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Author: Admin | 2025-04-28
Important to recognize that XRP is still traded over a blockchain network. This means that it has the characteristics of other blockchain based currencies, including a network robust against hacking and easily searchable transaction information allowing for transparency. The only difference between this “unmineable” network and traditional blockchain currencies is that this network is actually hierarchical with Ripple Labs running much of the show. DECENTRA-WHAT?Arguably, the most revolutionary feature of cryptocurrency is that it is exchanged on a peer-to-peer network. This means that there are no central authorities who establish rules which everyone must follow to be allowed to use the network. This is called decentralization. To drive the point across, think of cash or fiat as a centralized network. The government establishes the rules around the exchange of this fiat currency. It determines who can print more money, which bills are official and which ones are not, and it can also track the exchange of these funds for tax purposes. On a peer-to-peer network, two parties can deal directly with each other, no third party needs to be involved. Your information stays private and the actual exchange is executed over a blockchain network, so all the nodes must agree on the validity of this transaction, making it extremely secure. In this context, XRP’s lack of mining really starts to become controversial. For many crypto enthusiasts, a cryptocurrency that is controlled by a centralized authority is an abuse of blockchain technology. The whole point of blockchain is to allow a democratic consensus to be established, allowing the network to function without the need of a middleman. Which is why, in the eyes of many, Ripple Labs is not fully breaking away from a traditional banking framework as warranted by the advent cryptocurrency. THE COUNTER ARGUMENTIn the heat of a debate
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