Ripple CTO Addresses Impact of AMM Amendment on XRPL Performance

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.

Is any data available to review here, @JoelKatz? One of my core AMM concerns is not so much TPS, but increased CPU, I/O, memory usage, etc.

In these areas, is XLS-20 truly more impactful than the AMM?

Are you suggesting “network load/stress” concerns can be reduced by the… https://t.co/JDXYSRcCnf

— XRPGoat (@XrpGoat) October 10, 2023

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.

.. The performance testing exaggerates the impact of the AMM on ‘typical’ ledger operations because most payments likely won’t actually interact with AMMs nearly as much as they did in the testing. …

— David “JoelKatz” Schwartz (@JoelKatz) October 10, 2023

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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