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Is Ripple XRP truly decentralized?

Is Ripple XRP truly decentralized

Ripple XRP is the cryptocurrency that aims of friction reduction between the foreign exchange transactions, such as oil in a car. It assists the banks in transferring money by readily increasing the liquidity or availability of the infrequently used currency pairs.

Ripple claims that it can aid in reducing the cash needed by banks and money transmitters, the cash is freed up, enabling the firm to either invest it or utilize it for some other purpose, thereby, saving them money.

Is Ripple XRP truly decentralized?

However, substantial controversy surrounds Ripple XRP. Ripple Foundation, the company mainly behind this cryptocurrency is adamant that XRP is decentralized. David Schwartz, the chief technical officer (CTO) at Ripple stated that XRP Ledger by design is also— if not more so —   fundamentally decentralized than the Bitcoin and Ethereum.

Ripple has even gone to the extent to distance itself from the creation of XRP, just to highlight the crypto asset’s decentralized nature. Brad Garglinghouse, chief executive officer (CEO) of Ripple state that XRP Ledger has existed before the Ripple Foundation.

Schwartz furthers that although Ripple owns a lot of XRP, it is just like saying that Exxon owns plenty of oil. Just like Exxon, Ripple is the firm that delivers XRP to financial engines that need lubrication. However, there is significant evidence suggesting that Ripple, in fact, controls XRP, entirely.

In 2013, XRP and its ledger were launched by the present Executive Chairman Chris Larsen, Jed McCaleb and Arthur Britto, both of them parted ways from this project later. Initially, in 2012 XRP was known as the ‘Newcoin’. After a month the company renamed ‘OpenCoin’.

At last in 2013, the company was renamed ‘Ripple Labs’. Then in 2014, it merged as the subsidiary under Ripple Labs, a Delaware corporation; the same that is operating nowadays.

After the network was launched, after around six months a trademark was filed. Although it was registered by the OpenCoin, the current owner of the trademark is Ripple.

The Company has itself acknowledged that it has created the XRP. Preston Byrne is the attorney who has specialized in blockchain technology stated that the XRP has been created, Ripple owns most of XRP and XRP was issued following the formation of the company, hence the term Ripple XRP is often considered one-word. 

So all that control doesn’t really constitute true decentralization or does it? What do you think? Comment below.

Aroosa Nadeem

Aroosa Nadeem

A media graduate and passionate media person Aroosa has a knack for digital media journalism and outreach. She has contributed content to different digital media publishers in a variety of areas including technology, health and finance.

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