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Expert take: Is Ripple really decentralized?

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ripple is centralized

Is Ripple really decentralized?

The digital currency world has now been heavily dominated by a huge list of virtual tokens. There was a time when the only digital token in this particular market was Bitcoins and it sure did make a powerful place for itself. Ever since the inception of the original solution of the Blockchain Technology in 2009, there have been way too many new players in the digital market like Bitcoin Cash, Litecoin, Ethereum, and what not. All these digital currencies flourish on the decentralized nature of their platform which enables a peer to peer electronic cash transfer system for its users where there is no central point of control.

Although not all of these digital coins have been able to make a space and mark for themselves in the digital market, one such name Ripple currently has the seventh highest market cap in the cryptocurrency industry. .

 

Strongly dominating

As mentioned above, the current valuation of Ripple has given it a certain power above the rest and its interesting to note that if you were to look at huge international companies like Uber and Airbnb, even they have a market valuation much less than Ripple. Both these companies fall short of almost $20 billion if compared with Ripple. This makes it a major player in the market. However, looking at the big picture, things always seem to be too good to be true and it seems like everything is going almost perfect for Ripple. But is there ever anything that is wholly perfect? Is there ever anything that is perfect with no loopholes or drawbacks to it? As one says that there are two sides to every coin, there is an ugly truth to Ripple too. Having analysed the finer details of this platform, it comes as a shock that this digital currency is in fact, not decentralized.

 

The finer details

Ripple was not exactly designed to be a coin. By the standard definitions, it does not even qualify as a normal digital currency. By tradition, digital currencies value a coin with equal priority and standing as with the security, applicability, speed and network scalability. Contrary to this stark feature of a decentralized digital currency, Ripple does not hold XRP (the digital currency for Ripple) a sort of asset for investment. It rather focuses on strengthening the blockchain to its maximum extent. Every element of XRP has been nipped and tweaked into an unrecognisable form in a bid to achieve this objective.

 

‘Trusted’ operators on the Ripple network

Yes, Ripple does have a digital wallet like all other cryptocurrencies and decentralized blockchains do however this does not give it the status of decentralized. Like other cryptocurrency and blockchain platforms, Ripple is not open source. The ‘trustless’ nature of Bitcoin and others is what enables individuals to have nodes of their own. Yes, Ripple does enable cryptographic methods to secure its users but the nodes that it protects are actually ‘trusted’ operators on the Ripple network thus making it more efficient but completely ruining it of its open nature. Thus the trust-less nature of any digital currency platform which actually allows it to be qualified as a decentralized platform is completely absent in the Ripple architecture.

 

Miners and Printers

Two remarkable features of any digital currency are the ability to mine those tokens via a process called mining and the inability of these tokens to be tethered to any deflationary asset like minted coins or printed notes. Again, Ripple fails in both these aspects. It has no mining or miners. Typically there should not be any separate entities running a network for its own personal agenda, however, the mining process and such has been deemed untenable and unaffordable by Ripple since they claim that it slows them down. This significant elimination takes it further away from the position of decentralized.

Moreover, with any other digital currency platform, if all miners wished, they could consensually shut down their computers and thus freeze the entire network. But the lack of such miners in the Ripple network makes it impossible for its users to do such a feat with it. Further, on top of not having a finite supply, Ripple tokens can also be printed. This makes procedures of payments, money exchange and other activities much more reliable when done via Ripple and helps it maintain a non volatile and stable constitution however, digital tokens are not supposed to have the potential of storage as an asset. This completely robs Ripple of its decentralized position.  

 

The Consensus Protocol

One of the most popular exchange desks, BitMEX, set up a research team to look specifically into the consensus protocol of Ripple and they came up with some rather scathing findings. They reported the presence of several complexities in the consensus protocol, the detailed inner workings of which they were not able to understand. They also could not make head and tail of the convergent properties that are vital for the consensus systems. Further in house testing revealed that Ripple could move the ledger forward since it had complete control over it which ultimately makes it centralized. Of course there is nothing wrong with a system being centralized, it is not a criminal offense, however, Ripple claims to be a decentralized network in its marketing strategies and in its terms of service which eventually means that Ripple has been making their business on false misleading information which thus makes it liable for suing.

 

It is centralised if you can sue it

When things eventually go wrong, Ripple can be sued. R3 Holdco filed a lawsuit against Ripple in the San Francisco court. The appeals court has denied Ripple’s efforts to expedite the appeal of resolving this particular lawsuit against them. Moreover, the case would soon be shifted to a New York court resulting which, Ripple would go through tremendous injury to its status. The lawsuit primarily states that Ripple failed to honor an agreement which would have given R3 Holdco the right to receive $1 billion XRP from Ripple. If we look at this from a different point of view, one would note that no one can sue Bitcoin. There is not central authority which is answerable or can be approached for redressals or can be challenged in a court of law. It is the decentralized nature of the platform which makes it qualify for such an independent form. However, this is not the case with Ripple. There is clearly a body in Ripple which has been dragged to court thus reclaiming the fact that Ripple is not decentralized.

 

Final verdict

Despite numerous marketing claims by Ripple stating and glorifying its business as decentralized, and making profits on that pretext, there is a massive amount of contrasting evidence that further cements the fact that it is in fact centralized. Such misleading claims can easily rid it of its glory and throw it into pools of despair and unreliability which would greatly affect its market value and reputation.

#Bitcoin

Kevin O’Leary from Shark Tank calls Bitcoin: Garbage and a Useless Currency

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During an interview with the CNBC, Kevin O'Leary from Shark Tank said that according to him Bitcoin is garbage and a useless currency.

During an interview with the CNBC, Kevin O’Leary from Shark Tank said that according to him Bitcoin is garbage and a useless currency.

 

Kevin O’Leary calls Bitcoin Worthless

Famous as the founder of Softkey, a startup that earns annual revenue of around $29 million and a host on the American business reality series Shark Tank, Kevin O’Leary is a celebrity amongst the business class in the United States of America.

 

During the interview published on 14th May 2019, Kevin expressed his thoughts over the king of cryptocurrencies bitcoin and called it a useless currency as the people who accept it just wants to hedge against the high volatility of the virtual currency. This comes in the midst of the current bitcoin surge as the virtual currency doubled its value in just a few days from below $4000 to more than $8000.

 

Kevin also explained why he has such negative views on bitcoin giving the instance of how once he tried using bitcoin for a real estate transaction in Switzerland. He said that it is not possible to get in and out of bitcoin while transacting in huge amounts.

 

He also gave an example stating that if one wants to buy real estate in Switzerland for $10 million. The seller wants a guarantee that the value comes back to him as currency at ten and the buyer has to hedge the risk of the cryptocurrency, hence it is not a real currency. Kevin said that the seller or the receiver would never want to take the risk of such high volatility and thus BTC is worthless.

 

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#Explained

Brief: What is EOS?

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EOS operates on a completely different set of rules than other blockchain projects because it uses a system known as a delegation test.

EOS operates on a completely different set of rules than other blockchain projects because it uses a system known as a delegation test. While competitors such as Ethereum can be regarded as a global computer, EOS is more like a global operating system. As such, EOS has been designed not to require any form of cryptocurrencies to participate or interact with the EOS blockchain. If EOS is able to divert all such problems from their original location, they could give them the advantage they need to find their place in the blockchain.

How is EOS different?

Hackers show how powerful computers can cheat Bitcoin and blockchain, giving users full control of their money.
So when someone owns Bitcoin, what they really have is the private key to unlock a specific address on the blockchain. As the largest digital currency, bitcoin encapsulates all major cryptocurrency and blockchains – such as decentralization and transparency and, of course, distribution – is the embodiment of a functional symbolic economy.

Many feared that Bitcoin could go if miners, a large part of any cryptocurrency that could work, decided to give up Bitcoin because of the increasing difficulties and losses in profitability.
Large coins such as Bitcoin are not afraid of an attack of 51 %, because every attacker with the vast majority of hashish would have been more motivated to simply mine all the blocks and get Bitcoin instead of attacking, especially given the price of their theft.

Although Ethereum wanted to address the scalability issue in Bitcoin, the number of transactions it supports per second remains very low compared to the current demand for IOT power for a smart economy.
From improving fungibility to reducing transaction costs to zero, EOS promises to help users achieve the goals they have always wanted. Whether you’re new to cryptocurrency, have been in the niche for some time, the guide opens the eyes to get EOS, start trading in markets and learn more about it. Many people who join the EOS network are interested in exchanging coins for other cryptocurrencies or even fiat coins. The proof of the stakes will make the whole mining process virtual and replace miners with validators.

First, anyone who owns cryptocurrency on a blockchain integrated into EOS software can select block manufacturers through a continuous voting system. EOS operates on a proprietary model in which users own and are entitled to capitalize on their share, rather than having to pay for each transaction.

 

How to buy EOS?

Binance which is the largest cryptocurrency exchange is limited to cryptocurrency, so we cannot buy EOS directly with US dollars or euros. It is advisable to own other cryptocurrencies such as Bitcoin or Ethereum before you use the exchange, but it is possible to convert your dollars or euros into EOS.

 

EOS is a very ambitious project, which can completely change the way cryptocurrency is viewed.

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#Explained

Research: Trading Bots vs Humans

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It is not advisable for new traders to rely on trading bots, not only because they lose the opportunity to actively learn about markets and trading styles.

Trading bots can be unreliable, require almost continuous monitoring and cost a lot. If you are new to Bitcoin ‘bots, you can choose a bot based on your trading strategy. Cryptocurrency trading bots can be particularly useful for day-to-day transactions, as they can exchange quickly 24 hours day. Whether you create your algorithms for Bitcoin trading robots or choose settings, you need to know a lot about the cryptocurrency market and your finances.

Trading Bots

Built with innovative algorithms for machine learning, social media indicators and user – friendly interfaces, the new commercial bot class will have a significant impact on market growth. Especially once institutional investments have begun to enter the markets and the risks of manipulation have decreased, commercial robots should start to develop with advanced AI and machine learning components.

On Wall Street, trading robots and high – frequency algorithms are omnipresent, but cryptocurrency networks provide a unique environment for them to reduce risk, experiment with new methods and even profit from market manipulation.

Bots are automated systems that exchange information, answer questions and even carry out activities – such as trading bitcoin for money and vice versa.

Arbitration – the act of buying and selling goods in one market and selling them higher in another – is now possible thanks to chatbots and automated systems.

 

Bots vs Humans

Developers look at many component syntheses when developing an automated trading system or robot EA, including Market Nature, mathematical modeling, timeframe, input, and output Signals, Stop-Loss triggers and Profit targets, etc. For daily traders or other short – term traders, automated trading robots are handy tools for dealing with high-frequency transactions using tick data. Automated trading is not yet perfect, and EA robots can’t think more than humans.

Commercial robots often use algorithms to detect trends and determine when transactions need to be performed.
For merchants, the cryptocurrency robot offers the opportunity to control the market 24 hours a day and protect their assets when they sleep or are away from their desks. When done well, bots can be a tool to help cryptocurrencies stay ahead of the curve when it comes to market movements.

There have been cases where apparently reliable commercial bots have proven to be fraud, with investors not being able to withdraw money from their accounts. Artificial intelligence and automatic learning help robots to develop and evolve continuously, but there is still a long way to overcome human instincts.

Bots aren’t is the only choice to automate execution and keep transactions without emotion – even automatic trading platforms do the work. Capitalize gives you complete control over your transactions and the best in automated trading technology.

Unlike people, commercial robots will never be misguided by emotions and not influenced by the psychology of the trader. Automated trading is a great way to build market confidence to prevent emotions and psychological problems from affecting business decisions. Automated trading systems can carry trades day and night, and do not miss out on trading opportunities. It is able to open and close transactions depending on your trading strategy while you are engaged in other human activities. Although automated trading has all of these advantages, I can still say that we cannot underestimate the benefits of manual trade, because they are based on the innate human intellect that a robot does not have.

Many people are attracted to markets by promises of easy money through daily trading robots or expert consultants ( EAs ). Automated trading software is available in several different names, such as Expert consultants ( EAs ), robot trading, program trading, automated trading or black – box trading. For those who buy commercial software, they depend entirely on the skills and programming of the person who wrote the program.

It is not advisable for new traders to rely on trading bots, not only because they lose the opportunity to actively learn about markets and trading styles.

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