Even though Ripple recorded remarkable price rise last month, experts in the crypto field allay fears that ripple might not be the next bitcoin as most investors think.
Some critics like Charlie Lee, Litecoin’s creator say that ripple isn’t a crypto-currency and it’s misleading that is why reputable sites like CoinMarketCap don’t list it. Therefore the high prices it experiences just misleads investors.
According to some industry experts, the way XRP is mined is what disqualifies it from being a cryptocurrency. It can’t match the likes of bitcoin as they have miners that can create BTC and later validate the transactions through the code to secure the currency.
At the point of the launch ripple network in 2012, all the 100 billion coins were placed in the setup so that miners will not be necessary. While 20 bln was left to the creators, Ripple labs took the rest.
While with bitcoin any computer can join the network, the ripple will require the participant computer to identify itself to have the permission to validate transactions.
It implies that unlike bitcoin which it decentralized, Ripple is centralized by the company managing its operations.
While bitcoin can only execute 7 transactions per second, Ripple settles almost 1000 transactions in each second making it a suitable currency that financial institutions can use to deal with cross-border payments in a cheap and faster rate.