Bitcoin has long been the king in the crypto market, and the second place has been largely dominated by ethereum. These two have been the most prominent crypto entities over the past few years. Bitcoin remains at the top as it started the digital currency revolution back in 2008, while ethereum enjoyed its second position for quite a long time owing to the services that are provided by it in forms of building decentralized applications (dApps).
While bitcoin does not allow users to develop dApps, Ethereum allows users to use its blockchain to develop and deploy their own dApps. It provides a whole ecosystem due to which it has enjoyed its 2nd position for the most part. But now, as per CoinMarketCap, XRP has taken over in terms of its market capitalization. So why XRP is becoming more important and significant?
XRP, often termed as Ripple, is largely controlled by the decentralized network Ripple. XRP is used by the platform for the transfer of value. Its main purpose is to act as a proxy, or mediator, for other cryptocurrencies and fiat.
The decentralized Ripple network is largely aimed at becoming the next global interbanking system for global usage, with XRP being its native currency. Ripple aims to streamline the process of asset transfer for existing financial bodies by making it faster, and worldwide.
So how do XRP and ethereum compete?
Ethereum: Ethereum gets its premium status owing to the ecosystem that it provides for dApp development. It is not just being used for performing transactions, it is working towards the advancement of the blockchain technology overall.
XRP: XRP wants to utilize the decentralization factor to connect different financial institutions across the world to perform their operations faster. Right now, international payment frameworks take days to process completely, and with Ripple, this whole thing is reduced by a large factor.
Who’s the winner then? The answer, it doesn’t matter.
Right now, the crypto and blockchain universe is very nascent. It is still in its development phase. Both the projects are trying to consolidate two different spectrums of the crypto and blockchain world overall. While one is trying to expand the usage and adoption of blockchain in the general public, the other is trying to use it to build a viable global framework.
There is no point in comparison. Both currencies are the kings of their own respective universes.
And the winner in all this…is crypto.