Ripple is More Like Paypal Than Bitcoin, It’s Not Decentralized and Should Not Be Compared to BTC
Ripple has been doing a lot in recent times, to promote XRP and also put themselves in position to increase global cryptocurrency adoption and xRapid, is one of the ways the firm is doing this.
XRP, the third largest cryptocurrency by market cap, created by Ripple, is the bedrock of most of their solutions, as expected.
Just recently, the Siam Commercial Bank, Thailand’s oldest bank, officially announced a partnership with Ripple to handle cross border payments. This was after the bank ran a test of Ripple’s network and found that the network significantly increased the speed of these cross-border transactions from around 48 hours to 1 minute. However, regardless of all these, not everyone is impressed with Ripple.
Tone Vays, a derivatives trader and analyst has expressed his dissatisfaction with Ripple in a recent tweet. Vays takes a heavy shot at people who compare Ripple’s XRP to BTC, saying that the two assets aren’t at par with each other. His tweet read:
“Why do ‘intellectually challenged’ people continue to compare XRP to BTC. Ripple is not even a blockchain, not decentralized or trustless, etc. you should compare to PayPal, not Bitcoin. They are equally centralized, but PP (PayPal) is faster & is stable coin.”
True or False?
At the moment, Ripple applies blockchain technology as a viable framework for all the payment solutions it currently deploys to its hundreds of firms all over the world. However, among the firm’s projects, xRapid is the only one that delivers these payment solutions using XRP.
Speaking on the application of XRP as a good way to improve financial transactions globally, Ripple’s vice president, Asheesh Birla said:
“Here’s something where we’re finding a ton of value and providing a ton of value to our customers using digital assets to move money more efficiently. The commercial application of XRP in the international financial services is a critical milestone in Ripple’s bid to make cryptocurrencies and the underlying blockchain technology a part of the financial mainstream.”
Most people have agreed that Ripple’s solutions are good for the sector but there is still the question about XRP’s centralizsation. For most people, XRP is not exactly decentralised because Ripple still controls a large majority of all the XRP ever produced. However, it might be inaccurate to say that XRP is centralised.
XRP is not Dependent on Ripple
The founder of Ripple has come out in the past, to explain that XRP can operate without Ripple. Brad Garlinghouse said that if for example, something happens that forces Ripple to close up shop, XRP would still thrive. This was corroborated when Ripple’s servers were temporarily unavailable but didn’t affect XRP as it was still active.
The CEO of Gekko Capital Holdings, Sir Gordon Gekko, responded to the initial tweet by Tone Vays, basically saying the same thing. According to Gekko:
“It’s called Ripple labs, which XRP is created if Ripple labs closed shop XRP and its ledger would be fully functional, so it shows XRP is truly decentralized.”
Vays also said that PayPal is faster than XRP but this isn’t true. At the moment, PayPal’s network can successfully handle about 193 transactions per second while XRP on the other can do 1,500 transactions per second, more than 7 times that of PayPal.
Furthermore XRP is also somewhat stable. This follows the initial design of the asset as the go-to method for cross-border transactions. Anything other than some stability might affect that desired goal.
In another reaction to Vays’ tweet, a user – @ozornetembe – also responded, asking Vays if there’s any proof that even Bitcoin is not being manipulated by a select few. This essentially insinuates that some centralisation might also be attributed to Bitcoin. The tweet said:
“Tone, perhaps Bitcoin was truly decentralized post 7 years of its inception, but can you, without a doubt say bitcoin isn’t under the ‘control’ of a select few who can manipulate its price?”