The cryptocurrencies have always been the topic of discussion and a center of attraction within the financial domain. The cryptocurrencies due to its amazing advantages, as well as use cases, has given rise to a fully fledged cryptocurrency market. The various banks, as well as the government of various countries, are really scared about cryptocurrencies, as they are slowly replacing the work of centralized Banks, with automatic pieces of code. With the usage of smart contracts and various other automated Escrow systems, the need of an intermediary in order to have trust in and reliability in an agreement is intently eliminated, as the cryptocurrencies were prominently developed for this purpose itself. Decentralization has distributed the governing authority among the members of the network itself, without any single person taking major decisions. Let us compare the top 3 cryptocurrencies Bitcoin, Ethereum and Ripple.
With the inception of Ripple, in the year 2012 by The Ripple Labs, the cryptocurrency blockchain platform has been collaborating with major banks as well as Financial Institutions, in order to provide business to business Services, as the Ripple protocol itself is a real-time gross settlement payment system. Even this particular blockchain platform, is open source in nature, offers fast transaction speeds, with a lower fee, and its open ledger allows the users to view the transactions.
Ripple has been very famous amongst many other top cryptocurrencies like Bitcoin, Ethereum, Bitcoin Cash, etc but the cryptocurrency cannot be competing with Bitcoin or Ethereum as it’s functional architecture is completely different from Bitcoin or Ethereum. It is to be noted that the Ripple blockchain platform is controlled and run by the Ripple Labs, therefore, it is highly centralized in nature but Bitcoin and Ethereum fall under the category of cryptocurrencies which are decentralized.
The Ripple cryptocurrency platform is predominantly concentrated on its collaboration with the major financial institutions as they have ultra low costs for the transactions which allow the banks to undertake a huge number of transactions by using the Ripple protocol. When it comes to the competitors of the cryptocurrencies, Bitcoin, Bitcoin gold, as well as Ethereum are fighting for the topmost position in the cryptocurrency list. But when it comes to Ripple, surprisingly not many cryptocurrency Blockchain platforms seems to be competing with it. Only Stellar lumens seems to have a direct competition with Ripple, therefore, Bitcoin and Ethereum are not in the direct line of sight of Ripple’s roadmap.
Although Ripple is ranked at the third position on the cryptocurrency list, according to many financial professionals, it shouldn’t be regarded as a cryptocurrency as such. The main reason for such kind of allegation on Ripple is due to the centralized nature of the XRP, which is exactly contrary to the concept of cryptocurrencies in general. In fact, according to them, Ripple shouldn’t be compared with solid cryptos like Bitcoin or Ethereum. Nevertheless, Ripple is still considered to be a cryptocurrency until now, but we never know what the future brings to us, in this unpredictable crypto market.
Ripple has also been under constant accusations, as Ripple’s architectural layout is designed to support the functionalities of the centralized banks the Cryptocurrencies which were inherently developed for the disruption of the banks and financial institutes. The community was also divided into the supporters and the rivals of Ripple. XRP is technical, not a cryptocurrency coin, but it is a native asset of the Ripple environment.
Ripple technically offers permission blockchain type of environment in which only a few other projects in the industry have to offer, where neither Bitcoin nor Ethereum comes any close to such type of working mechanism. The handful of projects which offers similar kind of services are, SWIFT Hyperledger, the Ethereum Enterprise Alliance (EEA) and R3 Corda. Considering Ripple’s popularity gained through its blockchain mask, it would be difficult for these organizations to compete with Ripple in order to achieve the market dominance.
Until now, there have been no strict measures taken regarding Ripple, but it is highly being incorporated into the financial domain.