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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.

#Blockonix

What is BDT token? Why Is it a good investment for 2018?

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BDT token is the native token for decentralized crypto exchange, Blockonix. The holders will undoubtedly experience an increase in the value of BDT tokens.

Comprehending some of the key attributes of the BDT token.

Introduction

Following the footsteps of Satoshi Nakamoto, a decentralized exchange is the complete form of freedom in the Crypto domain that can be provided to the customers. However, there are downsides to a decentralized exchange, as they are not capable of handling the number of volumes a centralized exchange currently handles. In a decentralized environment, there is absolutely no place for block rewards, which is responsible for incentivization to the economy in the system. But the decentralized exchanges are absolutely global, unlike the Centralised ones which are restricted to some countries only. Blockonix is one of such decentralized exchanges which is proving to be the future of decentralized crypto trading and BDT Token is the core token of the Exchange. Although the decentralized exchanges do not support the Fiat currencies, it is yet the preferred place for all the crypto fanatics.

Blockonix

Blockonix launched on 20th July 2018 is one of the most reliable and trustworthy decentralized Crypto exchange. It launched its operations from Malta despite originally being from India due to the regulatory bottlenecks in the country. The Crypto exchange earlier was called by the name ‘BitIndia’ which was a domestic Crypto exchange, to be launched in India itself. But due to strict Crypto regulations in the country, the organization was forced to go global by rebranding itself to Blockonix.

As the complete operations of the Crypto exchange are solely vested with a number of smart contracts, there is no single authority who is in control of the funds on the exchange, as they staunchly believe in the decentralized principal. The most reliable, Ethereum environment, was incorporated to build the whole smart contract based Crypto exchange, where the users are fully in control of their funds.

 

BDT Token

BDT token is the native token for decentralized crypto exchange, Blockonix. The Crypto exchange as earlier was expected to launch as  BitIndia but was unable to do so, hence is providing a provision to all the BitIndia users to swap their tokens with BDT tokens. With approximately 2000 holders, the total supply of token is just  10,092,083.35. BDT tokens are to be listed on some of the major cryptocurrency exchanges along with being listed on it’s on home Crypto exchange.

The holders will undoubtedly experience an increase in the value of BDT tokens as all the trading fees which are to be obtained, while trading, would be permanently destroyed by sending them to a burn address. In this way as the scarcity of the token increases, the value also increases. The team members of the project are highly committed to providing a world-class facility to their traders.

The trading fees are 0.1 % and a flat 70% discount would be made avail if the users incorporate BDT tokens for the paying the fee. Generally, Ether along with the Ethereum gas is incorporated for the transaction fees. The complex decentralized environment is economically sound, as there is negligible expenditure on security measures, as the decentralization is incorporated into its core framework itself. Thereby cutting down the security costs.

Good investment?

The Bloconix decentralized Crypto exchange has listed more than 100 Ethereum tokens for trading. With sufficient security and robustness provided by the team members, the value of the tokens is bound to increase as the crypto exchange expands. Hence it is one of the best tokens that one must be opting for incorporating into their investment portfolio for 2018. The Crypto exchange is predicted to set benchmarks in the history of decentralized Crypto exchanges, in turn, pushing the value of the BDT tokens towards the sky.  

 

Conclusion

The fact can be denied that the Centralized exchanges have played a major role in providing liquidity along with shaping the cryptocurrency market worldwide. But there is a lot of downside to it, a sum of the Crypto exchanges offers their service to selected regions. On contrary, Blockonix, is open for its usage, except for the citizens of the countries of United States of America, Singapore, and China.

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#Tron Price Analysis

What is TRON? Is TRON a good investment for 2018?

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Tron is one such cryptocurrency which aims to create a decentralized entertainment content sharing system and seems to have an amazing future.

Understanding the fundamental principles of the TRON project.

Introduction

The Blockchain’s Distributed Ledger Technology is one of the most secure forms of storing the information but as it is shared among each and every node of the network, privacy is somewhere being compromised, although transparency is maintained. However, apart from the currency point of view, there are a number of other applications in the real world where problems are yet to find solutions.

Any venture is undertaken, which was disliked by the government, was forced to shut down its operations through the centralized governing authority of the Government, but the decentralized concept of the cryptocurrencies has open the new oceans of opportunities, which is in some of the other ways, free from government censorship. Decentralization is a powerful tool which is absolutely independent of government control. Many cryptocurrency coins are used among the network for the transfer of value within it, along with the main intention behind the project being uncontrollable by the government.

TRON

Tron is one such cryptocurrency which aims to create a decentralized entertainment content sharing system along with being the future of decentralized social media. The users of the network need to constantly share their content with the other members of the network for which, based on a number of factors, the cryptocurrency will be rewarded in the form of an appreciation.

It’s truly a perfect cryptocurrency destination for all the social media, gambling and entertainment Geeks. Let’s try to gain some insights about the project.

 

  • Currently, as the whole internet revolves around some of the big companies like Google, Amazon, Facebook, Instagram, etc they have complete authority over us, about our identity. Their applications are also designed in an addictive fashion so as to extract the maximum activity through them from us. It is estimated that Google, one of the most powerful search engine, knows about your preferences more than anyone else. Hence sharing your personal ideas and beliefs which such centralized organizations don’t seem to be reliable. Thereby a decentralized system is required, when no one can keep an eye on our personality.

 

  • In the centralized form of an entertainment system, it is worth noting down that they have the complete authority of taking down any particular information or manipulate them according to their requirements. In a decentralized system, there is no concept of censorship and higher transparency is also obtained.

 

  • The users would be paid by the network directly for their contribution for the content to the network without the intervention of any third party in the form of the native cryptocurrency.

 

  • The cryptocurrency organization strictly complies by all the rules and regulations of the governing authority.

 

  • Justin Sun is the founder of the TRON project. He has been able to achieve this fiat, at an early age of 27. He is also well known to have been founded the Peiwo app, which can be considered similar to Snapchat in the audio version, where users record that 10 seconds audio clipping and others listen to it. This app even became the first one to collaborate with TRON.

 

  • Jack Ma, the founder of Alibaba Group, is estimated to be very near and dear to Justin Sun. He was exclusively selected by Jack ma to study at the Jack ma Hupun University. Some of the key developers from the Alibaba group are migrating to the TRON Foundation.

 

  • In other words, Jack Ma can be considered as a mentor for Justin Sun. While Jack ma, himself is backed by prominent figures like Feng Li and Tim berners-lee.

 

  • A top class security is provided by the TRON network as it is supervised by Jorge Guo, a well-known entity who has been endorsed to maintain Security at massive organizations like Google, Huawei, Qualcomm, etc. But in order to be on a safer side one is suggested to hold their cryptocurrency coins in their personal wallet itself.

 

Is it good an investment option?

With collaborations with key figures like Jack ma and most skilled developers from all around the world on the project, TRON seems to have an amazing future, as it is still in its natal stage. But speculations are haunting the project as Justin Sun is considered to be too young to handle a project at such scale. The fundamental concept seems to be promising enough for the project’s development in future and hence can be opted as a viable investment option.  

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#Exchange

What is NEO? Is it a good investment? How is it different from Ethereum?

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NEO can be considered as the Chinese version of Ethereum, It has a lot of similarities with Ethereum but not exactly the same as Ethereum. NEO vs Ethereum.

Attributes which render NEO, to become a potential competitor to Ethereum.

Introduction

Ethereum is one of the most famous cryptocurrency after Bitcoin. Ranking second, according to Coinmarketcap, the crypto protocol provides a standard template in order to facilitate anyone to create decentralized applications in their own customized manner. In those decentralized applications, the virtual commodities which are traded are confirmed on the Ethereum network. Scalability has always been an issue with respect to the Ethereum network due to an adamant usage of these decentralized applications. Crypto kitties were the most trending decentralized app, which had even once caused a clog in the Ethereum network. Let us see both while comparing Neo vs Ethereum.

 

NEO

NEO can be considered as the Chinese version of Ethereum. It is evident, in this world, that the people of China can be considered a bit arrogant in nature or patriotic towards their country, as they restrict themselves from using the Western products and services. They are known to have their own version of Facebook, WhatsApp, Amazon, also one of the most famous cryptocurrency platform, Ethereum which they use extensively. The cryptocurrency network is nothing but a distributed network for the improvement of the smart economy.

Further insights into NEO

NEO protocol basically comprises two kinds of coins, one is the native coin, NEO and the other one being, NeoGas. The concept here is very similar to that of Ethereum. NEO is used for all the transactions which take place under the NEO Network, and the NeoGas is used to used as a fuel for the transactions. All the native tokens were pre-mined and hence no mining process is available but this is not the case for NeoGas, as it is used to reward the nodes of the network to incentivize them, to help in maintenance and verification of the blocks.

 

The practical use case seems to be very simple. If two users need to undergo an agreement and have a transaction, then they can opt for the NEO smart contract where their assets are first converted into the digital cryptocurrency Neo. Followed by which, according to the rules and regulations, predefined on a smart contract the transaction is undertaken.

NEO vs Ethereum

The cryptocurrency has a lot of similarities with Ethereum. Although it is not exactly the same as Ethereum. Let us see Neo vs Ethereum Analysis.

In the Ethereum Network, an exclusive programming language is incorporated in order to develop the smart contracts, but in case of NEO, smart contracts can effectively be developed by using some of the already existing and popular programming languages like as C# and Java. Also in Neo vs Ethereum, Further developments are being done with respect to the NEO Blockchain, where the creation of smart contracts is to be made available in Python as well as Go too. This feature can be acclaimed as a reason for an advantage of NEO over Ethereum.

Another key difference in Neo vs Ethereum is that can be marked between the two prominent Blockchain’s is that NEO envisages Digital Identity concept whereas Ethereum doesn’t. This feature is highly appreciated in the international market as one needs to trust the other person and somewhat transparency is obtained through this paradigm.

Is NEO worth investing in?

As the token’s total supply is fixed at 100 million, the value of the coin, over time, is bound to experience a bullish trend. The process of the release of the cryptocurrency coin is vested with a Smart Contract, where only 15 million coins are released every year. Half of the total supply was already released earlier itself. This consistent release of coins is what offers stability to it. The platform even provides high scalability and controls the latency with 10,000 transactions per second. Being developed in China the cryptocurrency coin is somehow restricted, for its unconditional adoption by the Asian countries, as China is not a Crypto friendly nation. This could mark a potential risk to the coin.

 

Conclusion

Although NEO is regarded as the ‘Ethereum of the East,’ restrictions on the cryptocurrencies in the Asian countries can resist the growth of the network. Otherwise, it possesses the potential to leave Ethereum behind. As the cryptocurrency market is highly volatile an extensive background homework is mandatory, before an understanding any investment in the crypto field. One must bet only the amount of funds, that he/she is OK to lose.

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