Topic: Ripple is less decentralized than BTC and ETH, but that’s not necessarily bad (Read 487 times)

Decentralization is not so important and affects the price of XRP, the real problem that makes XRP price always go down is that XRP has an unlimited supply, and every quarter there is a large amount of XRP unlocked for Developers. So the price of XRP is difficult to go up, in 2019, a lot of altcoins have collapsed, but for XRP its price is stable and not falling too much. And keeping the price of XRP as stable as it is now is a great success for XRP.

Agreed, you can't ignore the fact that the cryptoasset is currently holding the 3rd highest market cap. While cryptocurrencies did start off decentralized, and there is certainly a valuable and important aspect to this, it's also worth noting that with innovation comes backlash. Ripple is injecting the power of digital assets into a mainstream, banking system, offering to them inclusion and a small chance to be a part of this crypto movement. They also offer excellent use cases as mentioned in a previous comment.

If you're not sure you're ready for the odds of trading XRP, try trading on eToro. I've gotten into it as a learning tool and have found myself quite addicted. I've made some money off correctly predicting the market movements of XRP, and a few other cryptos and stocks, and really enjoy the process. Centralised or not

We quite agree - XRP should be celebrated as an excellent use case of digital currency, and on top of that to be catering to a different market (or corporates and banking sector). XRP deserves the recognition, they are in a league of their own.

Agreed, Ripple has a lot of potential. I also appreciate that the company, despite its centralization, is catering to the mainstream masses (through corporates). By making their digital asset applicable to the banking system, they're really a few steps ahead. As soon as big corporates appreciate the power of crypto, I think its all systems go for mass adoption, XRP and otherwise.

However, centralization is not the problem. The problem is in Ripple promoting their platform as decentralized but it is not. Would this not make it appear like a scam?

Ripple is centralized there's nothing as less decentralized. Ripple is being controlled and mi Ted. Y group of persons whom has the highest amount of Xrp stored in their wallets. Let's  Xrp what it is a centralized token.

I do not see the biggest problem in a centralization, thanks to centralization they can provide much faster transactions (high TPS). But the problem is in a big supply and in a big inflation rate - team continously unlocking new and new coins.

Bitcoin, ethereum and monero has far little and almost no flaws when compared with these shitcoins and they are decentralized to an extent and can be worked even better with advancement to destroy these useless alts miserably. You can call me a bitcoin shill but I can always talk positively about bitcoin and other two major currencies and can trash other useless currencies.

Bitcoin has higher confirmation times but they can be eradicated in future with the better development and usage of lightning network and probably developers do come up with additional tech as well. Similarly monero is highly decentralized and is a privacy centric coin which can have major breakthroughs in dark web marketplaces. Ethereum functions like a world computer and companies can use them to create their own blockchain based tokens.

Individuals who are quite newbies or doesn't really know the purpose of these three would be moving for other currencies and many of these alt/shitcoin traders look for get-rich-quick ponzi schemes. Bitcoin was created to counter physical/government backed currencies, Ethereum was created for promoting blockchain to a greater extent and none were created to trade.

Although ripple has both hardcore suplorters and bashers as well, i personally place myself as a neutral person among the ripple community and i think whatever the speculation and criticism there is in the end ripple is going to breakout and make its move that could be bigger than ever because i think at this point xrp is undervalued and is just in its accumulation phase ready for big run.

I don’t understand what you care about decentralization of this or that token / coin when it comes to generating income. What is the point of decentralization? If a decentralized asset is sold and bought for money, then it becomes very centralized and manageable) and if so, it is predictable (which certainly makes smart people richer). I remember a holiwar because of the centralization of XRP in early 2017. But the price increase calmed the hot heads

They are requiring it because they are centralized.

It's not debatable if it's about them being centralized. I don't understand why it's being described as "less" decentralized but the fact is that they really are centralized. I also saw a whale report that a huge amount of XRP from escrow wallet was transferred. Just saying, and what could be next? 

Yes, basically it destroys the main purpose of crypto. Though it has own flaws we still couldn't deny the fact that bitcoin, ethereum or even monero has its own negativity. But at least these mentioned crypto are all performing well in the market. I couldn't say more as the answer would more subjective, because in the end, choosing among the crypto currencies still depends on the individual's preference, and the benefits of the crypto has to offer that surely will fit to benefit them the most.

Ripple serves the banking system and does it well. The banking system is centralized, so ripple should be the same. However, this coin is also very popular as a means of payment. Yes, this coin is special and stands out among cryptocurrencies. In order for the cryptocurrency to develop, we need exactly the diversity in development. Over the past few years, the attitude towards this coin has changed for the better and this is good.

It may not be a bad thing in terms of the investment point of view - the fact is that XRP will likely experience a substantial pump if institutional investors actually were interested in investing in cryptos, simply because of the fact that XRP is probably the most integrated of all cryptos to traditional institutions.

However, in the long run, I still think that decentralization is the trend and there is no denying that.

So if long term, there is a grassroot movement towards decentralization, I doubt that XRP will be able to reap any benefits of that movement.

Decentralization affect everything. What would happened if all cryptos are controlled by someone now? Imagine all the chaos will disrupt on the global world. Tax impose is clearly the goal of government that's why they trying to dominately control the crypto. Satoshi's goal is to make a peer to peer transaction to avoid this. If XRP is a good coin then let them show their worth. Full of manipulations are not a good coin for me.

Did you make the search on Google yourself? Please tell us what you learned.

Ripple have several questionable centralized features. But it does not mean they have zero decentralized feature at all. Moreover, working with the banks do not necessarily make the project centralized. They are not the banks themselves.

This is highly debatable and different experts have their own take on whether Ripple is really decentralized or not. One thing though is that there is nothing central to shut down with Ripple.

Are you serious? You have no idea about Ripple.XRP is centralised.They are working with bank.You think Bank is centralised?  If not the how can Ripple centralized.Better to gather knowledge. Search on google "Is ripple Centralized or decentralised "             

Agreed! Also, what most of the people in the cryptospace do not know is when a user wants to run a node, he needs permission from Ripple for his node to become part of Ripple's unique node list to become a validator. You should not need this permission.

XRP is formed as a centralized platform to serve the banking industry and for other transactions support. The team holds a big volume as reserve, and this will be released to the circulation at specific time interval. This way even on a centralized functioning it is quite good to have a better market growth. At times the team manipulate the price for profiting, which shows the centralized system a flaw in cryptocurrency and this is wrong thinking.

I don't think such thing as decentralisation plays the main role in price forming here in crypto. There are many other factors which affect coin price more straightly. And Ripple shows this pretty well. XRP is centralised, so what? Look at the graph - you definitely can earn some cash here

That is not the case as you have rightly said as it is making the necessary wave and has not gone beyond the top 5 for the past 3 years. If it gains more adoption in the financial sector, that will pave the way and makes it remain stronger than before.

Of all other cryptocurrencies that fall under the category of "not fully decentralized", XRP is the most useful one. Indeed, Ripple will remain in the CoinMarketCap because it is an important crypto in the market for some transactions. It did contributed a lot for small transactions and personally, using XRP is good thing for bank transactions for me.

I wouldn't dare to use ripple as a store of value, but i sometimes use it if i have to transfer smaller sums between exchanges. The reason i wouldn't use it as a store of value or to move bigger amounts is because it's centralized and can be stopped.

Those people are still buying the ripple centralized coin right now are the investors of ripple. Ripple never be a swap tool as the developer will never try to focus on the coin development but the developer just wanna take the orders from the bankers to create a copycat from the ripple blockchain to be implemented into their system.
You are totally joking about the price. I thought it's better if you tell jed and foundation to not dump their tokens to the market and that will make the price of ripple to go up again.
Billion coins already reserved to be dumped into the market.

Pretty much this. Ripple and their coin XRP is highly centralized destroying the purpose of a cryptocurrency. The basis of decentralization i.e mining is not really present in Ripple and the way they centralize and trying to gain power in the cryptocurrency space is not really good.

Either way centralized coins like XRP and the ecosystem like Ripple doesn't have a long way to go unless the real purpose of bitcoin starts to emerge on the market. I am a Bitcoin, Ethereum and Monero supporter and so well I do hate other coins as well. All 3 of them have a purpose in the cryptocurrency space and are highly decentralized when compared to a coin like XRP. On top of that, they are gaining interest from banks which isn't really pleasing for crypto enthusiasts who does hate the centralized mechanisms of banks.

I do understand your point, centralization is not a bad thing, and I do not understand why it seems to be demonized in this space, the main problem I have with Ripple is what is the function of their tokens, they premine their tokens and keep dumping it on retail traders (I can't call them retail investors because Ripple do not see those that hold the tokens has investors), Ripple just raise money for VC's recently and from the talking point of the CEO, it seems they do not value tokens holders contribution to the success.

I understand pretty well that there are some crypto enthusiasts against XRP because of its centralized nature, but yet it doesn't stop it from being 3rd position with regards market capitalisation. I read through the points made by OP and there is some sense in it, even though decentralization was a core aspect of crypto from onset. Ripple has achieved many remarkable products and partnerships over the years, hence its the more reason why I'm considering to hold some this 2020.

people do not understand that there are rumors around ripple and discussion and this is the most important thing if you want to make money on it. people who do not buy XRP because they consider it an empty - are fools. I also think that this is a useless coin, but I buy it because I know where there are rumors and discussions - there will be growth. maybe not now and not tomorrow, but one day we will see a pump

Who are the investors of XRP? There's constant advertising news. However, we cannot call Ripple a complete swap tool. Ripple made a deal with many banks. The price of Ripple may rise again in 2020. Already returned to the price 2 years ago. You can go up this level.

 If you are looking to provide some sort of legitimization towards ripple than you will find it, Ripple has been around for a looooong time, I remember the big trio when this all started with bitcoin, litecoin and ripple, before all other altcoins they were there, there was also some weird coin like namecoin or something that you could mine while mining bitcoin as well but that wasn't really that big of a deal even when there were handful of coins. So you don't have to defend ripple, they are doing very well, for a company in crypto industry that is as old as any other except bitcoin they just raised 200 million dollars in seed money so of course the company is doing awesome.

 However if you think that XRP is valuable or has anything to do with Ripple you are only kidding yourself. We are talking about a coin that is used by the company to transact money from one place to another and it has absolutely no other purpose at all, even Ripple is getting money from outside instead of using their own money most of the time, so xrp is worthless and useless, it has no utility and definitely doesn't make anyone any money except the owners of ripple, what good could you have from a coin that can be printed out of thin air whenever owners wanted, I would keep on using fiat if thats what I was looking for.

doesn't matter whether you say it's less decentralized or not the whole point XRP is just centralized and a haven for bankers disguising as decentralized crypto and you can't change my mind about that. Though, it may not necessarily bad for certain people who just expect some profit out of any crypto out there and the fact that it could climb up its way to the top among any other top tier crypto is undeniable but the rumours revolving around XRP is such a huge turn off for me.

Have you read the whole post? It was said to be "less decentralized" not more decentralized.

Anyway, back to the topic. I always uses xrp rather than bitcoin because of it's fast transactions and less fees. In a few seconds an instant xrp will be received. And when it comes to being less decentralized, it doesn't matter. Xrp is still different from btc and other coins. It has strong impact because it was widely used by some institutions.

People should clearly distinguish XRP and Ripple, xCurrent is the most used among Ripple platforms and it does not use XRP. In fact, XRP is not necessary for Ripple technology. Moreover, the volatility of XRP cryptocurrency on exchanges will prevent it from becoming an online payment mechanism.

Yes, compared to ETH it is very far because ETH is much more rapidly developing with the birth of a decentralized token that is successful even today there are still many fans and I think that thanks to ETH there are also so many tokens that have value.
While Ripple as I know it is only centralized and used by large companies and it is true that you say the purpose of Ripple and BTC, ETH is very different so it cannot be the same.

Ripple is not less decentralized but total centralized, it's good for the project though and I believe that's why it manages to win the heart of many investors, comparing it to ETH and BTC is not a fair comparison

man, ripple is a centralized coin even the owner acknowledges it, and some banks work with ripple because they might have access to it, so the difference is very far from BTC where everything is decentralized.
so it can't be compared to these two coins having different goals I think.

Ripple always triggers a polemic, between centralized or decentralized. Everyone in this forum knows and agrees that ripple are not decentralized, but this does not mean ripple are a bad investment. Many partners from banks to large institutions are proof that ripple has potential that can be attractive to investors.

Indeed the purpose of investment is to make a profit, therefore people choose ripple, they choose profit rather than decentralized  

If ripple (XRP) is bad and no real use at all, it wont stay any longer in the CMC ranking currently at number three, as we all know that most of the cryptocurrency has its own negative issues, even bitcoin and Ethereum was not spare in these negative issues that's why for me it doesn't matter if XRP is not "fully decentralized" or not decentralized all i care is XRP was useful and effective in the real world use case specially for cross border payments and overseas remittances. i'm not comparing bitcoin, ethereum to the XRP but as a cryptocurrency that contributed a lot in these industry its should be recognized accordingly.

No one can explain me the logic of comparing BTC to XRP. It may not be correct to compare any coins with XRP. Therefore, do not go to such comparisons in vain. Always BTC and ETH> XRP!

Ripple is a company issued cryptocurrency. So "less decentralization" is an understatement. Ripple is not at all decentralized! They are actively working with few banks like Kotak Mahindra, Indusind, Santander etc. And they claim to have around 300 clients from mainstream financial sector. They can't be decentralized and serving Banks at the same time for money transmission activities!

But yes, Ripple is a well developed coin. The company is actually trying their best to partner with real world businesses which can bring revenues to the company. So the future of Ripple is good and I have no doubt about it! But it's just not decentralized!

This actually loled me. 

Ripple being less decentralized or more with the description of these establishments and articles, this will not replace the fact that it's a centralized coin. From the very beginning of the article, if you have understood it correctly, half of the supply is in escrow and they are always boasting the partnerships with the banks.

How it can have a part of decentralization?

I admit that Ripple is a fairly well developed coin but I don't agree if Ripple is more decentralized than BTC and ETH, ok don't take BTC but ETH alone as a comparison of its development, ETH has given birth to many decentralized tokens up to now and Ripple did give birth token also but less highlighted by enthusiasts of cryptocurrency

Grayscale, an institutional crypto asset management company, recently released a report analyzing XRP’s coin history, protocol, price, transaction speed and more. According to the report, the early developers of the XRP Ledger focused on creating a fast protocol that challenged established financial systems. Grayscale found that Ripple is less decentralized than BTC and ETH, although it remains the third largest cryptocurrency by market cap.

What is Ripple?
According to eToro, Ripple is the company behind XRP, RippleNet and the XRP Ledger. Ripple uses open-source technology to beat Bitcoin in speed, and financial institutions and banks in fees. Ripple launched in 2012, and has a market cap of $9,8 Billion at the time of writing.

There are 100 billion XRP in rotation, 49.9 billion of which are in escrow. There is no mining of XRP, since all tokens are premined so that they can be traded with the lowest transaction costs possible.

https://www.youtube.com/watch?v=UmaWDpg4fMU&t=12s

Grayscale Report
Grayscale wrote,

“XRP sought to eliminate high transaction fees and long processing times driven by institutions, and like most digital assets, addresses the double-spending problem, which is when third parties are needed to monitor counterfeited money or forged transactions.
 
Developers integrated features including a consensus algorithm and escrow schedule in lieu of a blockchain protocol and mining rewards, as well as incorporated a suite of commercial financial products. In doing so, XRP has gained momentum amongst both financial institutions and individual users.”

The Grayscale report highlights the decentralized nature of the XRP Ledger, and looks at the way transactions are conducted on the network. However, Grayscale notes that Ripple’s efforts to expand the XRP network, and consequently its ownership of more than half of all XRP, makes the blockchain decidedly less decentralized than many of its competitors, like Bitcoin and Ethereum.

Highlighting two further points, Grayscale said that the XRP and XRP Ledger are less decentralized because of Ripple’s involvement as a driving force behind adoption, the number of XRP that the company and its founders hold, and the fact that there’s a high concentration of the overall XRP supply located in just 100 of its top wallets.
https://www.youtube.com/watch?v=0gSGqHqdlc4&t=87s

What does this mean?
The fact that Ripple is less decentralized than BTC and ETH isn’t necessarily a bad thing for investors. Although it goes against the principles of decentralization, Ripple has placed the vast majority of XRP in escrow to reassure investors. Ripple cannot sell all of its holdings at once, which protects investors in the coin. However, Grayscale did say that there is still a risk that “large and/or sustained periodic sales could place pressure on the price of XRP.”

Now’s as good a time as any to get in on XRP. If you don’t want to commit too much to start, why not consider trading on a platform like eToro? The platform allows you to copy professional traders, or earn from accurately predicting the cryptocurrencies movements.

What’s next for Ripple?
So, Ripple is less decentralized than BTC and ETH but that’s not necessarily a bad thing for investors. Ripple remains the third largest coin by market cap, and is actually performing fairly well at the moment. Less decentralization makes for a coin that investors want to trust, and that’s good for the blockchain - whichever way you look at it.

https://nulltx.com/ripple-is-less-decentralized-than-btc-and-eth-but-thats-not-necessarily-a-bad-thing/