Why hate RIPPLE (XRP)? The fastest, cheapest & most scalable digital asset.
Why hate Ripple?
Ripple is a payment protocol. Since the introduction of the Ripple coin (XRP), there is a widespread hype going on, feeding all kinds of heated crypto investor discussions. The major criticism of Ripple within the cryptocurrency community, is that it is [quote]: ‘owned by the banks’. But the banks don't own or publish the XRP coin. Although many banks are now on Ripple’s blockchain network, Ripple is its own organization. It is based around a shared public ledger and works as a completely different technology than Bitcoin. Banks are not interested in the technology of crypto coins in itself, but in the underlying distributed ledger technology like Ripple is.
As digital coins are build with the aim and vision to replace existing fiat currencies, Ripple is build to become a bridge to allow banks to make cross-border payments and transfers faster and cheaper. Below image from the Ripple website shows the difference in speed and cost in a payment process. Traditional systems: 3-5 days, Bitcoin: 1+ hours, XRP: 4 seconds. That is stunning in itself.
The Ripple organization says: ‘Today is takes about 3-5 days to send money from one country to another through a bank, which usually involves high fees, the risk of the payment being delayed (or never go through altogether) etc… Ripple fixes transfer shortcomings with an average settlement time of 4 seconds, at a fraction of the cost. By allowing financial institutions to source liquidity on demand, in real time, without having to pay foreign transaction fees or pre-fund nostro accounts (accounts that banks hold in a foreign currency), XRP will help them to expand into new markets, lower foreign exchange costs and provide faster payment settlement for its customers.
Ledger System
So Ripple is a ledger system, designed to solve cross-border payments and create an Internet of Value where we move money as efficiently as we exchange information. The Ripple solution involves creating a common standard for payments and using XRP as the digital asset that will bring together currently disconnected ledgers and blockchains.’ [source - ripple.com]
I ask myself: what is wrong with building bridges to have money transfers go smoother and less expensive? In our world economy one cannot just exclude or wipe out all bank institutions in favor of decentralized crypto transfer systems. I don’t see banks go away in the foreseeable future. The hate or suspicion that is going on against the Ripple coin is therefore unreasonable and unnecessary. The word ‘banks’ seems to blind many cryptocurrency fans to the fact of the power of blockchain solutions for all kinds of services and institutions.
Thank you fellow Steemers for your opinion!