Re: Ripple a scam?

Manu Sporny wrote:
> Interesting commentary on Ripple being a scam:
> 
> http://ripplescam.org/
> 
> #bitcoin #ripple #payswarm #w3c #futureofmoney
> 
> Some of the arguments are fairly weak, I think the underlying assumption
> that the author is making is that Ripple is attempting to be Bitcoin (it
> isn't, it's a for-profit currency run by a corporation). So, if you
> trust Ripple, most of the arguments go away.
> 
> The open source argument is pretty solid, so is the one about hoarding
> of XRPs. The OpenCoin developer arguing in the comment thread certainly
> didn't help defend Ripple.
> 
> I think the real argument is whether or not Bitcoin is better than
> Ripple, and in this case, it completely depends on what you want out of
> the currency. Fast transactions? Use Ripple. Decentralized and open
> source? Use Bitcoin.
> 
> Any commentary from payment folks on this list?

Yes! I use both daily, and heavily.

There are two things here:
a) Ripple as a clearance system.
b) Ripple XRP as a currency.

Ripple as a clearance system is rather good, it'd be better if it was 
open source, but it's certainly setting the bar and more than usable (I 
use it daily). Worst case the rippled project can be reimplemented using 
the details on the wiki and using the API (which isn't great). The low 
friction and latency is hard to live without once you are used to it.

Another + is that ripple has opensourced some rather good client 
libraries in Javascript, and lots of tooling for it.

Ultimately you cannot directly compare Ripple and Bitcoin directly. You 
can compare the currencies, in which case there are two ways to compare 
and value them.

1) Traditionally, where the value of the currency is the amount of trust 
behind it
2) In ripple case, where XRP is a utility of the network, in which case 
1 XRP has the value of 10k-100k transactions depending on how the fees 
are set.

The aside issue, is the distribution of the pre-mined currency. Are they 
doing this to get rich and get out, or get rich while making things 
better for the general population. If the first case then that sucks, if 
the second case then who cares? I'm sure we all hope Satoshi and the 
original bitcoin pushers are rich today, and likewise I hope the 
Ripplers will be too.

Ultimately, a well defined clearance system similar to ripple, 
supporting multiple currencies will and should become the norm, ripple 
is pushing the populations in the right direction. That can't be a bad 
thing.

Best,

Nathan

Received on Friday, 26 April 2013 16:39:56 UTC