Ripple (XRP) just made a possibly game-changing move by making a huge step towards decentralization. Ripple the company now officially owns less than half (10) of the total 21 nodes, while the rest of them (11) are owned by third parties.
XRP makes a move towards decentralization
Many are, undoubtedly, already aware that Ripple has had a lot of issues when it comes to decentralization recently. And, while some of them have been resolved, a lot of them still remain. Simply put, decentralization means that the power is taken away from a single governing body and given to the members of the community.
This is the sole purpose for the creation of cryptocurrencies since they were originally made as a sign of protest against banks that held all the power by managing all the money. However, Ripple (XRP) did not seem to closely follow this crypto rule at all, and its parent company, Ripple Labs, was accused of being in total control of the currency many times. More than that, they faced multiple lawsuits from unsatisfied XRP holders who claimed that the company cheated them out of their money through Ripple price manipulation.
In fact, the situation became so bad that Ripple Labs received more complaints and accusations than pretty much any other firm that launched its own crypto. Of course, the company continued to deny these claims on every occasion. They stated that they are a separate entity which deals with software solutions and that XRP is on its own.
At the same time, however, the company seemed to own the majority of XRP, with an additional significant amount of it being held in escrow accounts.
However, it would seem that the Ripple situation is taking a positive step with the recent report that the XRP decentralization strategy is underway. The strategy was being developed for a long time, and it seems that it finally started to bear fruit. According to the report, Ripple Labs now actually controls less than half of the unique node list, with an entire 52% of them being the property of third parties, and only 48% remaining in the possession of the company.
This was the company’s plan all along, and they are slowly but surely replacing their own influence on the currency with that of the community.
Ripple and XRP are (not) the same
According to Cory Johnson, the company’s Chief Market Strategist, XRP is only one of the company’s many investments. However, the company only ever used the coin as their liquidity tool. They used it for facilitating transfers through one of their most popular products, xRapid. It was never the company’s intention to manipulate XRP’s price or try to trick investors out of their money.
A lot of experts believe that the majority of this is true, apart from the fact that Ripple and XRP are separate entities. However, all the controversy and the recent lawsuits have left a lot of investors doubtful of XRP, not willing to take a risk of pledging their money to a potentially centralized currency. Not to mention the accusations that XRP was a security. And while these accusations are seemingly false, the investors’ trust in this coin has yet to fully return.
The interesting thing is that, even with all the criticism, accusations, lawsuits, and controversy, XRP still witnessed a significant increase in its adoption levels. Only recently, it was accepted by Netcoins, which allowed investors to buy it from over 21,000 retail locations from all around the world.
Obviously, Ripple remains a very desired coin, and many are hoping that the new development will continue to bring XRP to full decentralization in days to come.