ledger. One of them is that a public blockchain ensures that \u201cthe total legal obligations of the issuer can be completely public in a verifiable way.\u201d<\/p>\n

The clawback feature will still need to be voted on by validators on the XRP Ledger before it becomes implemented. Once implemented, stablecoin issuers must decide to enable it before they can create their tokens on the network.<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-30636","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/30636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=30636"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/30636\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=30636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=30636"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=30636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}