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XRP Ledger moves towards decentralization, third-party validators emerge!

Anirudh VK

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XRP Ledger moves towards decentralization, third-party validators emerge!
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One of the biggest arguments against the XRP Ledger and the accompanying token is that it is centralized. This argument is beginning to become weaker as the number of third-party validators on the Ripple network is increasing.

Validators are members on the XRP Ledger that determine whether transactions meet protocol requirements, thus determining their validity. They also agree on the ordering of a group of transactions, so as to avoid double spending of the token.

The Ledger also has a feature known as Unique Node Lists, which are a list of validators that “a given participant believes will not conspire to defraud them”. The participants can choose different UNLs depending on their belief in the quality of the validators.

Historically, Ripple Labs Inc., the company currently managing the XRP Ledger, has hosted validators to ensure the smooth functioning of the system. This has changed recently.

Currently, according to data from the XRP Charts website, out of 18 trusted validators, 4 of them are the third party. This is a big step forward for decentralization as Ripple’s UNL is comprised of only 77% of their own validators. This means Ripple, the company, cannot unilaterally pass amendments to the Ledger without the help of a third-party validator.

The third-party validators in question are Bahnhof AB, a Swedish Internet Service Provider, WorldLink US, a technology firm based in Texas, Telindus Telecom, an Information and Communication Technolgy firm based out of Luxembourg, and Flagship Solutions Group, which provides IBM solutions, managed services and cloud solutions worldwide.

According to Ripple themselves, the Ledger requires 16 third-party validators to match the decentralization of coins such as Bitcoin and Ethereum, with 17 required to be more decentralized than them.



In one of their blog posts on the subject, Ripple said:

“As we continue these initiatives to further decentralize the system, XRP Ledger will inherently become even more resilient…In other words, XRP Ledger will not just meet, but exceed the decentralization level of other public blockchains.

Twitterati Michael B stated:

“correct me if I’m wrong… this further separates Ripple from #XRP in several ways and does this also widen the gap where the SEC is concerned… something more to hang their hat on so to speak”





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Anirudh VK is a full-time journalist at AMBCrypto. He has a passion for writing and interest towards the future of blockchain technology and cryptocurrencies. He does not own any cryptocurrencies currently.

XRP

Has XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?

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Hash XRP decoupled from Bitcoin? Is it due to immense pressure from manipulators?
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Opinion: Bitcoin, the first cryptocurrency, has had over ten years to grow. However, other altcoins did not have the liberty, due to which Bitcoin exerts its dominance over almost all altcoins in the ecosystem, be it Ethereum, XRP, or Cardano. The price of altcoins generally tends to rise if Bitcoin’s price surges rapidly. The same can be said about the downtrend as well, which is why altcoins are said to be coupled with Bitcoin.

However, the recent buzz on crypto-twitter is that XRP is on the verge of decoupling from Bitcoin. A Twitter user @XRPMOONSHINE tweeted:

“DO ME A FAVOR OPEN UP A BTC/USD CHART AND AN XRP/USD CHART. THEY HAVE DECOUPLED AND ARE MOVING DIFFERENTLY.”

In a very general sense, the comparison of the price change of XRP and BTC gives a crude understanding of whether the prices have actually decoupled or not. Hence, the daily chart attached below shows the price of BTC and XRP against the US Dollar and extends from August 2018 to April 2019. The price of XRP seems to be following a lag from the price of BTC and do not necessarily mean that it has decoupled.

However, there are timeframes where the price of XRP has moved completely unrelated to that of Bitcoin. For example, the meteoric rise of XRP from September 18 to 22 was far higher than the price pump of BTC over the similar timeframe; but the drop of XRP from November 18 to December 16 was exactly the same as that of BTC’s.

Furthermore, XRPMOONSHINE suggested that XRP price was being manipulated. He tweeted:

“It is being manipulated to keep it from rising. For example look at XRP/BTC pair. Keeping it under the down sloping resistance from .80 in September. Thats what I mean by Suppressed, Although im expecting a fairly large move to the upside before 4/24/19.”

The “idea” of the price of XRP being manipulated is not unpopular within the XRP ecosystem as Peter Brandt, a famed trader, suggested the same in one of his tweets.

Brandt tweeted:



Conclusion

XRP may have started to decouple from Bitcoin, but it surely hasn’t decoupled completely. The notion that XRP is being manipulated to keep its price below certain levels can also not be confirmed without proof.





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