Opinion: For long, the naysayers of the XRP Ledger have stated that the blockchain is centralized around Ripple, a company focused on solving for cross-border payments. Recently, however, the coin has achieved another level of decentralization, with only 27% of the validator nodes being controlled by Ripple on the default Unique Node List [UNL].
This translates into a higher degree of trusted third-party use of the XRP Ledger, thus spreading away control from Ripple, who used to control a majority of the validator nodes on the network. Another reason that many give to say that the network is centralized is that Ripple controls a majority of the supply of XRP, around 53 billion of it. However, this is locked up in an escrow smart contract, which means that Ripple cannot withdraw it as and when they please. The contracts expire every month, upon which Ripple can utilize the 1 billion XRP that had previously been locked up.
Even if a situation arose wherein Ripple wanted to take the XRP out of the escrow, the transaction taking the coins out would have to be validated and approved by 78% of the remaining nodes. Now, with the decreasing number of Ripple validator nodes on the XRP UNL, it would become simply impossible for Ripple to forcibly remove XRP from escrow, thus taking away control of the “centralized” supply of the coin.
With that being said, some of the new validators running on the UNL include Alloy.ee, an application hosting service specializing in hosting productivity applications, Bitso, a digital asset exchange and xRapid partner, a global Information and Communications Technology Services Provider called NTT Communications and Coil, a company based around utilizing the InterLedger Protocol and XRP to deliver micropayments to content creators on the Internet.
Other validators are run by BREX, a company providing real-time access to structured and official commercial register data, Bahnhof, a Swedish Internet Service Provider [ISP], and Business Register Exchange, a company that delivers a powerful API to give its customers instant access to global commercial register data. Companies such as Worldlink, a global technology firm providing talent, consulting and management solutions, and AT TOKYO, a leading company in the data center industry also run a validator on the recommended UNL.
Other validators can be identified as those being run by XRP Community members, as seen by Bithomp, a website maintaining a blockchain explorer for the XRP Ledger, Rabbit Kick Club, a website dedicated to running a node, and one validator each for XRP Community-based projects such as XRPChat and XRP Tip Bot.
There are also validators run by various universities around the world and are a part of Ripple’s University Blockchain Research Initiative [UBRI]. These include the University of Nicosia in Cyprus, the Korea University Blockchain Security Research Center, and the Information and Telecommunication Technology Center at the University of Kansas.
All in all, this provides an important move forward for Ripple and the XRP Ledger, with regulators seeing the divide in between the two. Moreover, it makes XRP more secure, as the nodes are now geographically and jurisdictionally separate.
XRP Price Stable Against Coinmotion Criticism
On Feb 15, the XRP is moving up slightly, trading at $0.3089.
Over a few weeks, the crypto has been forming a triangle, still without testing either the resistance or the support. The MACD is however moving up, which makes the resistance breakout at 0.3047 more likely; this may then push the price to 0.3230. The overall trend is descending, though, so once the resistance at 0.3047 gets broken out, the price may also be sent to the support at 0.2899 and then break it out, heading towards the midterm support at 0.2804, and the target at $0.2470.
Coinmotion, a crypto exchange based on Finland, added the XRP to its portfolio. At the same time, the exchange published an article called XRP Is a Centralized Digital Currency, saying that the altcoin is not really a crypto.
The article author, Pessi Peura, says the investing process shows that Ripple is more like a security than a crypto. Besides, the token is developed by a single company, which is risky: in case Ripple Labs loses its reputation in any way, the XRP will have big problems.
Finally, Peura says Ripple Labs is controlling its tokens, which is totally against the decentralized network principles. This is actually the most curious thing, as Ripple Labs says its token is autonomous, and no monopoly is possible.
Ripple has not commented on the article yet, but is likely to comment soon, as the company is usually quick at reacting at any criticism in the media. Most likely, Ripple Labs will say the usual thing regarding XRP having nothing to do with securities.
Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.
Bank-based Cryptocurrencies Not Realistic: Ripple CEO
ipple Chief Executive Officer (CEO) Brad Garlinghouse recently said that bank-based cryptocurrencies are not realistic and he believes they are “deeply misguided” for the entire industry.
These remarks come in the wake of the news reports that announced that the international bank, JP Morgan was all set to announce its own coin, JPM token. As earlier reported by Crypto-News India, the trials for the cryptocurrency, named as “JPM Coin” will begin in a few months and is designed for instant settlement of payments between clients. With the launch of its new cryptocurrency, the bank is preparing for the future to settle the transactions at lightning speed similar to that of Bitcoin rather than relying on old technology like wire transfers.
At the time, Umar Farooq, J.P. Morgan’s Head of Blockchain projects had said, “So anything that currently exists in the world, as that moves onto the blockchain, this would be the payment leg for that transaction. The applications are frankly quite endless; anything, where you have a distributed ledger which involves corporations or institutions, can use this.”
This is not the first time Garlinghouse expressed doubts about bank-based cryptocurrencies. In 2016, he had reportedly said, “A bank-issued digital asset can only really efficiently settle between the banks who issued it. Then, two scenarios can play out.”
Detailing those scenarios, the Ripple CEO had stated, “Scenario one: all banks around the world put aside competitive and geopolitical differences, adopt the same digital asset, agree on its rules, and harmoniously govern its usage. Fat chance. Scenario two (the more likely scenario): banks not in the issuing group issue their own digital assets with their own sets of rules and governance.”
Throwing in a good word about XRP, the CEO said, “We strongly believe banks need an independent digital asset to enable truly efficient settlement and we believe XRP is best positioned for that role.”
It remains to be seen, how exactly XRP intends to do what it had set out to do.
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Ripple new version of XRP Ledger 1.2.0 launched
- XRP Ledger requested to update the code before February 27.
- XRP Ledger 1.2.0 is more resistance to censorship.
The San-Francisco-based blockchain company Ripple is reported to have released a new version of its renowned XRP ledger 1.2.0. The new version is designed to improve user experience as well expand the range of services it is offering.
The users of the ledger are requested to update to the latest version before February 27, 2019. The upgrade is vital because without it, the server won’t be able to determine the authenticity of the ledger and in return transactions will not be processed neither will they be submitted.
What has changed?
The new version according to the team at Ripple, is more resistance to censorship. This means that the transaction being processed cannot be determined by any single entity. Moreover, the transaction will remain immutable after entering the ledger. While the previous version was resistance to censorship, the team claims that this version greatly improves the feature. Warnings will be issued if there are attempts to interrupt the working of the ledger.
Furthermore, the upgrade has integrated what is commonly referred to as MultiSignReserve amendment. Ripple has now made it easier who take part in signing transactions while reserving only 5 XRP. Other updates included bug fixing and removal of errors on two transactions.
The company has also launched a bounty program. Developers have been requested to review all the updates in the new version and communicate to the company in the event any vulnerabilities are detected.