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Ripple considers its cryptocurrency XRP more decentralized than Bitcoin and Ethereum

Ripple considers its cryptocurrency XRP more decentralized than Bitcoin and Ethereum  - reippls bitcoin2 min

Decentralization has a special meaning for many crypto trailers. Added to this is the US Securities and Exchange Commission, which some time ago stated that Ethereum was not a “security” within the meaning of US law because it was “sufficiently decentralized”. This has become another incentive. Many Altcoin projects see decentralization as an opportunity to escape the regulators.

Ripple seems particularly vulnerable, because the company owns a large part of the ripple coins. Therefore, Ripple has made great efforts to spend his Ripple XRP through business partnerships and charity giving. However, since Ripple holds billions of XRPs, it could take decades for Ripple Labs to have a minority stake in them.

So, there is a risk that the SEC will consider the Ripple XRP coins as securities. This is one of the reasons why the crypto-exchange Coinbase Ripple XRP has not been listed so far. In addition, several lawsuits against Ripple, which is also about the question of whether Ripple XRP is a security. The company has every reason to present its cryptocurrency as decentralized as possible.

The ripple CTO David Schwartz now has a blog post under the title “The Home-Decentralized Nature of the XRP Ledger”. In it, the CTO describes the separation between the Coin and the company. He continues there:

“As Bitcoin and Ethereum become increasingly centralized over time, the XRP ledger becomes increasingly decentralized.”

Below Schwartz writes:

“The XRP ledger has always been decentralized by default, because users always have the option of changing their UNLs [Unique Node List] and thus the validators who have they trust. “

Finally, Schwartz explains that the ripple validators have no significant impact on the XRP ledger. However, the company BitMEX Research had found in an independent study:

“Since all keys are downloaded from the Ripple.com server, Ripple has the ultimate effect of driving the ledger forward. It could therefore be said that the system is centralized. “

By the beginning of January, Schwartz had stated that his” main goal for 2018 “was to drive forward the decentralization of Ripple. This is an honorable goal for several reasons. His current claim that Ripple XRP is more decentralized than Bitcoin and Ethereum, however, has met with skepticism. The presentation, proof-of-work coins would be centralized by the growing power of the mining pools, is misleading. Because there are many other reasons why Bitcoin and other cryptocurrencies are decentralized. This includes, for example, the fact that you can not pre-charge a CEO or CTO at any lawsuit, as is the case with Ripple.

In a question and answer session, ripple CEO Brad Garlinghouse recently said: “It's perfectly clear to me that XRP is not a security.”

Ongoing litigation is likely to show whether US judges share this view.

Sources: Ripple, BitMEX, Twitter, Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/ripple-haelt-seine-kryptowaehrung-xrp-fuer-dezentralisierter-als-bitcoin-und-ethereum/

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