Bitcoin Exchange manager Peura, XRP needs a significant number of the attributes that would qualify it as a digital money. Rather, composes the creator, it is an incorporated virtual money.
“What differentiates XRP from cryptocurrencies is that it is not based on blockchain, it is not mined and it is heavily centralized. Ripple network is a suite of different applications by Ripple Labs. XRP, is the currency of Ripple network, which the apps use.
Ripple doesn’t use blockchain in the traditional sense to secure transactions. Instead all the transactions are confirmed and secured in a method known as HashTree, which is patented by Ripple Labs…
The fact that Ripple is developed by a single company brings some risks that other cryptocurrencies don’t have to deal with. If the central organization, Ripple Labs, is compromised, it could affect the whole ecosystem.”
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Talking before the UK Parliament a year ago, executive of administrative relations Ryan Zagone made explanations to counter ramifications that Ripple controls XRP.
“The currency – to repeat – it’s not controlled by Ripple. We have a concentration of ownership, but we do not control that platform. That platform is open-source, and existed before our company. We came about and said, ‘Hey, we think that’s really interesting technology. Let’s build a company that leverages it.’ But we didn’t create it, and we don’t control it. So there is a separation there. We could go away. We could fail and go away tomorrow, and XRP and that ledger would still exist.”
He further said:
“As a centralized system it could also be easier to jump on than decentralized blockchain systems. Grand institutions such as large scale companies and banks are often quite conservative in adapting new systems. Centralized system might seem less intimidating than a decentralized one.”
According to the abstract from Peura’s paper “Deconstructing ‘Decentralization’: Exploring the Core Claim of Crypto Systems,
“This paper examines the common ways ‘decentralization’ is used in blockchain discourse, arguing that it is generally used to suggest that the systems are resilient and lack concentrated power centers. The paper critically examines the claims of ‘decentralization,’ providing examples of actions by core developers and miners within crypto systems that undermine claims of decentralization.
Finally, the paper’s core contribution is to examine the consequences of uncritically applying the term ‘decentralized’ to blockchain systems and making legal judgments based on it. The paper argues that in suggesting that blockchain systems lack sites of centralized power, the term “decentralized” in effect functions as a liability shield for those operating the systems (developers and miners), creating what I call a “Veil of Decentralization” and giving a core benefit of organizational law to participants in these systems without accompanying obligations.
Further, misunderstanding the power dynamics within blockchain systems can lead to faulty risk assessments, in that we may view the tokens of these systems as less malleable than they actually are. This errant risk assessment affects direct uses of the tokens as well as any financial products that use them as infrastructure, and may affect our understanding of them as commodities or money.”
Chinese Billionaire it’s right time to buy Bitcoin
Meanwhile the next wave of more promising ones will emerge from ashes, making 2019 both the best time and the worst time for investors and entrepreneurs.
So Bitcoin manager ,professor and Chinese billionaire had his views presented , but what do you think of it. Please comment below.