Dictionary description: cryptocurrency
To give a precise definition of a term that denotes something so virtual and variables cryptocurrency is very difficult. If we are talking about cryptocurrencies, we can reduce everything to a single term, and this is the first such cryptographic asset that has appeared in the world – bitcoin. On the other hand, many enthusiasts consider a much wider concept and include a large number of different technologies in it.
Such controversy is about the third most extensive cryptocurrency in the market by value XRP, Ripple. It is owned by a startup company from San Francisco and is just one of its products.
At the beginning of this year, during the hard economic times and the period of massive oscillations and crises on the cryptocurrency market, the XRP managed to multiply its value many times.
And if this did not last long, it attracted a massive number of people who invested at their ripple coin wallets.
However, many do not even consider Ripple as a cryptocurrency. The public opinion is that XRP and bitcoin are heaven and earth. The company’s CEO, Brad Garlinghouse said the same in February. “Digital Asset” is a term that the company is keen to use. It may not fall under the proper definition of the cryptocurrency, but it certainly has the same performances and conditions that it determines.
What makes XPR different?
The decentralized system is one of the leading features of new technologies. It represents a significant difference from the old networks of centralized transaction control. In such an environment, information can be freely moved without the supervision of a third party, while respecting some of the secondary rules.
The XRP is a centralized central currency that does not hide its management. It is one of the most significant objections that people in crypto currents track the development of and believe that the XRP does not contribute to it. On the other hand, this organized way has a better effect than other major decentralized currencies. Even in the last month’s cryptocurrency exchange report, XRP “does not serve the public interest.”
In their defense, the developers of Ripple cryptocurrency point out that the algorithm thus set up is quite fast and more accessible to scalar transactions. It is also easier to secure it against other decentralized cryptocurrencies. They also say that the company’s goal is to decentralize XRP over time. This process takes place gradually and is already visible.
They talk about many Startups who are interested in working with the XRP. Ripple CTO, Stefan Thomas has long announced that this currency will be more decentralized than Bitcoin because it adds many more validators.
Let’s remind ourselves that analysts felt that Ripple would never open its sources. However, 2013, the company has exposed its code for the so-called XRP “full node,” which means that external viewers have been granted more insights and users for the first time could access the network.
The relationship between Ripple and XRP
Given that the XRP status is not entirely clear and defined, it continues to be closely related and dependable with Ripple. SEC has raised its concerns about XRP security because it does not represent the ownership stake in Ripple, which will undoubtedly slow down this company in attempts to push XPR as the leading currency in exchanges.
Critics suggest that this is not a small issue if we take in account the way the initial coin was launched at the start. Speculation or truth, Ripple offered XRP tokens on the popular bitcoin forums, and if the attention to this currency was to grow, the company’s policy was to paradise it.
For the benefit of the company, the opinion is that its business does not directly affect the value of the cryptocurrency. Some also believe that all financial products on their platform are more accessible, faster and cheaper. The development team, even when exposed to public criticism, holds to original XRP ideas.
Do banks believe in the XRP?
And if all of Ripple’s business is focusing on large banking entities, the interest and confidence of the other party are questioned. Nevertheless, there is a large number of financial companies using their services. In addition to the xRapid product, which is the only one directly linked to the use of XRP, many also opt for other products such as xCurrent and xVia.
Critics believe that the XRP will never be sufficiently accepted as a cryptocurrency because it is hazardous.They think that Ripple is trying to connect incompatibly – RipplePay allows local communities to gain greater control over cryptocurrencies, while bitcoin implies precisely the opposite, digital non-controlling currency. Such a system, according to many, will not lead to the company’s ultimate goal, and these are faster and cheaper payments.
On the other hand, Ripple believes it is on the right track. Once it penetrates into the territory of banks, the XRP will be the free currency crypt. As the user’s network grows, the value of XRP will increase, according to the company.