In this article we’re going to explain some simple facts on why Ripple and XRP are going to succeed. It’s not hard to figure out exactly why. The only thing you need is a realistic mindset.
Four reasons why Ripple and XRP will succeed
1. Ripple is solving a real problem
People who are against Ripple because the company is working with banks need to shift their perspective. It’s understandable that many people in the crypto community are against banks and centralized entities. However, a more realistic view knows that banks will not go away for years to come. Banks are essential in modern society.
Brad Garlinghouse, Ripple’s CEO, clearly understands this and is working with institutions to bring about change:
“It’s incredibly important that the entire industry recognizes that we have to work with the regulators, we have to work with the system […] The blockchain revolution is happening from within the system it’s not going to happen from outside the system.”
We can send rockets to space, build cars that drive themselves and yet it still takes up to five days to make a payment? There are approximately $27 trillion dollars stuck in nostro/vostro accounts alone and Ripple is tackling this problem very precisely. Ripple is solving a multi trillion dollar problem that can’t continue the way it is right now.
Let’s not forget about the high transaction fees that currently exist in many payment systems like SWIFT. This is a problem that must be fixed and luckily Ripple can make all that outdated stuff history.
2. Ripple is a company
A thing that most haters like to mention is that Ripple is a company. This, in their eyes, is a bad thing. But the truth is that if you look at it realistically it’s actually a good thing. Remember Ripple is going after banks and payment service providers, etc. These companies work together and do business with each other. A central entity like Ripple can adapt it’s process in a flexible manner related to the market. A company is ideal because it works within the framework of the present day system.
3. There’s no mining
A lot of cryptocurrencies depend on Proof of Work (PoW). The downside to this is that if a big pool of miners decides to quit mining a specific currency it could result into much higher fees and slower confirmation times.
For example, Bitcoin heavily depends on Chinese mining cartels that have a large share of the BTC mining industry. If they decided to quit mining because it’s too expensive – considering it takes a huge amount of power – or if they switched to another coin that is more profitable to mine, Bitcoin would be left with a big problem.
With Ripple we don’t have this problem. There is zero mining involved. Ripple works with a process that’s called consensus. Consensus is the process by which the entire network agrees on the same ledger. All transactions on the XRP Ledger are confirmed by validators and anyone can start their own validator.
There’s a thing called UNL (Unique Nodes List). A UNL is a list of validator nodes which will likely not collude against the network. For every two UNL’s created, Ripple removes one of their own. This means that Ripple is gradually being decentralized.
3. Ripple works together with regulators
Let’s face it: Crypto regulations are coming soon. Regulation will either make or break a coin. Many coins that aren’t compatible with today’s regulations will fade away. Crypto needs more clarity and certainty. Luckily, Ripple embraces regulations and is in close contact with regulatory agencies.
Compliances such as Anti-Money Laundering (AML) and Know Your Customer (KYC) are built into every transaction that is made on the XRP ledger. Institutional investors will follow as soon as the regulations are put into place. And if we’re talking about institutional investors we’re talking about big money.
All about ripple and xrp 🙂