In one of its most audacious ad campaigns yet, Ripple released a creative or ludicrous visual spectacle (depending on whose side you are on) which illustrated how the current banking system would fare better when it comes to cross-border payment by physically transferring cash via conventional transport systems.
It is safe to say that ripple’s trump card over conventional enterprise payment systems is its capacity to facilitate faster and cost-effective transactions. As expected, this simple but effective business acumen has taken it from obscurity to become one of the most prominent coins in the crypto market. And for a while now, Ripple has reigned supreme as perhaps the only viable crypto solution specifically targeting enterprises cross-border payment needs. However, recent developments are threatening to challenge its resolve to remain at the top.
One of such threats is the emergence of a new horde of enterprise-focused blockchains. And considering that these solutions are products of more established names that have the know-how and talents to give Ripple a run for its money, it is looking likely that 2019 would go down as the year when the battle of enterprise-focused blockchains became a thing.
How Has Ripple Fared So Far?
Ripple has had its fair share of scandals and failures; nonetheless, it would be unfair to overlook how much it has contributed to the growth and the global acceptance of the crypto market. Most impressively, as a result of its formidable lunge to the forefront of elite crypto, pundits began to whisper the words “Ripple is the heir apparent to Bitcoin” in awe of one of its bear market defying price surge last year.
Although this was not a global stance then nor is it now, it, however, highlights the heralded innovative prowess of Ripple. For one, it registered an impressive number of transactions per seconds that even rivaled the transaction rate on conventional remittance platforms such as PayPal.
Secondly, Ripple tailored its services to banks at a time when crypto and centralized financial infrastructures did not particularly see eye to eye. In a way, it stood as the common ground for the two opposing concepts and slowly banks found a way to enjoy the benefits of decentralized tools without losing their essence as centralized entities. Before we knew it, over 200 enterprises had adopted the innovation and Ripple stands as one of the most diverse cryptos in the market.
Nevertheless, it is this same diversity that has earned it backlash from some factions in the crypto community who are hell-bent on preserving the fundamentals of cryptocurrency, or should we say blockchain. A blockchain is taught to only depend on consensus protocols for the supply of its coin as well as its governance.
However, this is not the case for Ripple as it is not mined, neither are the members responsible for the supply of XRP nor do they have inputs to the maintenance of the blockchain. Although Ripple has maintained that its blockchain is centralized, yet, many are still of the notion that it is far from the conventional definition of decentralization.
The Emergence Of Enterprise-Owned Crypto
For a while, we have seen big guns in the tech and financial industry flirt with the idea of creating their own crypto and in 2019 the establishment of their interest in the burgeoning innovation is slowly becoming the reality of today’s crypto market. The crypto narrative is changing and recent news is suggesting that decentralization might need to take the backseat as traditional entities are beginning to launch their own version of crypto where they can retain their position as the centralized authorities.
Facebook alleged FBcoin is a perfect example to back this up, yet, it is the inevitability of JP Morgan Chase and IBM introductions of crypto products that best surmise the expected reshuffling of the institutional crypto remittance market that XRP dominates. More interestingly, both entities are household names who could easily fall back on the technical and business experience they have acquired through the years.
Considering that XRP is a startup, it is safe that it would take a spirited and innovative business model for it to survive the onslaught that is bound to define the market. For it to retain its place at the heart of the market, it must withstand the pressure to deliver much more than JPM coin and IBM’s World Wire could ever offer to enterprises.
What Does The Explosion Of Enterprise-Focused Cryptos Mean To The Average User?
One could argue that the battle we have highlighted is seclusive to the banking sector and that it would do nothing to aid crypto’s quest for global acceptance. In fact, it is not certain that banks would want to completely forego traditional systems for one that sidelines the hierarchal and financially beneficial structures the former represent.
One thing is certain though: large enterprises would continue to favor centralized crypto solutions over the decentralized counterpart for the same reason banks would not want the complete overhaul of the status quo. Public blockchains are the only escape from this reality and this is where the average individual can find solace that he/she has control over his/her finances. While this is a given, the explosion of enterprise-focused solutions is a continuation of the tale on centralization and the quest for making money first.