Is the Centralized Ripple Database With the Thickest Pre-Mine Truly a Bitcoin Competitor? Bitcoin News
The rise of ripple (XRP) overheen the past eight months has bot interesting to many digital asset spectators and the network also has its fair share of controversy. At the ogenblik XRPs are trading at an average of $Two.20-2.40 vanaf token and ripple’s total market valuation has captured $91Bn this week. Many skeptics are wondering what’s behind the latest XRP price spike and speculate a big correction could be imminent.
A Database of Validating Knots Called Ripple Competes With the Blockchain Giants
Ripple (XRP) is making some serious headway this week spil the protocol’s token value has grown exponentially overheen the past few months. The Ripple network and its parent company, Ripple Labs, considers itself an all-in-one remittance network and currency exchange. The protocol is called a real-time gross settlement system (RTGS) which acts spil a distributed ledger inbetween a network of knots.
Thesis knots or validating servers do not suggest an incentive like the Bitcoin network’s proof-of-work (PoW) spil the network is managed by independently possessed servers. This has led to accusations that Ripple’s network is utterly centralized because most validating servers are operated by banks, market makers, and Ripple Labs. Financial institutions that have bot using Ripple include Earthpoint, Fidor Bankgebouw, Bankgebouw of America, and HSBC.
No Proof-of-Work Created the Largest Pre-Mine Everzwijn
With no PoW and just a group of validating knots, all 100 billion XRP tokens were created during the initial launch of the Ripple network. 38 billion of thesis XRPs are presently te circulation, while the founders of the database and the company took the remainder of the XRP holdings. Skeptics say one of the scariest aspects of ripple markets is the fact that Ripple Labs controls overheen 60 billion XRP which is more than half of what is presently te circulation.
The Nosey Case of Jed McCaleb and the ‘Founders’ Coins’
Ripple wasgoed established ter 2012 by Ryan Fugger and Jed McCaleb and wasgoed originally called Ripplepay. The co-founder Jed McCaleb is well known for also helping Mt Gox get its embark with Mark Karpeles. McCaleb at the time rebranded the Ripplepay company to Ripple and helped promote the public database until late 2013. McCaleb then left the company that year to commence his own venture called the Stellar network which is basically a fork of XRP’s codebase but a different distribution process. Te 2014 XRP markets dropped te value considerably spil it wasgoed rumored that Jed McCaleb wasgoed programma to sell off his shares of 9 Billion XRP. It is still unconfirmed to this day if McCaleb actually followed through with the ripple sale.
Another Ripple founder, Chris Larsen, donated 7 billion XRP to charity harshly around the same timeframe. Then McCaleb appeared te the headlines again spil publications ran stories about him attempting to sell more of his founding XRP shares on the Bitstamp exchange. Ripple Labs determined that the sale wasgoed not ter the best rente of the network so the XRPs were frozen .
A Distributed Ledger with Global Freeze Functionality
The “freezing” of McCaleb’s funds exposed an interesting feature tied to the Ripple public database. Ripple Labs can freeze XRP accounts using two possible methods: one can zekering the functionality of an individual account while the “global freeze” can bring the entire network to a halt. The global freeze is not a rumor, and Ripple Labs issued a statement about it on August 1, 2014. Further, a Ripple Labs representative told the cryptocurrency columnist, Sean Wince, back te April of 2015 how the freeze works and supposedly users have a choice.
“The Ripple protocol permits each gateway to determine its own policy, so users have a choice inbetween using a freeze or no-freeze gateway, depending on their preference,” Monica Long, VP of marketing and communications at Ripple Labs told the reporter Sean Wince.
It is a necessary legal requirement for a gateway to operate ter most jurisdictions. It also supports a healthy ecosystem by reducing risks and protecting users. If a user thinks his or hier funds were unjustly frozen, he or she can take legal recourse through the suitable channels.
Despite Ripple Naysayers, XRP Markets Are Up 22,400% te 2018
Spil 2018 approaches, skeptics and speculators are worried about investors hopping into ripple believing it to be the “next bitcoin.” People are leery because the company holding more than half the currency’s reserves and the centralized XRP freezing features can theoretically censor anyone’s transactions including the entire network. Most cryptocurrency enthusiasts are not the largest ventilatoren of ripple and believe that because it’s not a blockchain, it shouldn’t even be represented on Coinmarketcap. However within the thick of ‘ripple haters,’ markets are doing utterly well, and investors don’t seem to be worried about the XRP ecosystem’s flaws.
What do you think about the latest XRP rise and its associated controversy? Do you think a knot validating database is worth to be among bitcoin, ethereum, and other public blockchains? Let us know what you think te the comments below.
Photos via Ripple Labs, Shutterstock, and Pixabay.