Ripple (XRP) pointed out why Bitcoin is "doomed to fail"
The technical director of Ripple (XRP) explained why Bitcoin is "doomed to fail" its most important mission.
According to the technical director of Ripple, David Schwartz, over the past decade, the first cryptocurrency failed "to provide a system that allows people to freely make transactions with each other without the participation of any intermediary," writes ripplenews.
He expects that the design of the Proof-of-Work (PoW) consensus mechanism underlying the Bitcoin blockchain is such that true decentralization and the rejection of intermediaries have never been possible.
According to the technical director of Ripple, cryptocurrency should be a two-way market, when users want to have a means of saving and a means of exchange. However, Bitcoin has turned it into a "one-way market".
XRP is based on the idea of a distributed agreement algorithm that is designed to perform the same basic functions, but without the disadvantages of PoW or PoS. The consensus algorithm is simply to establish ordered transactions without any rewards in cryptocurrency, making the process consistent rather than competitive.
However, Schwartz also pointed out the main drawback of his system that the main problem with this approach is that the quality of network participants is not always so high. In the absence of rewards in cryptocurrency, the network attracts a less reliable pool of participants, who are more likely to leave without any notice.
Recall that last week it became known that Ripple is strengthening the decentralization of its network with a new validator. American blockchain company PAC Global has announced that it now has its own node for verifying transactions in the XRP. This step will increase the level of decentralization of the seventh cryptocurrency.