A popular crypto expert has revealed why the Dubai government chose XRPL instead of Bitcoin for its real estate tokenization project.
Earlier this week, Dubai’s Lands Division (DLD) announced the launch of Prypco Mint, the first ever tokenized real estate platform. The initiative follows partnerships with multiple entities, including Prypco, Dubai Future Foundation, Ctrl Alt and virtual asset regulators.
Under this initiative, investors can acquire fractional ownership of Dubai real estate by purchasing tokenized shares associated with those properties. The minimum offer for tokenized stocks was fixed at a dirham 2,000 (approximately $540).
Interestingly, Ctrl Alt chose the XRP ledger (XRPL) as the blockchain infrastructure to represent the title certificate. In particular, XRPL will support the formation of Dubai’s tokenized real estate market, which is expected to reach $16 billion by 2033.
As expected, XRPL’s role in the project burned fierce debate in the crypto community and questioned why it was chosen as another major blockchain, such as Bitcoin.
Why the Dubai government chose XRPL over Bitcoin for its real estate tokenization project
In this question, popular social media influencer John Squire emphasized that the Dubai government’s decision to use XRPL instead of Bitcoin in its first real estate tokenization project is summed up in “brutal efficiency” across six major dimensions.
Transaction speed
Squire noted that the speed at which the XRP ledger reconciliation played an important role in its choice. According to him, XRPL resolves transactions within 3-5 seconds, but in a similar task, Bitcoin takes 10 minutes to an hour.
Low-cost transactions
Another factor that influenced the choice of XRPL in Dubai’s real estate tokenization project was the low transaction costs. Squire highlighted that XRP ledger transactions cost a fraction of the cent compared to Bitcoin.
Scalability
According to social media influencers, the ability of XRPL to process thousands of transactions within seconds helped them make their choice. He emphasized that XRPL can process up to 1,500 transactions within a second. However, Bitcoin only processes seven transactions within the same period.
As a result, Squire noted that XRPL’s scalability capabilities are consistent with the Dubai government’s long-term view of supporting large-scale real estate platforms.
Sustainability
Experts have suggested that XRP ledgers are more sustainable than Bitcoin. XRPL uses a mining-free consensus algorithm for transaction processing that supports Dubai’s green and sustainable vision.
Bitcoin, on the other hand, is known for its proof algorithms for jobs that require energy-intensive mining. The activity has attracted criticism from governments around the world in countries where some countries, including China, ban Bitcoin mining.
Institutional friendlyness
Additionally, Squire suggested that Ripple has partnered with multiple banks, regulators and governments over the years, with many of these entities being mounted on XRPL.
However, he characterized Bitcoin as not suitable for major initiatives such as Dubai’s real estate tokenization project.
Wide range of use cases
Finally, commentators highlighted XRPL’s proven utilities across multiple sectors, including cross-border settlements, stubcoin, CBDC and tokenization. However, he showed that Bitcoin only serves as a valuable store with no tokenization use cases.
In particular, Squire highlighted that $1 billion initiatives, such as the Dubai Government Project, prefer utility-based blockchains to those driven by ideology.
“Dubai chose the XRP because it is fast, inexpensive, scalable, energy efficient and engine-compatible.” The expert said.
