Ripple’s director Matt Hamilton took to Twitter yesterday to dispel the misconceptions surrounding XRP’s use cases. The token gets a bad rap from those outside its community for the lack of actual use cases, with many critics questioning its purpose and comparing it with other viable currencies in the market. Therefore, Hamilton decided to set the record straight on XRP utility, the reason for its development, and why it’s a better version of Bitcoin(BTC).
In response to a tweet that quizzed XRP’s purpose and called the token a centralized version of Bitcoin, Ripple’s Director of Developer Relations Matt Hamilton suggested that this argument is based on a faulty premise.
Hamilton clarified that XRP was a decentralized coin that was created by Bitcoin developers when they realized the flagship cryptocurrency’s energy usage could not be scaled.
Furthermore, he claimed that XRP’s use cases are “basically the same as Bitcoin” -- enabling peer-to-peer transactions that do not require a trusted third party.
As per some estimates and previously published reports, XRP excels in processing times and transaction charges. While BTC is widely known and used in the industry, its complex mining leads to slower transaction confirmations, which can take minutes. XRP is comparatively much faster with transactions taking only seconds for confirmation at costs lower than those of Bitcoin.
Hamilton also tried to address the issue of XRP’s centralization on Twitter. He stated that contrary to popular belief, the token was more decentralized than Bitcoin. He added that XRPL had around 150 validators and Ripple controls only a small percentage of the network, which needs at least 80% consensus to validate transactions.
He also debated a NANO advocate who claimed that the token did P2P use cases better than XRP.
While Hamilton admitted that Nano has “some interesting features”, he maintained that XRP’s use cases are entirely different.
Additionally, he posted a link to all the services that were using Ripple’s ODL and XRP for micropayments.