Despite being associated with cryptocurrencies such as bitcoin and ethereum, ripple’s status as a decentralized currency is a matter of dispute. Critics have taken aim at XRP for years, claiming that Ripple exerts an unprecedented degree of control over transactions, something the company has always denied. A new report from Bitmex Research, whose cryptocurrency analysis carries great weight, suggests that ripple may be even more centralized than previously thought.
New Research Suggests Ripple Is Even More Centralized Than Previously Thought
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2 hours ago | Kai Sedgwick | 10679 | 17
New Research Suggests Ripple Is Even More Centralized Than Previously Thought
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Despite being associated with cryptocurrencies such as bitcoin and ethereum, ripple’s status as a decentralized currency is a matter of dispute. Critics have taken aim at XRP for years, claiming that Ripple exerts an unprecedented degree of control over transactions, something the company has always denied. A new report from Bitmex Research, whose cryptocurrency analysis carries great weight, suggests that ripple may be even more centralized than previously thought.
Also read: The Rise and Fall of Ripple is a Case Study in Mass Hysteria
Bitmex Goes Forensic On Ripple
The Bitmex blog, operated by the exchange famed for its 100x leverage, isn’t like other blogs. Instead of being ephemeral and newsy, it’s characterized by deep and thoughtful research that is unlike anything else within the crypto space. When a new blog post is published, the community takes notice. On Monday, the latest Bitmex Research post, “The Ripple story”, arrived. Written more like an academic paper than a blog, it delves into the origins and backstory to Ripple in forensic detail.
While the entire report will be of interest to anyone trying to gauge what to make of Ripple, it is the section regarding centralization that has provoked the most interest. In January, news.Bitcoin.com reported on Ripple Gateways’ ability to freeze users’ funds, something the company’s chief cryptographer David Schwartz bitterly protested. The Bitmex blog post explores this allegation at length, explaining:
This information was already in the public domain thanks to to court documents, as was the news that the first 32,000 block headers from the Ripple ledger are missing, making it impossible to fully audit the company all the way back to when 100 billion XRP were created. 2013 is a long time ago in cryptocurrency history, and a lot has happened since then, both to Ripple and to the industry in general. Bitmex does a meticulous job of tracking the ups, downs and labyrinthine goings on at Ripple HQ – or Ripple Labs as the company was known at one stage in its history.
