Ripple Criticized by Forbes

In its latest article, Forbes classified the XRP Ledger (XRPL) and 19 other blockchains as underperforming - to the extent of labeling them "zombie chains." According to the report, these networks, including XRPL, need more utilization, despite their presence in the blockchain ecosystem for over a decade. Forbes specifically focused on XRPL, although the network demonstrates activity, with over 5.1 million wallets indicating ongoing user interest.

Forbes' analysis highlights XRPL's inability to significantly impact global money flows, questioning its relevance in the cross-border payments sector. According to Forbes, the network falls short of competing with SWIFT, the dominant player in cross-border transactions. Despite Ripple's efforts through its ODL product, which reportedly processed significant volumes of remittances, Forbes remains skeptical about XRPL's effectiveness in replacing traditional systems.

XRPL's Role in Efficient Payments Overlooked

Forbes also criticizes XRPL for its perceived lack of utility, despite a valuation exceeding $36 billion. The publication points to the low transaction fees on the XRP Ledger as evidence of its limited use, with total costs in 2023 amounting to $583,000. Forbes views this as evidence of the network's imperfection, ignoring the fact that XRPL's low fees are designed to prevent spam transactions, not as a primary revenue source.

The article has sparked criticism from several cryptocurrency figures. Critics argue that Forbes' analysis lacks depth, overlooking XRPL's contributions to efficient, low-cost cross-border payments. Ripple's achievements, such as strategic acquisitions and pilot programs for central bank digital currencies (CBDCs), were also dismissed by Forbes as too little, too late. This stance has led to debates about the criteria used to assess blockchain utility and the significance of transaction fees as a measure of success.

Bitcoin and Ethereum the Only Winners in Forbes Review

Forbes' stance on blockchain utility extends beyond XRPL, naming 20 networks it deems purposeless. This list contrasts sharply with the publication's praise for Bitcoin and Ethereum as the only blockchains with meaningful contributions. The criteria for such classifications raise questions about methods for evaluating blockchain effectiveness and the future of digital currencies in financial systems.

The article has received mixed reviews, with insiders questioning the conclusions and advocating for a more comprehensive vision of blockchain technology. The discussion underscores the dynamic nature of digital finance and the ongoing search for alternative models to traditional banking systems. In the course of the discourse, the roles of utility and success may undergo radical reinterpretation in the blockchain domain.7

*This is not financial advice