Ripple co-founder: Cryptocurrency needs a decentralized network to be successful

[JuniAiko]

Note for the Noobs: McCaleb, who created Ripple, had already left Ripple to create the much better non-profit organization, Stellar Network (which is technologically rebuilt from ground up base on what he had learnt when he designed and built Ripple for the current executives running that for-profit company) -- because he wanted to created a decentralized network, not a centralized one that the current Ripple executives wants.

https://www.cnbc.com/2018/03/23/ripple-co-founder-says-a-decentralized-network-is-key-.html

• Cryptocurrency and the underlying blockchain technology need a decentralized network in order to be successful in the long term, says Ripple co-founder Jed McCaleb.
• "The real vision is that you have a network, much like the internet, that anyone can participate in," says McCaleb, who also co-founded Stellar.
• Stellar's currency, unlike Ripple's, is an "internet-level protocol" that is not controlled by one centralized network, he says.

Cryptocurrency and the underlying blockchain technology need a decentralized network in order to be successful long term, said Ripple co-founder Jed McCaleb.

Use of a centralized financial payment network will result in "a system that is no better than SWIFT or PayPal," McCaleb said.

"The real vision is that you have a network, much like the internet, that anyone can participate in," McCaleb said Friday on CNBC's "Fast Money." "There's not one central entity that can decide that it's going to start charging. This is the way this thing can actually grow and reach ubiquity."

"That's the key thing to make these things successful," he said.

McCaleb co-founded Ripple, whose ripple currency is the third-largest digital coin by market cap, but split off from the Ripple team to form Stellar in 2014 because of different beliefs in how the system should be run.

"It's very hard to run nodes outside of ... Ripple Labs," McCaleb said of ripple coins. "[The Ripple team is] running the majority of the nodes, which should be concerning for people."

The developer, who also created the Mt. Gox bitcoin exchange and then sold it in 2011, said the only other successful decentralized network he's seen is the internet.

"What we're trying to build at Stellar is an internet-level protocol," said McCaleb, Stellar's chief technology officer. "That's important that that be done by a nonprofit entity. If you imagine an internet created by a for-profit company, it would just be a very different world."

Another key to Stellar's success, McCaleb said, is to not limit the investor base to a few participants.

"One of the things we're doing at Stellar is distributing the underlying coin very widely," he said.

Stellar's XLM coins, known as lumens, were among the 10 largest cryptocurrencies by market capitalization earlier this year. But the currency has declined approximately 34 percent so far this year.

The coin's transaction settlement times are 5 seconds or less, a fraction of bitcoin's time, McCaleb said.

Earlier this week, McCaleb told CNBC that cryptocurrency and the underlying blockchain technology will change the way banking takes place in the future by creating a public ledger that everyone can see — but that cannot be changed at random.

Within the next 10 years, McCaleb predicted most assets, even non-crypto assets, will become digitized.

[asriloni]

https://www.cnbc.com/2018/03/23/ripple-co-founder-says-a-decentralized-network-is-key-.html

• Cryptocurrency and the underlying blockchain technology need a decentralized network in order to be successful in the long term, says Ripple co-founder Jed McCaleb.
• "The real vision is that you have a network, much like the internet, that anyone can participate in," says McCaleb, who also co-founded Stellar.
• Stellar's currency, unlike Ripple's, is an "internet-level protocol" that is not controlled by one centralized network, he says.

That was absolutely mean if ripple was a centralized currency though. The co-founder of ripple just like said that in-directly after he was stating about ripple is unlike a ripple.

Bitcoin has a decentralized network. It has generated by so many nodes that connected from one to each other.

I thought it looks like McCaleb never tries to know about meant of decentralized network.

But he must prove it as he said steller is internet-level protocol. .

[auliahr]

we'll see if the ripple can reach as McCaleb said. it's better focus work with partnership they already have, because what they do has not given good results.

[kolesozw]

He's right, but Ripple can't be decentralized.

Ripple power is coming from the real world Big names/players support like Western Union and big banks. Still, I will never use it because of that.

[kul0n]

ripple and decentralization are incompatible concepts, the ripple team does not even position the coin as decentralized, I think the ripple will always be influenced by big players

[sweerty1]

Anyone can safely confirm his claim on Stellar Lumens? I actually like that coin but have doubts prior buying cause some people suggested it also having centralized nature. I don't know technical data about it.

[xIIImaL]

He's right, but Ripple can't be decentralized.

Ripple power is coming from the real world Big names/players support like Western Union and big banks. Still, I will never use it because of that.

Still many people does not understand the tricks of Ripple investor crew. If they want to find their coin bumped. They have the own group hold the bunch of coins in their wallet buddy. As you said, newbies and traders should know investing on this coin will ruin the crypto currency market completely.
Fact is they have holded 70 percent of coins with them itself. If they sell it out when they indeed of settle something, you will loose all your money with the cheap price equals with the fiat cash.

[JuniAiko]

Anyone can safely confirm his claim on Stellar Lumens? I actually like that coin but have doubts prior buying cause some people suggested it also having centralized nature. I don't know technical data about it.

Stellar, at this point, is increasingly decentralized. The more the small businesses and small banks in developing countries uses the network, and set up their own nodes (which there are good reasons for them to), the more decentralized Stellar will become.

Also, Stellar now has a tight partnership with the NEO-ecosystem (with Elastos and Ontology, and etc.).

[icomanagers]

I think the current ripple strategy is very good in maintaining its value, it proves the votality ripple is not so much and tend to be stable, it is not an option for traders who are more looking for opportunities in votality in the search for profit, but that is the uniqueness of the ripple that still maintain the stability of the price in the face of every growing issue

[SoulEaterRR]

I generally do not understand what this coin is still doing in the market and is gaining popularity. They do nothing for ordinary investors, and even more so the benefits of investing in this coin are close to zero and this at best.

[invest2lose]

I generally do not understand what this coin is still doing in the market and is gaining popularity. They do nothing for ordinary investors, and even more so the benefits of investing in this coin are close to zero and this at best.

you don't understand this coin and you ask why it's gaining popularity. maybe do some more research dumb fk

[Red-Apple]

i am not completely familiar with Stellar so correct me if i am wrong anywhere. but Stellar is completely premined and the coins were distributed like aridrops. that is already a bad point and makes things centralized already. then when you visited the claiming page you could see that they are not giving it away to people from many countries! and that's further centralization in my opinion because to put simply a read decentralized cryptocurrency should always be permissionless. for example if i want bitcoin i can always mine it and get some without needing permission from anyone but to get Stellar Lumens i couldn't mine because it is not mineable and i had to ask permission to receive some.

[arpon11]

That is the main reason why most of this new coins and ripple cannot reduce Bitcoin dominant. We are having a time when bitcoin will be adopted because of it decentralization. Stellar will also do well if actually it will be decentralized. We are having issues with people coming out every days with the system that they have hundred percent power over and they control everything about those coin. I the we have to focus more on a decentralized system than what we are having now.

[fia_naila]

So ripple co founder realised that cryptocurrencies will never work with centralised network but he is creating a very centralised crypto. I heard that dev can issue how many ripple they want and it is controled by company. If something can be controlled by one entity its called centralised currency like fiat

[disconnectme]

Decentralised and Centralised system have both the demerits and merits, it all depend on how the developer see their network, I know some people will argue that there is no way to see a totally decentralised system because some people will see the influence of Blockstream and Bitman has too much in the space and also Ethereum is another network one can argue is not totally decentralised