The growing demands of the financial industry, particularly in cross-border payments, have intensified the need for scalable and efficient payment systems. In this context, XRP has emerged as a superior solution compared to Bitcoin and Ethereum, particularly due to its scalability.
SMQKE (@SMQKEDQG), a respected crypto researcher on X, highlighted this in a recent post, noting that it “works in test mode with more than 100 banks” like Santander, Bank of America, and Standard Chartered.
Scalability refers to the capacity of a payment system or network to manage a rising number of transactions effectively as demand increases, all while maintaining speed, cost efficiency, and reliability.
For large financial institutions, the ability to process thousands or even millions of transactions per second without compromising these factors is crucial. XRP, designed with scalability in mind, can handle hundreds of thousands of transactions per second, making it a prime candidate for mainstream adoption in traditional financial systems.
SMQKE highlighted XRP’s credibility and its potential to meet the high-volume demands from established financial institutions. The researcher also pointed out the critical role of XRP’s scalability, stating, “It is designed to improve existing payment technologies by accelerating exchange operations and facilitating the trade of low-liquid assets.” Its scalability is one reason why it is a frontrunner for BRICS adoption.
The Problem With Bitcoin and Ethereum
Bitcoin and Ethereum, despite their popularity, suffer from significant scalability limitations. Bitcoin can handle fewer than 20 transactions per second, while Ethereum struggles with similar throughput issues.
This low transaction speed makes both cryptocurrencies less viable for use in high-volume payment scenarios, such as those required by global financial institutions.
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As highlighted in a document provided by SMQKE, this limitation severely restricts Bitcoin and Ethereum’s ability to function effectively in large-scale payment systems, where rapid transaction processing is essential.
The document SMQKE shared noted that Bitcoin and ETH are unsuitable payment instruments. Their value can fluctuate significantly over short periods, introducing a level of uncertainty that is undesirable in payment systems that require stability and predictability.
This volatility, coupled with low scalability, positions these cryptocurrencies as less favorable options for payment processing compared to XRP.
XRP’s design specifically addresses these challenges. By enabling rapid, low-cost transactions on a large scale, the digital token provides a reliable alternative for financial institutions looking to modernize their payment infrastructures.
Meanwhile, a recently unearthed SBI commercial from years ago predicted that XRP will surpass Bitcoin, and it’s only a matter of time before XRP takes over the market.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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