Ripple- A centralized Currency- Is it a real cryptocurrency?

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As the third largest cryptocurrency by market cap this might seem hard to believe.

To understand why it is so, one needs to ask why truly is the cryptocurrency revolutionary? The answer lies in something that was never possible before. A medium to transact without the need of a trusted central party.

CXIHUB explores the issues with Ripple and declares its verdict.

Concerns About Ripple

Premined-

One of the biggest concerns about Ripple is the fact that unlike Bitcoin the currency is premined. This means that all the coins that will be in circulation already exist and are at the hands of a few parties. The concentration of such power at the hands of a few is where centralization of Ripple is showcased, and as history proves, makes it bound to fail sooner or later.

The coins in existence are 100 Billion XRP. Out of these more than half of the coins are still owned by the company itself, such concentration of money and power makes the currency seem dangerous alone. Concerns about this came true already when the outed founder McCaleb tried to sell 20 Billion XRP at once.

Ripple is a Company-

Bitcoin is an open source system which nobody can claim to own. All members of the public contribute towards its improvement which are carried out in a democratic way through mining. Decisions in Ripple developments are made by Ripple company which owns offices in many parts of the world. In this sense the Ripple coin is nothing different from other virtual currencies while masquerading as a truly revolutionary cryptocurrency.

A shenanigan by banks?

The progress made by Ripple is largely attributed to its close relations with many banks and its industrial application in the banking industry. However many people consider this a point of concern, they believe that this is a cryptocurrency in disguise launched by the banking consortium themselves to eatup market share of true cryptocurrencies such as Bitcoin, disillusion the public and eventually make them lose faith in cryptocurrencies.

A time came in the history of cryptocurrency when Bitcoin became slow and the fee to transfers became high, many alternatives did not exist at that time and this swayed people towards Ripple, which called itself a revolutionary fast currency. But today the situation is not the same, Bitcoin has solved many of the issues that existed through many improvements such as Segwit, the Lightning protocol, and may wonderful alternatives exist to Bitcoin that are indeed revolutionary. Ripple thus at this time seems nothing more than a failed, faint imitation of a cryptocurrency, a currency which everyone should be cautious of.  

CXIHUB verdicts that the foundations of cryptocurrency are laid on blockchain a method which is essentially decentralised, any mutations of the concept that lead to a centralised power are nothing short of a fraud and a scam.



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