An exchange that has recently added Ripple to its trading platform is happy to proclaim that in its view, XRP is a “Centralized Virtual Currency“, not strictly a cryptocurrency.
The Finnish-based Coinmotion exchange’s definition for users could find that many enthusiastic customers may not be happy to read it:
“What one needs to know about XRP is that it is not cryptocurrency in the strict meaning of the word… What differentiates XRP from cryptocurrencies is that it is not based on blockchain, it is not mined and it is heavily centralized. Ripple network is a suite of different applications by Ripple Labs. XRP, is the currency of Ripple network, which the apps use.”
Ripple CEO Brad Garlinghouse claims that XRP is in fact “very clearly decentralized”. The company has been moving from strength to strength within the industry, particularly with its link to traditional banking. Ripple Labs announced the addition of 13 more financial institutions to its RippleNet in January, which now takes the total to over 200.
Coinmotion’s blog claims that Ripple’s network doesn’t use blockchain but relies on a Ripple Labs patented system called HashTree adding:
“In HashTree all the transactions and balances are combined to a single number, which servers compare to each other to reach consensus. This kind of system is faster than blockchain, but far more centralized.”
The Finnish exchange ends its blog with a rather curious note to users, given that it chose to list XRP, stating, “Nonetheless since You, our dear customer, have asked for it, we have offered you the possibility to buy and sell XRP on Coinmotion.”
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