David Schwartz of Ripple participated in a debate by Money 20/20 in which he identified his stance on why blockchain technology is the ideal place for building new payment systems. Schwartz cited the traditional banking systems and recent YouTube outages to address how vulnerable a centralized system is. He also noted that security and governance is the key to prove competence of the blockchain technology and stated that such technology promotes security because it does not have a point of failure. Schwartz added:

“Blockchains are secure because every participant in a watching can enforce all the systems rule. When you ask your bank balance, your bank tells you what your balance is and you have to trust them. If they screw up you have to go to the bank to get hem to fix it.”

Schwartz explained that blockchain is dissimilar in how they work. Rather, they allow participants to verify every system rule personally, thus they do not need to worry about issues concerning breach. David Schwartz also mentioned that such systems are self-defendant and more reliable. He also stated:

YouTube had a two-hour outage a couple of days ago, but people will tell you that centralized databases – it’s a solved problem. We can get five nines of reliability. Anybody came here from a centralized database, does anyone get five nines of reliability? I sure don’t, we don’t. It’s because these systems are complicated enough with complicated failure nodes.

Schwartz continued by mentioning that Bitcoin stated that its system has not experienced an outage since 2013 after it fixed a bug. He also noted that the blockchains are fundamentally more simple when it comes to failure modes and that XRP and ETH ledgers have never had outages. He also stated that blockchain is much more reliable, which is necessary if individuals do not want a single, centralized body to figure out a mess caused in the system.

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