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Ripple CTO Comments on the Decentralization of XRP Ledger

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David Schwartz, the CTO of Ripple, wishes to clear things up regarding the decentralized nature of XRP.

Ripple Labs, the parent company of the third largest crypto by market cap, Ripple (XRP), has gone through many accusations of its token being centralized and security, instead of a real cryptocurrency. And while the company always defended XRP by saying that these claims are false and that Ripple’s network is not centralized, the large part of the crypto world has yet to be convinced of this.

This is why Ripple’s top representative, David Schwartz, decided to clear things up and talk about the XRP ledger.

Schwartz about decentralization

The definition of decentralization is pretty clear, and Merriam-Webster dictionary describes it as ‘dispersion or distribution of functions and powers‘. While this seems pretty straightforward, things can get a bit more complicated when the concept is applied to the crypto world. David Schwartz’s recent statement also mentions this, and he says that this concept is largely misunderstood. He also said that the concept is evolving, which makes its true meaning even more difficult to pinpoint.

His report called “The Inherently Decentralized Nature of XRP Ledger” is Schwartz’s attempt to explain things regarding XRP’s decentralization, and potentially put a stop to various accusations of Ripple’s centralized nature.

He continues to say that XRP is different from Bitcoin (BTC) and Ethereum (ETH), which are using algorithms called Proof-of-Work (PoW) in order to reward miners with coins for their service of validating transactions. Ripple cannot be mined, and instead, it uses a special consensus protocol through which validators verify transactions without rewards.

According to him, these validators are located all around the world and include exchanges, institutions, as well as individuals. This makes the XRP ledger truly decentralized and democratic, as it doesn’t provide anyone with full control over the coin.

Ripple’s CEO confirmed this and supported Schwartz’s post via Twitter when he also promised to talk about the subject himself during his next Ask Me Anything session (which is already completed now).

XRP more decentralized than BTC and ETH?

Schwartz then talked about the supposed decentralization of Bitcoin and Ethereum, stating that up to 58% of BTC network is being controlled by the 4 large mining pools at any given time. Even worse, 57% of ETH network is controlled by only three mining pools. As such, he claims that they are actually far less decentralized than Ripple itself.

Even though the US SEC declared that BTC and ETH are not securities due to the fact that they do not have central governing authority, Schwartz claims that the things are not as simple as that. He also stated that almost 80% of BTC mining is coming from a single country — China. That way, Bitcoin might actually be manipulated by one government. He even warns that there is a real danger of the top two cryptos falling victims to 51% attacks, and possibly have fraudulent transactions.

Then, there is Ripple, which needs 80% of its total validators to constantly support changes over the period of two entire weeks before anything new is applied.

Additionally, XRP operates only 10 out of 150 validators that are currently in charge of validating transactions. When it comes to changing things on the network, each validator only has a single vote to cast. In the end, Schwartz has stated that Ripple is controlling XRP much less than China is controlling BTC.

Finally, he stated his last reason, which should convince everyone that Ripple is truly decentralized, and that is the fact that its users need to select UNL (Unique Code List).

That is basically a list of validators that the users trust, and have chosen them themselves. That way, users are free to pick anyone as their validator, instead of getting someone assigned to them at random, or by company’s choice. With that in mind, he claims that Ripple is, and always has been, nothing less than inherently decentralized.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Brandon Mowinkel via Unsplash

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Aluna.Social is a Compelling Social Platform for Crypto Traders and Investors

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When one thinks about the social media landscape, the companies that first come to mind are most likely Facebook, Instagram, LinkedIn, and Snapchat.  These platforms are a great way to stay connected with friends, families, and colleagues, especially when geographic distance is a factor.  But, in addition to just chatting about life in general and sharing pictures, social media can be used to bridge the information gap that exists within the investment community.

Over the last decade, many trading offices have been established in large cities all over the world which allow solo traders and investors to pay a monthly fee in exchange for a workspace.  The real benefit to trading in these offices is to participate in the free flow of trading ideas and information.  Proprietary trading is one of the most challenging careers to be successful at and the exchange of ideas is almost required in order to succeed.  Traders at hedge funds and investment banks work in teams so why shouldn’t remote traders?

While these trading offices are a great way to help bridge the information gap, Aluna.Social may provide an even better way, especially as it relates to cryptocurrency trading.

Mission Statement

Aluna.Social, founded by Alvin Lee and Henrique Matias, is a multi-exchange social trading terminal for crypto traders and investors.  The goal of the platform is to help newcomers shorten their learning curve,…

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CoinFlip Scores Big with BRD Wallet Partnership

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As the crypto markets move closer to mass adoption, one of the keys for future success will revolve around attracting as many market participants as possible.  While many crypto users are extremely tech oriented, a lot of those on the sidelines are not.  The cause of waiting on the sidelines could be due to a variety of reasons such as fear of the unknown, lack of knowledge, age, or a combination of all of the above.  In order to entice new users to join the crypto revolution, crypto ATMs are rising up across the country.  Of those, the largest and most influential crypto ATM company by a significant margin is CoinFlip.

In early October, CoinFlip announced on its Twitter that it had officially partnered with BRD Wallet to re-introduce their crypto ATM map.  Now, BRD wallet users will be able to locate their nearest CoinFlip ATM and receive a 10% discount for both buys and sells.  BRD brand awareness is growing quickly within the crypto community thanks to its innovative and entrepreneurial spirit.  The team strongly believes in the value of financial freedom and independence, and want to empower people across the world by leveraging the possibilities that Bitcoin and other cryptocurrencies provide.

Cryptocurrencies are already making a huge difference around the world.  Citizens of Venezuela, a country devastated by rampant inflation, have been using several cryptocurrencies…

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Can Libra help the crypto industry to reach new heights?

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Libra is motivated and determined to change the face of payment procedures across the globe and make the blockchain-based project the leaders of payments.
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The market for cryptocurrencies started with the launch of Bitcoin in 2009, and since then, so many cryptocurrencies have been launched that it gets hard to keep track of them. The crypto market has seen massive growth in the past 3-4 years as it started gaining attention from mass media, which helped in this boom.

From the past 2-3 years, several new cryptocurrency projects were launching in the market. Amid all this, the social media giant – Facebook announced the launch of their cryptocurrency platform, and this news got viral like wildfire. The announcement came forward in June, and the upcoming cryptocurrency is known as Libra, and it’ll come with its dedicated wallet called Calibra.

What is Libra?

Libra is a permissioned blockchain-based digital currency which is being developed under the supervision of Facebook’s vice president, David A. Marcus. The cryptocurrency is under development in partnership with an independent, non-profit member Libra Association. Facebook is the second member of the project, and these companies aim to use Facebook’s user base for the promotion of the digital currency when it is launched. The transactions and the cryptocurrency will be managed and cryptographically entrusted by the Libra Association.

Note: Libra Association was established by Facebook to look after the cryptocurrency and the transactions, and it was founded in Geneva, Switzerland.

The development of…

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