Nano inventor: XRP is too slow and centralized for banks
Home News Nano inventor: XRP is too slow and centralized for banks
Marcus Misiak –
Ripple is currently considered the first choice for banks and financial institutions, the Blockchain technology in the established System to integrate and cross-border banking and money transfers. Not everyone within the Ecosystem, however, believe in the long-term success of Ripple. Colin LeMahieu, the inventor of the Nano, is one of them.
LeMahieu believes that the Nano-Blockchain achieve the goals of Ripple safer, faster and more cost-effective. Tests in October found that a Nano-transaction was completed on Binance in about three seconds, seven seconds faster than XRP. Stellar Lumens (XLM) could be completed in six seconds.
No wonder LeMahieu believes that Nano is the best solution. Banks want to speed up the process, the confirmation can take several days. He points out that Nano enables nearly instant processing and at the same time reducing costs.
Nano is decentralized
Since the establishment, under the name of Raiblocks (XRB), the Nano-Token completely, without any control of the funds spent. In contrast, Ripple manages Token, 60 percent of all XRP, since its inception, in a trust account and can relatively freely determine the Emission and Immission. This could be for a Bank’s potentially dangerous, since an excessive control of the Token may affect a third party, the safety and operating freedom.
LeMahieu said crypto Briefing that centralization was a critical issue for institutions. The introduction of XRP by banks is, in his opinion, is unlikely, since it would give Ripple Labs, the Creator of XRP and biggest Hodler, a near-monopoly on the entire Forex market:
Many FX firms, with whom I have spoken, [XRP] is considered, and discarded, based on the fact that a company holds more than 50% of the market capitalization. A single company, which holds so much of a Position in a currency that is not something you can accept from a risk perspective.
This is not accepted by the exchange company, as it is a Single-Point-of Failure, of a company brings in a monopoly over the entire market. Regardless of how well they believe that their Governance will be, this will be probably never accepted.
Our biggest differentiator compared with XRP is that we are a genuine, decentralized currency and not a company. […] This is much more suited to the expectations of the financial sector that will never really accept a private unit, which controls around 50% of the currency supply for various purposes.
Whether LeMahieu will be right, however, remains to be seen. Ripple Labs can already boast a proud number of partnerships with banks, how Coin Hero has reported.