Why Bitcoin and Ethereum Can’t Compete With XRP in Real-World Global Payments

According to a recent post by crypto researcher SMQKE, Bitcoin and Ethereum continue to fall short in meeting the real-world demands of global payment systems. Their limited scalability and high transaction costs make them unsuitable for institutions requiring fast and efficient financial settlement.

Bitcoin and Ethereum are currently capable of handling fewer than 20 transactions per second. This problem can stop most financial institutions from adopting blockchain to process many transactions. Meanwhile, today’s financial systems need to handle more than a hundred thousand transactions in one second.

Furthermore, the use of proof-of-work technology means their transactions take more time and use a lot of power. All these issues mean that they cannot integrate with payment networks that require better speed, dependability, and environment protection.

Also Read: $471M XRP Treasury Move: 3 Major Firms Bet Big on Ripple’s Digital Asset

A research paper from 2022 backed up by SMQKE again points out this issue. It is found that Bitcoin and Ethereum are not technically ready to ensure scalable and compliant transactions. The changing prices and ups and downs of these assets make them not very appealing for institutional investors.

XRPL’s Design Gives It the Advantage in Global Financial Transactions

In contrast, the XRP Ledger offers a structure designed for institutional-grade transactions. It uses a consensus protocol called Federated Byzantine Agreement, allowing for near-instant transaction finality in about 3 to 4 seconds. The system can process up to 1,500 transactions per second at a cost of less than $0.001.

High speed and low costs make it fit more for banks and payment providers to use XRP. Both Bank of America and Standard Chartered have tested XRP technology for quick and efficient setup made for their large-scale banking needs.

Likewise, XRP’s ability to use little energy follows the new rules for sustainability being adopted in finance worldwide. The company provides a blockchain solution that can be followed by major businesses and authorized by governments.

To sum up, XRP is well ahead in becoming the chosen blockchain for transactions around the world. The technical set-up is up to the industry standards for schedule, sizing, and observance of rules, giving it benefits over Bitcoin and Ethereum.

Also Read: Bitcoin’s $100K Struggle Could Signal Market Saturation, Says Bloomberg Analyst

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