XRP Ledger Sinks to Last Place in Latest Blockchain Security Review

The XRP Ledger, which underpins the world's third-largest cryptocurrency, has been given a poor score for security in the latest blockchain ecosystem ranking from Kaiko, a leading blockchain research firm. The XRP Ledger ranked last among 15 blockchains analyzed, scoring just 41 out of 100.

One might expect that the blockchain behind such a prominent cryptocurrency would receive high marks for security, given its extensive experience and over a decade of operation. However, Kaiko's latest quarterly Blockchain Ecosystem Ranking suggests otherwise. The XRP Ledger fell short in several critical areas, including governance, integration, liquidity, operational efficiency, and – most notably – security.

The security component of the ranking assesses various factors, including operational resilience, validator decentralization, audit frequency, and past incidents to evaluate infrastructure risks. According to senior analyst Adam Morgan McCarthy, the main issues with the XRP Ledger were a hack earlier this year, a poor Nakamoto coefficient score, and an abnormally low number of validators.

The Nakamoto coefficient score is a metric used to estimate how many entities would need to collude to compromise the network. For proof-of-stake chains like Ethereum and Solana, which rely on large, open validator sets – over 1 million and 1,700 respectively – this score is relatively high. In contrast, the XRP Ledger operates with around 190 active validators, with only 35 included in its default unique node list, a trusted subset used by most participants to reach consensus.

This design aims to optimize speed and reliability but has been criticized for limiting diversity and making the system more vulnerable to coordinated disruption. This limited validator distribution is reflected in XRP Ledger's low Nakamoto coefficient score – just 41 out of 100.

One notable incident that raised concerns around XRPL's software supply chain security was a hack in April, which compromised an official software package used by XRPL developers and injected malicious code capable of stealing users' private keys. Although the core ledger and GitHub repository were not affected, the breach put users at risk.

While Ripple CTO David Schwartz did not immediately respond to requests for comment, the blockchain's design and security concerns are unlikely to be resolved without a more concerted effort from the company. As one of the few remaining proof-of-stake chains, the XRP Ledger plays a critical role in maintaining network stability – an issue that cannot be ignored.

The ranking highlights the importance of addressing these issues to ensure the long-term security and sustainability of blockchain networks. It also serves as a reminder that no system is foolproof, and ongoing vigilance is essential for protecting users' interests.