Why Ripple Surpasses Ethereum (Why Ripple Coin Rises So Much)

Why does Ripple surpass Ethereum? Editor’s note: This article comes from Cointelegraph China (ID: cointelegraphChina), written by BENJAMINPIRUS, authorized republication by Odaily Star Planet Daily.

After the birth of Bitcoin, Ripple has surpassed Ethereum. Why is it considered more valuable than most cryptocurrencies currently on the market? What is Ripple? What advantages does it have? Why does it surpass Ethereum? Ethereum is the “next tech giant” in the blockchain field. Although Ethereum and Ripple have had frequent collaborations, Ethereum is not as striking from a technical perspective. However, if we view Ripple as a new payment network, we will find that it has tremendous potential in terms of application scenarios. And when people consider these opportunities and prospects, the immense influence of this emerging technology will undoubtedly be further magnified.

As we introduced in previous articles:

-With the emergence of major virtual digital assets such as Bitcoin, and the growing demand for the financial system, blockchain will become an important part of the future financial industry.

Because many companies want to take advantage of the benefits of distributed ledger technology, they have started to use Ethereum as one of their main solutions for settlement systems. However, Ethereum still has some issues to overcome.

For example, in 2017, Ripple released a white paper on XRPLedger and its tokenization method. This white paper detailed how to create and distribute XRP and use it as a medium of exchange.

Now, according to data on GitHub, as of the end of 2019, the project has a user volume of about $400 million. At the same time, XRP prices have shown a significant downward trend in the past two months.

Since 2018, Ripple has been actively seeking support from other blockchain platforms. Recently, the company announced a plan to promote decentralized cross-border payment services, including R3’s Corda blockchain and R2’s Hyperledger Fabric.

Why does Ripple Coin rise so much

Why does Ripple Coin rise so much?

There are over 100,000 cryptocurrency holders worldwide, and these investors are fans of Bitcoin.

Recently, the US SEC has also started an investigation into XRP. According to the latest official statement, the US Securities and Exchange Commission (SEC) has filed lawsuits against Ripple Labs and Bitcoin Suisse, accusing them of selling XRP tokens to an unregistered broker-dealer to evade regulatory oversight.

However, this does not mean that XMR will become a “legitimate” company. On the contrary, it is a new technology that can be used as an alternative to other financial products. If the reason for the rise in digital asset prices over the past year is the extreme volatility of Bitcoin and Ethereum prices, is its value now over $1 million? Or is it because Bitcoin itself has some issues or just market participants’ enthusiasm causing it to lack actual usability? Therefore, it may be difficult to change this situation at the moment.

However, from the words of Brad Garlinghouse, the founder and CEO of Ripple, it can be seen that he believes Ripple Coin is not a secure, transparent, and decentralized virtual payment system. He said: I think we should see it as an investment option. But at the same time, Ripple Coin also provides some basic functions, such as users being able to directly purchase all software on this blockchain network and similar services.

In addition, he also stated that he hopes people can gain returns by using smart contracts for transactions. Apart from that, he refers to XRP as a “new programmable currency” rather than a “speculative digital asset”.

So one of the main reasons why Ripple Coin is so popular is to follow traditional financial institutions and achieve this goal in the cryptocurrency world.

Reportedly, Ripple is collaborating with banks to develop a stablecoin based on Ethereum, expected to be launched in the next few years. Ripple co-founder Jed McCaleb has previously discussed how XRP can improve cross-border remittance processes, but he did not specify why he is not doing so. He emphasized two important points:

1. Ripple plans to use distributed ledger technology to provide enterprises with faster speeds, so they do not have to wait for bank deposits or withdrawals;

2. Ripple will establish a customer-supported open-source platform to address the challenges of complexity and interconnectivity and ultimately eliminate all potential problems.