Ripple Makes Vis-a-Vis Comparison With Other Cryptocurrencies for Transaction Costs
The cryptocurrency mania has now started to sink in within the acceptable levels of retail as well as institutional investors. Bitcoin along with other altcoins have shown a lot of strength this year as the overall cryptocurrency market cap surges to just below $500 billion and Ripple reaches an all-time high price of $0.51.
However, the immediate challenge that lies ahead to the crypto-community is that with a sudden surge in investor participation, major blockchain networks for currencies like Bitcoin and Ethereum are facing issues regarding scalability. With the massive influx of investors, the Bitcoin network is currently facing challenges to accommodate and process huge orders and as a result, this has translated into slower transaction speeds and increasing transaction costs.
Now this seems the violate the major USP of transacting in a decentralized network against the centralized network. The major advantage of the decentralized network is low transaction costs and faster speed. But somehow Bitcoin network is getting clogged up with huge investor participation.
But one cryptocurrency and a popular altcoin which has worked in the direction since the very beginning is Ripple (XRP). Ripple says that with some very real institutional use cases, its development team has managed to design the solution pertaining to liquidity and global payments.
Since the very beginning, Ripple has managed to address the issues regarding speed, costs and scalability and holds an upper edge in comparison to other payments providers, corporates and banks. Ripple has recently shared a data showing comparison as to how it leads other cryptocurrencies and offers a better and reliable solution.
However, note that in contrast to Bitcoin, Ripple claims that its payment model is an enterprise-ready public blockchain designed for payment providers and banks to process cross-border payments. As a result, ever since the release of XRP token in 2012, Ripple has been constantly subject to accusations of being a centralized network.
Clarifying the matter to the crypto-community, Ripple’s technology chief Stefan Thomas explained in his blogpost as to how the team is working towards decentralizing the XRP ledger. Thomas stated: “Decentralization of XRP Ledger is a process that started right at its inception and has been ongoing since. We intentionally haven’t rushed the process and have been making continuous progress all along. To meet the growing demands of our customers, we need to diversify the validator ecosystem to further increase resiliency and robustness. We believe these efforts will lead to XRP becoming globally adopted as the digital asset for payments.”
It looks like Ripple is taking very calculated and measured steps in its further push within the digital space and is working in a direction that keeps itself ready to face the upcoming challenges in the blockchain space.