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Ripple CTO Comments on the Decentralization of XRP Ledger

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Ripple

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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GDA Capital in Conversation About the Future of Digital Assets at Global Family Office Summit

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GDA Capital organized the quarterly Global Family Office Summit this week. The event was held virtually with a number of technology leaders and high net worth investors who discussed issues such as education, trust and responsibility to give back. Among these were insightful conversations with Dubai-based Dalma Capital’s CEO Zachari Cefaratti, Holt Fintech Accelerator founder Brendan Hold Dunn, Global Data Sentinel CEO and White City Ventures Chairman of the Board Shahal Khan, and Elitium CEO Raoul Milhado, among others. Participants were also given access to off-market opportunities to invest in novel technologies.

Will Bartlett, GDA Capital’s Director of Research, headlined the event by focusing on tech in the modern economy, and identifying six sectors where new technologies can make a lasting impact: robotics, space, biotech, machine learning, quantum computing, and blockchain. In the context of blockchain, he discussed how digital assets are a hedge against traditional financial markets. “Cryptocurrencies have no exposure to stock market returns, macroeconomic factors, or returns of currencies and commodities,” Bartlett said.

More so, Bartlett believes that new models for digital assets such as DigitalBits’ branded stablecoins are key to the development of the field. These currencies replace traditional rewards and loyalty point systems that are commonly used by household brands by porting them to the blockchain. Meanwhile, they rely on brand…

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Chainwire Launches Blockchain-Focused Automated Press Release Distribution Service

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TEL AVIV, Israel, 13th October, 2020, // ChainWire //

MarketAcross, a world leader in blockchain public relations and marketing services, is pleased to announce the launch of Chainwire, an automated press release distribution service which provides guaranteed coverage and in-depth reports. Chainwire will be a one-stop-shop for the distribution of press releases in the cryptocurrency and blockchain sector. The launch marks the first time that advertisers can reach leading publications in the crypto media with the click of a button. 

While most industries have some kind of PR newswire service, the cryptocurrency sector has become a victim of its own rapid pace of growth over recent years. Since the ICO boom of 2017, there has been a proliferation of blockchain and crypto-focused projects, exchanges, investment firms, and marketing agencies, along with niche news and informational content sites. 

However, the infrastructure to connect this complex ecosystem has been slow to come up to speed, meaning that existing newswire services don’t reach their target audience. It’s estimated that one in five people own cryptocurrencies, so there is currently a significant missed opportunity to reach a massive global readership. 

As a newswire service dedicated to the crypto and blockchain space, Chainwire aims to address this gap. Press releases are distributed to leading publications, offering guaranteed coverage to reach audiences worldwide. The system is integrated with publishers and blogs, enabling accurate reporting via a user-friendly dashboard. It also…

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Messari Adds DigitalBits (XDB) & Branded Currencies to its Registry

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One of the top providers of crypto data and research tools on digital assets Messari has announced the addition of DigitalBits (XDB) to the Messari Registry. As a participant, DigitalBits governing body, the XDB Foundation will be providing regular updates and commit to transparency. The DigitalBits blockchain was built to support consumer digital assets – branded currencies.  As the company stated, “a global, legacy digital asset class, branded currencies play a vital role in consumer-brand interactions, and account for billions of dollars in value.  Branded currencies issued on the DigitalBits blockchain will also be included within the Messari Registry.”

Additionally, Messari and the XDB Foundation “may explore the buildout of a novel registry to accommodate branded currencies tokenized on DigitalBits. This registry would address issues consumers face when determining the legitimacy of branded currencies and their respective organizations,” the announcement said today.  The goal is to provide a standardized framework for organizations leveraging branded currencies, certifying asset legitimacy, and clearly outlining characteristics including but not limited to asset issuance and organization identity.

Commenting on the news, Messari representatives said they recognize the potential for the use of branded currencies to grow in the future as more enterprises embrace blockchain technology. Ben O’Neill, Vice President, BD & Operations at Messari said the Registry will help all…

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