Most of the people that start getting into the crypto world are already are deep in the roots, first heard of Bitcoin or possibly Ethereum but that is just the beginning.
The third largest digital currency following bitcoin and Ethereum as they mostly are ranked by the market cap – Ripple (XRP)! Just after Ethereum the gold-rush and attention went straight for Ripple.
The CEO of Securrency – Dan Doney left its comment towards the aim of Ripple – it wants to make an era-changing development when it comes to financial services in contrary to the two leading cryptos which want to displace these services totally.
It looks like Ripple is in its start of its dais and just by that it should not be missed and put aside as it includes billions of dollars worth of digital currency on its balance sheet [Ripple only owns about 61% or $16 billion].
“As the third largest digital currency by market cap, Ripple remains a mystery to many despite being older and arguably more suited for many financial transactions than its siblings,” Doney said. “Bitcoin, Ethereum, and Ripple all use distributed ledgers to transmit value providing security, transparency, immutability and clearing of transactions without intermediaries. But the similarities end there.”
“Payment systems today are where email was in the early ’80s,” Ripple’s chief cryptographer, David Schwartz, has been quoted saying. “Every provider built their own system for their customers, and if people used different systems, they couldn’t easily interact with each other. Ripple is designed to connect different payment systems together.”
According to Shwartz:
“big companies lose their control over the flow of other people’s money just as they’ve lost control over the flow of information.”
What makes Ripple even more different compared to Bitcoin and Ethereum is that the later two use mining to close-down a block of transactions while Ripple uses:
“Mining is a cryptographic process used to both secure the network and ensure equitable access to the creation of new value on the network,” Doney said. “While brilliant in design, Bitcoin and Etherem mining is an ecological disaster: consuming more power than the nation of Iceland at nearly 20TWh/yr, carrying an expensive per transaction price, clearing slowly (~minutes); and supporting limited transaction volume (~400,000/day).”
The Volume need to support global transactions and payment that should be done as financial services can not be kept stable and strong with the above mentioned models with no reform or improvement:
“On the other hand, Ripple’s consensus model is fast — clearing times ~2 seconds — consumes negligible power and scales,” Doney added. “Purists criticize Ripple as the model has certain features, such as the ability to freeze an issuance (coin), that confer centralization.”
The best taken by both sides would be the best solution for functions that give strength to regulations and increasing efficiency.
Doney adds that “pragmatic” startups like Securrency leverage this power to bridge from the old to the new, enabling trillions of dollars of value in legacy value to gain the global reach of cryptocurrencies while retaining investment grade characteristics of traditional securities.