TokenPay (TPAY) has again decided to mock Ripple (XRP) and Neo (NEO), saying the two cryptocurrencies are centralized. TokenPay, in a retweet, stated that NEO is centralized just like XRP. The retweet opined that NEO foundation controls all NEO nodes, pointing out that it is “Chinese Ethereum”.
“$NEO centralized just like $XRP. The fake “Foundation” (fancy word for a company masked as a charity) controls all the nodes. “Chinese Ethereum”.”
$NEO centralized just like $XRP. The fake “Foundation” (fancy word for a company masked as a charity) controls all the nodes. “Chinese Ethereum” https://twitter.com/ercwl/status/970298089977368577 …
Decentralization has been a significant concern for the cryptocurrency community; many analysts are of the opinion that all blockchain-affiliated technology must entirely be out of the management of some selected few i.e. government, and not be involved in anything that has to do with centralization.
Above aphorism has resulted in a part of the cryptocurrency community alleging that Ripple and NEO are not real cryptocurrencies.
The basis for their argument has been that XRP, like NEO, was not designed to be a coin or a normal cryptocurrency by the standard definition.
To them, Ripple’s XRP, which focuses on making blockchain as healthy as possible is majorly for the good of the institutions that Ripple collaborates with i.e. American Express or Santander Bank, hence, Ripple created XRP and tweaked each traditional component of cryptocurrency into an almost unrecognizable state. This is the few of Joe Liebkind.
In the same line, since XRP cannot be mined, transactions are centralized. Another view that makes some portions of blockchain enthusiasts condemn XRP is that its blockchain is not open like that of other cryptocurrencies.
However, to keep critics at bay, Ripple, which oversees XRP continues to make the blockchain as decentralized as possible. At the moment the total number of validators on XRP ledger equalled 68. The decision by Ripple to increase the number of validator on the ledger may be because critics are always pointing out that XRP is centralized.
As of today, Ripple makes up 21% of the 68 validators on XRP ledger. This is a signal that the ledger is moving towards complete decentralization.
Going by the Security and Exchange Commission’s definition of Security, it becomes easy to say that XRP is not worth been regarded as one since the cryptocurrency keeps moving closer to becoming a fully decentralized digital currency each day.