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HOW THE PRIVATE XRPL FEDERATED SIDE CHAIN WORK (" PRIVATE LEDGERS")
In this episode, CryptoRick discusses how the Federated Side Chains work (the private XRPL side chains "ledgers").
Effectively the nodes are elected by a quorum of "federators" who guard the walled garden between the private and the public XRPL network. They can agree on a consensus without the public nodes and thus are prone to individual price consensus, tokeonomics consensus, and even the election of their own native asset. They may elect to use XRP or not. The XRPL token can be any token or not token through patented Ripple technology.
Sources of information:
https://ripple.com/insights/ripple-pilots-a-private-ledger-for-central-banks-launching-cbdcs/
https://ripple.com/solutions/central-bank-digital-currency/
https://onxrp.com/the-private-xrpl/
https://ripple.com/insights/a-vision-for-federated-sidechains-xrp-ledger/
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