Taking the considered view of the security, the Ripple has announced the launch of a new 12.0 version of XRP ledger. The highlight of a new version is the implementation of Multisign Reserve amendment which has lowered the XRP holding requirement for a user to act as a transaction signer. According to the previous rules, an XRP user is required to have 10-15 XRP though now this limit has been reduced to 5 XRP.
More importantly, the new update has introduced a new safety mechanism to check the fraudulent transactions – one of the biggest concerns that all the cryptocurrencies face today. The update will enable the servers to automatically detect and issue warnings related to the censorship attempts, thereby enhancing the safety against any fraudulent transactions, according to the announcement made by the company. All the servers need to update to the new version by Feb 27 or else, they will not be able to give transaction confirmation.
Current Crypto Scenario
In line with the other cryptocurrencies, the prices of XRP have been declined for the past one year. Its value stands at $0.30 at the time of the press and has a total market capitalization of around $12.5 billion. One year ago, the XRP was trading at $1.03 and boasted a total market cap of $41 billion. Of late, the XRP has got into a controversy where it has been described as “Centralized Virtual Currency” in the blog post by Finland-based crypto exchange, the Coinmotion. The Finnish exchange added XRP to its trading list of cryptocurrencies and just after the inclusion; the exchange published the blog post terming XRP centralized in nature. The author of the post, Pessi Peura, wrote that investing in XRP is more like buying shares of a company. As XRP is developed and controlled by a single organization, i.e., Ripple labs, there is a certain amount of risk associated with it. If the Ripple Labs is compromised, then it could affect the whole ecosystem of the XRP, claimed the Peura.
The comments of the author have invited outcry from the larger XRP community though some of the blog’s observations have got the substance. For example, Peura urged people to learn the differences between XRP and Ripple as many times these terms are used interchangeably – which is absolutely a right observation. In fact, Ripple Labs is itself concerned with its relationship with XRP and in the past has made the efforts to distance itself from the XRP. Voicing the opinion similar to Peura’s, Mati Greenspan, an analyst at eToro, said that many newcomers today believe that having XRP tokens is equivalent to holding shares of Ripple Labs which is completely untrue in reality.