Ripple is built upon a open source free platform, distributed ledger and the decentralised native digital asset also known as Ripple ‘XRP’.
The base of trust of Ripple relies on reducing the time and transaction fees related to the existing traditional banking systems. Ripple appears to find the current payment infrastructure unacceptable, stressing that it was “built before the Internet” and has received “few updates”. “People demand a seamless and elegant experience,” as its website proclaims. Probably, as per the company, Ripple would provide best in class banking experience in mere futures.
Serious Concerns Regarding Ripple
Reaching all to new remarkable heights back in year 2017 Ripple reached at peak price of around $3.50 USD with the today’s price of around $0.48 USD, has led investors to think again of the facts company proclaims. Currently XRP is under selling pressure due its price falling significantly and even no new supportive news from the company. XRP’s average daily trading volume is around $290 Mln.
As per the CEO of Elvis Investment, ‘Anatoly Castella’ :
“Ripple can miss out big changes on the cryptocurrency market, triggered by the increased inflow if institutional money to the industry.”
“Ripple resembles a fintech platform combining the best elements of fiat money and blockchain cryptocurrency,” he said. “It should be considered ‘Digital Fiat’, not a cryptocurrency.”
As per Mr. Castella, defining the difference between Ripple and other cryptocurrencies , he further stated his concerns as:
“Ripple cannot be compared to BTC or ETH. When bitcoin was originally created, it was designed to be a store of value. When you created a transaction, you were sending a store of value to another account – for payment for goods and services. In Bitcoin miners are rewarded with Satoshi’s but in Ripple there is no mining thing involved. Instead in XRP, the transactions are backed up through a centralised blockchain. A majority of the Cryptocurrency is already pre-mined by the company which will in mere future lead Ripple to be owned by the institutional investors, forbidding the basic rules of decentralised blockchain platform.”
Ripple’s primary difference is that it’s a centralised version of an incredibly decentralised technology. Currently XRP is facing many legal, privacy and security issues which is being considered as a primary factor behind its downfall rather than its centralised blockchain protocol. As for now, we need to keep an eye on the Crypto Market.