The Finnish Coinmotion marketplace claims that the XRP token belonging to Ripple is not a real cryptocurrency.
It is not known whether the platform chose this thesis for the promotion of its new XRP market, but a few hours after the start of the listing, Ripple published an entry on the official blog titled: “XRP is a centralized virtual currency”.
What is it actually about? We already quote:
“What you really need to know about XRP is that it is not a digital asset in the traditional sense of the word. This technology is not based on a block chain, it is not extracted in any way and it has a highly centralized character. The Ripple network is nothing but a set of different Ripple Labs applications, while the XRP token is the currency of that network, used for payment in these applications. ”
In addition, the stock market decided to introduce the issue of tokens:
“XRP is not extracted in the same way as in other traditional cryptocurrencies. All 100 billion coins have already been created. Ripple plans to launch about half of them, while the other half – keep it to themselves. Such activities do not meet the basic standard of virtual tokens, where the community makes decisions. Ripple has a monopoly on the market and controls the “extraction” of new coins “.
What is Ripple?
Ripple (XRP) is a token created by Ripple Labs, headed by Ryan Fugger. In the form under which we know this project today, it has been functioning since 2012. However, its roots date back to 2004, when Fugger began work on a decentralized payment system that saw the light of day as RipplePay. It was only after 8 years that he launched his product on the market.
The main task of Ripple is to support financial institutions around the world in fast and cheap transfers across the world.
It is characterized by a greater transaction throughput than Bitcoin, and allows easy integration with existing banking systems. Today Ripple is used by m.in. through UniCredit, Credit Agricole, UBS or Santander.
What’s noteworthy Ripple can not be kicked. The total number of coins is 100 billion, but 70% is controlled by the creators. Every month, another billion coins pass to the market. If the project does not include miners, so how does the whole work in practice? The explanation for this process is even simpler than in the case of bitcoin blockchain. Imagine that a client of a bank in Warsaw using Ripple wants to send cash to his contractor from New York. To do this, you only need to log in to your bank account and select the recipient. Later, the banks communicate with each other directly through HTTPS to determine the risk and to ensure transaction compliance. The Ripple network is not decentralized and distributed.
Remember that you can also trade XRP on Bitmarket.