It’s true that Ripple has been hit with a couple of lawsuits, and the crypto XRP is not classed yet as a currency by the SEC, but there have been enough hints that it’s definitely not a security. Only some investors who are not representative for the Ripple community or the whole crypto space believe that Ripple is a security these days and these are the voices that want the government to agree with them.
What they are not taking into consideration is the fact that if Ripple were to be classed as a security, XRP would not be the only one who would suffer, but the whole crypto space. Anyway, this is less likely to happen, so instead let’s focus on the key advantages that come with Ripple and its XRP.
Ripple’s Codius smart contract platform is relaunched
Ripple was developed before Ethereum, and this is probably just one of the reasons for which the project was never focused on smart contracts compared to Ethereum. A while ago, Stefan Thomas, Ripples Chief Technology Officer, said that “We just didn’t feel like smart contracts was a very mature industry at that point. Frankly, the use cases seemed somewhat dubious in value.”
On the other hand, Ethereum had its problems, and while it’s still the smart contracts leader, it has been criticized from the very beginning due to lack of scalability and high fees. Ripple’s smart contract called Codius was brought back by Thomas, and it can deal with both the of issues that we just mentioned. After Codius relaunch, Ethereum’s issues will be put into the spotlight again and Ripple’s superiority will surface once more.
Ripple has low fees and high scalability
Bitcoin and Ethereum are the pioneers in the crypto space, but these two are still very slow and costly as well. Ripple manages to beta both of them: just consider the transfer speeds – Bitcoin, 6 TPS; Ethereum 15 TPS; XRP, 1500 TPS. You see definitely see that the difference is in orders of magnitude.
This is still far from Visa’s transfer speed but compared to Bitcoin and Ethereum, Ripple is definitely the winner.
Regarding the fees, BTC and ETH fees continue to rise, and XRP’s costs are still very low, opening the crypto market for a broader user base. This is one of the reasons for which Ripple is excellent for micropayments and international transactions. Ripple never aimed at becoming a retail coin, but it could become one considering its speed and low fees.
Ripple is not targeting end users, but banks and financial institutions and it wants them to adopt RippleNet and the blockchain.