Bitcoin (BTC) undoubtedly is the leading cryptocurrency in the world. Indeed, it has been on top since the era of cryptocurrencies and it may remain on top at least in the short term.
However, some people believe that more recent cryptocurrencies with improved underlying technology may replace Bitcoin and make it obsolete in the future. For instance the privacy technology by Monero and the other privacy coins provide greater transaction privacy than Bitcoin.
Even Litecoin which is very similar to Bitcoin provides an easier way to mine with CPU and GPU processors instead of the very expensive ASIC systems used for mining Bitcoin. Litecoin also reduces the mining time from Bitcoin’s ten minutes to 2.5 minutes, making it four times faster.
There are so many other cryptocurrencies with specific advantages over bitcoin but in this article we will focus on Ripple and why it is preferred for payments over Bitcoin, the leader in the industry.
Ripple payment protocol
A good number of altcoins were designed with specific aims in mind unlike bitcoin which is more of a currency than anything specific. Ripple’s strength is that it was designed specifically with the aim of facilitating payments and this makes it better for this purpose than bitcoin even though Bitcoin is significantly more popular.
Most cryptocurrencies run either on Bitcoin or Ethereum blockchain, but Ripple has its own unique technology that sets it apart. Its real secret of success as a means of payment is that it does not compete with financial institutions or other currencies, it only helps to make interbank payments easier across the globe. The developers are really clever because XRP couldn’t compete with BTC if they had the same functions.
Another thing is that users don’t need to convert whatever funds they have (crypto or fiat) to Ripple to use the service. For instance Ripple payment protocol user may be holding U.S Dollars in his account but pay someone else in BTC or any other crypto without having to convert such funds to XRP.
Unlike Ripple however, Bitcoin does not facilitate interbank fund transfers and to pay another person if you are holding Bitcoin, the recipient has to have a bitcoin wallet or you will have to convert your Bitcoin to the appropriate cryptocurrency to be able to make the transfer which takes a significantly longer time at a higher cost than Ripple to complete the transaction.
It is believed that Ripple will grow to dominate the industry maybe not in the sense of market capitalization since Bitcoin has that covered, but in the area of international cross border payments.
The launch of its cross border payment product xRapid was a great milestone in the company’s vision. In fact, three companies signed up to use xRapid immediately following its launch and Ripple currently has up to a hundred clients around the world.
Maybe Bitcoin and Ripple are not in competition but rather it is simply a difference in niches and specializations. But the one thing that is eminent is Ripple payment protocol will replace traditional international payment systems such as Western Union and the rest because transactions that would take 2 to 5 days for these systems to process at exorbitant rates are completed on the Ripple network in seconds at a tiny fraction of the cost.
Industries are already flocking to the Ripple network for faster and cheaper payments to save cost and time which are fundamental aspects of any business. Bitcoin is many things to many people but Ripple by all indications is the future of the global payment industry.