A
prominent crypto expert has shed light on why the Dubai government opted for XRP Ledger (XRPL) over Bitcoin for its pioneering real estate tokenization project. The initiative, launched by the Dubai Land Department's Prypco Mint platform, allows investors to purchase fractional ownership in Dubai properties through tokenized shares.
The minimum investment is set at 2,000 dirhams ($540), and the project aims to tap into a potential $16 billion market by 2033. Notably, XRPL was chosen as the blockchain infrastructure for tokenizing title deeds, sparking debate within the crypto community about why it wasn't Bitcoin.
According to expert John Squire, the Dubai government's decision boils down to "brutal efficiency" across six key dimensions: transaction speed, low-cost transactions, scalability, sustainability, institutional friendliness, and widespread use case.
XRPL's ability to settle transactions within 3-5 seconds, compared to Bitcoin's 10 minutes to an hour, was a significant factor in its selection. Additionally, XRPL's low transaction costs, which are a fraction of a cent, were also a major consideration.
Squire emphasized that XRPL's scalability, processing thousands of transactions per second, aligns with the Dubai government's vision for large-scale real estate platforms. Furthermore, XRPL's consensus algorithm is free from energy-intensive mining, making it more sustainable than Bitcoin.
The expert noted that Ripple has partnered with multiple banks and regulators, making XRPL an institutionally friendly choice. In contrast, Squire characterized Bitcoin as unsuitable for major initiatives like Dubai's project due to its limited use case.
Ultimately, the commentator concluded that Dubai chose XRP Ledger because of its speed, low costs, scalability, energy efficiency, and institutional readiness.
