Ripple and XRP pop up in the spotlight due to accusations of lack of decentralization.
Grayscale analyzes XRP
The institutional crypto asset manager Grayscale released an in-depth report about XRP, and they examine the coin’s history, price, protocol, transaction speed, and more details.
The report said that early developers of the XRP Ledger focused on challenging existing financial systems and creating a fast protocol that lifted XRP to become the third-largest crypto by market cap.
“XRP sought to eliminate high transaction fees and long processing times driven by institutions, and like most digital assets, addresses the double-spending problem, which is when third parties are needed to monitor counterfeited money or forged transactions,” according to the report.
The notes continued and explained that “Developers integrated features including a consensus algorithm and escrow schedule in lieu of a blockchain protocol and mining rewards, as well as incorporated a suite of commercial financial products.”
It’s been highlighted that XRP managed to gain momentum amongst both financial institutions and individual users.
Grayscale addresses the decentralized nature of XRP
Grayscale also made sure to address the decentralized nature of the XRP Ledger, and it’s also deconstructing the way in which transactions are processed on the open ledger.
So far, so good. But Grayscale continues and says that Ripple’s direct efforts to grow the XRP ecosystem and the company’s ownership of more than half of the total XRP supply make this protocol “less decentralized” compared to other crypto projects.
We recommend that you read the complete report in order to find out all the details.
This is not the first time when this issue comes up, and Ripple/XRP are two entities that have been accused due to this reason more than once.
Ripple has been indeed making considerable efforts to boost the XRP ecosystem and to promote the mass adoption of the digital asset.