Ripple CTO Addresses Impact of AMM Amendment on XRPL Performance

Published 11/10/2023, 11:41
Updated 11/10/2023, 11:45
© Reuters.  Ripple CTO Addresses Impact of AMM Amendment on XRPL Performance
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  • Ripple’s CTO clarifies the AMM amendment’s limited impact on XRP Ledger’s performance.
  • A developer questions CPU usage, and Schwartz emphasizes its minor concern.
  • AMMs integrated with XRPL’s core payment and liquidity features remain valuable.

David Schwartz, the Chief Technology Officer of Ripple, recently shared insights regarding the impact of the Automated Market Makers (AMM) amendment on the XRP Ledger (XRPL). Schwartz highlighted that the AMM amendment has a relatively minor influence on performance and ledger size compared to NFTs.

Moreover, he emphasized that the AMM is a fundamental payment and liquidity feature, mainly impacting complex cross-currency payments following price fluctuations. However, in response to Schwartz’s statement, a full-stack developer and XRPL Validator sought more details, particularly regarding concerns related to CPU consumption.

Notably, the developer was interested in understanding whether the XRPL will experience increased CPU and memory usage due to the AMM amendment and if it would affect the network’s overall performance.

In his response, David Schwartz clarified that the primary impact of the AMM amendment lies in CPU consumption, which is a less critical resource than ledger space, storage I/O, and network bandwidth.

He explained that CPU optimization is relatively manageable and that most nodes have abundant CPU resources. Schwartz acknowledged that performance testing may exaggerate the AMM’s impact on typical ledger operations, as most payments are unlikely to interact with AMMs to the extent seen in testing scenarios.

However, he cautioned against potential intentional CPU consumption attacks on XRPL, particularly through artificially expensive payment transactions. According to the Ripple CTO, such attacks could reduce the overall transactions per second (TPS) of XRPL.

Schwartz emphasized that, despite these concerns, integrating AMMs with the ledger and payment engine offers significant value. He also mentioned that there is no significant concern that dedicating CPU resources to the AMM amendment would limit future developments, except for potential enhancements to the payment engine.

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