Ripple: Why Corporations, Banks Love It While Crypto Community Hates It
By CCN: Ripple is arguably the most divisive cryptocurrency. Earlier this year, the company surpassed a 200-customer milestone as financial institutions such as Transpaygo, WorldCom Finance, and Euro Exim Bank signed up for RippleNet. If Ripple was like any other cryptocurrency, enthusiasts would have celebrated this accomplishment. Except for the XRP Army, the company is not getting any love from the crypto community.
In this article, we explore the reasons why corporations love Ripple while almost everybody else hates it.
Why Corporations Love Ripple
It is quite easy to understand why corporations love Ripple. By using XRP, corporations such as banks can remove the middleman out of the equation when sending cross-border payments. Without third-party involvement, costs are significantly reduced. For instance, PayPal charges around 3% for electronic payments. If you use Ripple, the average transaction fee is currently 0.0009 XRP, which is negligible considering that the price of one XRP is around $0.37.
Average fees charged by Ripple | Source: BitInfoCharts
Another reason why corporations love Ripple is its scalability. XRP can handle 1,500 transactions per second and has the potential to match Visa’s same throughput of 50,000 TPS. On top of that, recipients can get their money in as little as four seconds.
Ripple’s transactions per second compared to Ethereum and Bitcoin | Source: Ripple
To give you context on XRP’s efficiency, TechCrunch founder Michael Arrington sent $50 million and it took the network three seconds to settle payments. More importantly, the transaction cost 30 cents.
