A popular crypto expert has revealed why the Dubai government chose XRPL instead of Bitcoin for its real estate tokenization project.
Earlier this week, the Dubai Land Department (DLD) announced the launch of its first-ever tokenized real estate platform, Prypco Mint. The initiative follows a partnership with multiple entities, including Prypco, the Dubai Future Foundation, Ctrl Alt, and the Virtual Assets Regulatory Authority.
Under the initiative, investors can obtain fractional ownership in Dubai properties by purchasing tokenized shares tied to those properties. The minimum offer for the tokenized shares was pegged at 2,000 dirhams (approximately $540).
Interestingly, Ctrl Alt selected the XRP Ledger (XRPL) as the blockchain infrastructure for tokenizing title deeds. Notably, XRPL will support the formation of Dubai’s tokenized property market, which is expected to hit $16 billion by 2033.
Expectedly, XRPL’s role in the project ignited intense debate in the crypto community, with some questioning why it was chosen over other leading blockchains like Bitcoin.
Why the Dubai Government Chose XRPL Over Bitcoin for Its Real Estate Tokenization Project
Amid this query, popular social media influencer John Squire emphasized that the Dubai government’s decision to use XRPL instead of Bitcoin in its inaugural real estate tokenization project boils down to “brutal efficiency” across six major dimensions.
Transaction Speed
Squire noted that the speed at which the XRP Ledger settles transactions played a crucial role in its selection. According to him, while XRPL settles transactions within 3 – 5 seconds, a similar task takes Bitcoin between 10 minutes and an hour.
Low-Cost Transaction
Another factor that influenced XRPL’s selection in Dubai’s real estate tokenization project is its low transaction cost. Squire emphasized that, compared to Bitcoin, transactions on the XRP Ledger take a fraction of a cent.
Scalability
Per the social media influencer, XRPL’s ability to process thousands of transactions within seconds was instrumental in the selection. He emphasized that XRPL could process up to 1,500 transactions within a second. However, Bitcoin only handles seven transactions within the same period.
Consequently, Squire noted XRPL’s scalability prowess aligns with the Dubai government’s long-term thinking of supporting large-scale real estate platforms.
Sustainability
The expert suggested that the XRP Ledger is more sustainable than Bitcoin. XRPL uses a consensus algorithm that is free of mining for transaction processing, supporting Dubai’s green and sustainable vision.
On the other hand, Bitcoin is known for its proof-of-work algorithm, which requires energy-intensive mining. This activity has attracted criticism from governments worldwide, with some countries, including China, banning Bitcoin mining.
Institutional Friendliness
In addition, Squire suggested that Ripple has partnered with multiple banks, regulators, and governments over the years, and many of these entities have been onboarded to XRPL.
However, he characterized Bitcoin as unsuitable for major initiatives like Dubai’s real estate tokenization project.
Widespread Use Case
Finally, the commentator highlighted XRPL’s proven utility across multiple sectors, such as cross-border settlements, stablecoins, CBDCs, and tokenization. However, he indicated that Bitcoin only serves as a store of value with no tokenization use case.
Notably, Squire emphasized that billion-dollar initiatives, like the Dubai government project, usually prefer utility-based blockchains over those driven by ideology.
“Dubai chose XRP because it’s fast, cheap, scalable, energy-efficient, and institution-ready,” the expert remarked.
