Ripple’s Chief Market Strategist, Cory Johnson appeared on the Fox Business talking about XRP and its use case in the remittance industry especially. While explaining the use case he mentioned that the world wants a technology which is fast to move money and hence Ripple has edge over other cryptocurrencies especially calling Bitcoin and Ethereum as slow.
Cory Johnson feels Ripple is the best to move money
Starting his comparison for the remittances industry with Bitcoin [BTC] and Ethereum [ETH], he said that people want speed when it comes to moving money, especially for cross-border payments. For Bitcoin, Johnson stated that Bitcoin and Ethereum are fascinating coins but is not up to the mark in terms of utility.
According to him closing transactions on Bitcoin or Ethereum a major business problem in today’s world is moving money across borders. Furthermore, according to him, Ripple has created several software products which are built to accelerate the process of remittance taking it to as low as a few seconds at low rates. In his opinion, this factor makes XRP of great value for the future.
Johnson clarified that Ripple is 100% percent focusing on businesses and trying to expand its reach to as many institutions as possible so that the payments that take days to clear can be done in seconds. To quote excerpts from Johnson ‘s interview he said
“It is crazy that today I can send a text message to my friend in Rome with emojis and a gif of Neymar falling down and clever stuff … in 3 seconds. But if I want to move money from New York to Mexico City, it takes 5 days and costs over 500 basis points. This is crazy in this era of technology.”
“Fundamentally, money should move as fast as ideas move, as fast as data moves, and right now it doesn’t. And it’s really expensive. …slow moving money really hurts people, especially moving it across borders.”
While explaining the remittance industry current time lag and costs involved he compared XRP to BTC and ETH and said
“Bitcoin’s slow… Ether is slow. XRP moves really really fast just because its technology is a little bit different.”
Why is Ripple so fast in moving money
Ripple in its comparison to show its speed has put up a chart on its website showing settlement speed. While the traditional settlement system takes 3-5 days, BTC takes 1+ hours, ETH takes 2+ mins while XRP takes 4 secs.
Ripples quick systems: As it is visually shown, the dramatic difference in settlement speed between the three-top crypto-currencies, along with the current traditional correspondence banking settlement times. The times quoted here are for what’s known in the crypto world as “on-ledger” transactions, or transactions that take place on the blockchain directly. Not just “on ledger” Ripple ‘s off ledger system known as XRP Payment Channel ‘s has the highest TPS rate compared to Bitcoin’s lightening and Ethers Raiden
Consensus Protocol: XRP’s consensus mechanism or protocol uses the “Byzantine Consensus Algorithm” to determine if a transaction is legitimate. This also allows the network to be secured with a minimum of electrical power, and much more quickly than Bitcoin and Ethereum that use “proof-of-work.” to validate transactions
XRP doesn’t require mining: Because of its consensus algorithm, XRP doesn’t require centralized mining pools. This allows its network to truly be decentralized in a way that supports the redundancy provided by a distributed system. It also saves an exceptional amount of electrical energy and is categorically better for the environment than Bitcoin or Ethereum.
Effect on Speed: RippleNet provides the high-speed rail lines for the next generation of payments. Like a bullet train of passengers, each ledger contains transactions that can be confirmed in the time it takes to blink. It achieves these speeds through the use of its confirmation protocol.
Regular Ledger Close Times: Because of the Ripple Protocol, the ledger close times to not vary appreciably like block times. For both Bitcoin and Ethereum, a third party cannot predict with any degree of accuracy how fast a new block will be created. The XRP Ledger, on the other hand, has very regular ledger close times, and each one closes (currently) on average every four seconds (or less). This consistency provides a benchmark that can be used by third parties, software, and other systems to predict normal communication with and from the XRP Ledger at a rate that supports near-instant global commerce.
As Ripple’s MainNet, XRP and the Consensus Protocol are much quicker than BTC and ETH, its moves money more securely, hassle-free, cheaply and yes quickly making it a preferred choice for financial institutions. This is what made Cory Johnson confidently compare and confirm the three cryptocurrencies.
Will XRP and Ripple continue to maintain this advantage over BTC and ETH? Do let us know your views on the same.