Is Ripple a security? There has been some great discussion and confusion in the crypto community surrounding this subject.
A digital asset is categorized as a cryptocurrency. However, from its definition, it leaves out most of XRP’s design features. Some believe that XRP has strayed from its intended purpose and is going after the market demands as opposed to how a cryptographically designed asset should work.
Bitcoin’s, the first successful cryptocurrency, main goal at the start was to offer an alternative to fiat, which it did not achieve 100% giving birth to XRP and other altcoins whose idea was to fill the gap left by Bitcoin.
In the crypto market, XRP is defined as a non-mineable coin. XRP is centralized while in fact, it needs to be decentralized and achieve the true cryptocurrency status in the market. Decentralization, allows the market to take control of the future, there is transparency and information flow is not restricted. It also becomes hard to separate it from the traditional online money. However, XRP is a digital coin that has a centralized currency, meaning that there is a governing system around it that controls the direction transactions take and can “fix” market prices.
Whether it’s centralized or decentralized, XRP value in the market speaks for itself, it is doing better than most major coins. XRP is aiming to reach high levels with the release of several revolutionary ideas on its platform. The continued support from the Ripple community of HODLers and traders and actual use of XRP for transactions will make it skyrocket.
The first being Codius smart contract platform. Its primary goal is to introduce the interoperability of the different blockchains as well as to come up with new ways of monetizing the web, rather than the traditional way of doing things.
Additionally, the launch of SBI Virtual Currencies Exchange which will focus entirely on Ripple, since the parent company, SBI Holdings, has been a partner of Ripple for over two years now.
Perhaps this level of confidence justifies their recent call to South Korea, for the need to reduce some of the stricter cryptocurrency laws by Ripple’s senior VP, Eric van Miltenburg. Miltenburg view Ripple and other digital currency technologies as a landscape that has the potential to propel the global economy.
We’ve seen that in other countries and in other technologies where you found a bounce. Frankly, if you think back to the early age of the internet, some people only looked at the negative aspects of the internet saying we should shut it down for a while until we figure out what’s going on, and what’s good and what’s bad. Eric van Miltenbug
Ripple and Ethereum are both altcoins. Compared to Bitcoin, Ethereum is locked in a tight race with Ripple with good reason. Ripple has a better chance with traditional financial authorities especially with the over-regulation of cryptocurrencies that is currently going on. Ripple stands a better chance of being the favorite cryptocurrencies for leading financial institutions.
However, Ethereum has smart contracts that give it a technical advantage over Ripple. This might prove difficult for Ripple to move ahead of Ethereum. Perhaps, Ripple needs to take up the task of building smart contracts on their blockchain that can result in Ethereum becoming third largest cryptocurrency while XRP would be a runner-up to Bitcoin.