For years, $XRP has been at the center of heated debates. The main question: is the network centralized or truly decentralized? Many have pointed to the fact that Ripple holds about 40% of all XRP tokens and concluded that the network must be controlled by Ripple. Others argue that decentralization is far more complex than just token ownership - it’s about the technical and organizational structure of the network.
By 2025, thanks to recent legal rulings and technical evidence, the picture has become much clearer. I'd like to break down why XRP can indeed be considered a decentralized network and why it’s important to look at this issue from multiple angles.
♟ Token Ownership ≠ Network Control
Yes, Ripple holds around 40% of all XRP tokens. That’s a fact that can’t be ignored. But owning tokens is primarily an economic factor - not the same as controlling how the network operates.
What really matters is who makes decisions about the protocol, who validates transactions, and who can enforce changes.
♟ It’s the Validators That Govern the Network
The XRP Ledger runs on over 150 independent validators worldwide! Ripple controls only one of these. This is a key point: the network’s technical design requires consensus among validators to make protocol changes.
Unlike Bitcoin or Ethereum, XRP doesn’t use mining or Proof-of-Work. This prevents mining pools from dominating the network. Instead, decisions happen via consensus among validators.
♟ Strict Rules for Protocol Updates
Any protocol change requires approval from at least 80% of validators for two consecutive weeks. This rule acts as a strong safeguard against any single party trying to take over or manipulate the network.
This technical mechanism ensures that XRP remains open and fair for all participants.
♟ Legal Clarity Matters
In May 2025, a U.S. court officially ruled that XRP is not a security when traded on secondary markets. This legal clarity is a major milestone that reduces uncertainty and affirms XRP’s status as a decentralized digital asset.
For the crypto industry, clear regulatory decisions like this are crucial for healthy growth.
♟ A Truly Global Community of Holders
Today, over 75,000 XRP holders across 143 countries show real global participation and diversity of ownership-another strong sign of decentralization.
Decentralization isn’t just a technology - it’s also a living, growing community.
Ripple is undoubtedly the most visible company behind XRP, but it’s important to separate marketing from the network’s technical reality.
Decentralization is about balance of power, transparency, resilience and collaborative governance. XRP Ledger, with its architecture and legal backing, clearly demonstrates that such systems are possible.
Focusing solely on token holdings can lead to misleading conclusions. When analyzing crypto projects, always consider the technical design, governance model and legal context.
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