As the Christmas holidays began, two of the most prominent members of the XRP community, Dr.T and Tiffany Hayden, recently held a discussion on the advantages and cons of a multi-sig wallet on an exchange. The question was asked by a cryptocurrency and blockchain space enthusiast.
Here, Dr.T responded by stating that the multi-sig feature enables high security of funds against hackers. However, to legitimize the use of such wallets, it requires a third party to participate. In his words:
“Multi-sig makes signing transactions harder as you have others who must agree to move funds. It means, stealing/hacking is MUCH harder too. Cons: legit use requires another party too.”
Here, Tiffany Hayden raised a few valuable questions to keep in check the implementation of multi-sig. Through her questions, she implied that there must be a paper describing who holds the keys and clarity on what the multi-sig contract is programmed to do. She also wrote:
“Under what conditions the different parties will sign a txn, and how I can remove my money anytime I want w/o permission?”
She continued to state that absense of information is scary. Moreover, it is even scarier to notice people’s ignorance on the matter and their unwillingness to address such issues.
Dr.T put up another tweet on the matter and opined that there can be a use case for a multi-sig wallet for a custodian. Here, he commented:
“The nefarious use-case would be: A custodian keeping fractional reserves of the money they borrowed from customers and making sure they don’t face a “bank-run” type of scenario (all customers withdrawing cash from ATM at the same time). They can then “safely” lend speculate XRP.”
On the market front, XRP is currently traveling in the red zone, slumped by just 0.33%. At the time of writing, the token was trading at a price of $0.37 with a market cap of $15.3 billion.
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XRP interest on the rise as analysis shows formation of a ‘quadruple bottom’
The cryptocurrency market has been subject to a significant bull run that has not only catapulted the prices of digital assets, but also their corresponding market caps. XRP, the third largest cryptocurrency, had more of a rollercoaster ride rather than the sudden surge enjoyed by Bitcoin, with the coin trading at a 6-month high, at press time.
A recent analysis conducted by DonAlt, the popular cryptocurrency enthusiast, pointed out the dips in the one-day chart of XRP. His tweet read,
A lot of interest in XRP. Kind of looks like a quadruple bottom / head and shoulders.
Not the biggest fan of longing those. If there is one lesson 2018 taught everyone is support is only support for so long.
I’ll be watching this one from the sidelines.”
There was also speculation that it was a good time to buy into XRP when there is a violent reaction at the lows, while going long previously was a risky decision. Previous readings of the XRP graph have shown that any squeeze in the XRP graph will result in a full retracement. Since May 2019, the cryptocurrency grew from $0.28 to the current trading price, which was more than a 100 percent increase.
At the time of writing, XRP was trading at $0.467, with a total market cap of $19.89 billion. The cryptocurrency was growing at a rate of 1.13 percent, with a 24-hour market volume of $42.57 billion.
XRP was in the news recently after its related application, XRP TipBot, came back online after a small downtime. Wietse Wind, creator of XRP TipBot, had tweeted,
“Oops! Sorry! Infrastructure blip. Really easy fix but I enjoyed an offline afternoon with my girls 😇 So I only found out after some time, when I checked my phone. Monitoring, messages, calls 😇 Social media tips went through during the downtime. Sorry!”
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