Why Bitcoin and Ethereum Cannot Compete with XRP in Real-World Global Payments

According to a recent post by cryptocurrency researcher SMQKE, Bitcoin and Ethereum have yet to meet the actual demands of global payment systems. Limited scalability and high transaction costs make them unsuitable for organizations requiring quick and efficient financial transactions. Bitcoin and Ethereum currently have the capacity to handle less than 20 transactions per second. This issue may hinder most financial institutions from adopting blockchain to process a large number of transactions. Meanwhile, today's financial systems need to handle over a hundred thousand transactions in one second. Moreover, the use of proof-of-work technology means that their transactions take longer and consume more energy. All of these issues mean that they cannot integrate with payment networks that require speed, reliability, and better environmental protection. A study from 2022 supported by SMQKE once again highlights this issue. It has been observed that Bitcoin and Ethereum are not technically ready to ensure scalable and compliant transactions. The price fluctuations and volatility of these assets make them less attractive to institutional investors. On the contrary, the XRP Ledger provides a structure designed for enterprise-level transactions. It uses a consensus protocol called the Federated Byzantine Agreement, allowing transactions to be finalized almost instantly in about 3 to 4 seconds. The system can handle up to 1,500 transactions per second at a cost of less than $0.001. High speed and low cost make it more suitable for banks and payment service providers to use XRP. Both Bank of America and Standard Chartered have tested XRP technology to quickly and efficiently meet their large-scale banking needs. Similarly, the low energy consumption of XRP adheres to new sustainability rules being applied in finance worldwide. The blockchain solution company can be followed by large enterprises and is authorized by the government. In summary, XRP is a step ahead in becoming the blockchain of choice for transactions worldwide. Its industry-standard technical setup regarding scheduling, scale, and compliance with rules gives it an advantage over Bitcoin and Ethereum.