Ripple's tech director explains why bitcoin is doomed to fail

According to CTO David Schwartz, the first cryptocurrency in the last decade has failed "to provide a system that allows people to freely transact with each other without the involvement of any intermediary," ripplenews writes.

"The design of the Proof-of-Work (PoW) consensus mechanism underlying blockchain is such that true decentralization and elimination of intermediaries has never been possible," Schwartz explained.

According to Ripple's CTO, cryptocurrency should be a two-way market when users want a means of saving and a means of exchange. However, bitcoin has turned it into a "one-way market.

XRP Ledger is based on the idea of a distributed agreement algorithm, which is designed to perform the same basic functions, but without the drawbacks of PoW or PoS. The consensus algorithm is simply to set up ordered transactions without any rewards in the cryptocurrency, making the process consistent rather than competitive.

However, Schwartz also pointed out the main drawback of his system: "The main problem with this approach is that the quality of network participants is not always as high. With no rewards in cryptocurrency, the network attracts a less reliable pool of participants, who are more likely to leave without any notice."

As a reminder, last week it was reported that Ripple is increasing the decentralization of its network with a new validator. U.S. blockchain company PAC Global announced that it now has its own node to validate transactions in the XRP Ledger. The move will increase the decentralization of the seventh cryptocurrency.