Ripple’s Market Competitiveness in the Long-term

Abstract

With Ripple becoming the first cross-border payment system open to global financial institutions globally, faster, safer, and cheaper cross-border payment by bypassing expensive intermediaries has been realized. This paper aims to explain how Ripple's long-term competitiveness can make such an efficient ecosystem and promote the development of global payment. This paper demonstrates Ripple's long-term competitiveness from three perspectives. Firstly, we compared the currency Ripple (XRP) with other cryptocurrencies in terms of future value-added, remittance fees, and currency exchange methods and show that XPR's historical value is relatively stable and its future expectation is promising. Secondly, from the basic principles and characteristics of RippleNet operation, this paper discusses the security and privacy protection advantages of the RippleNet system. Finally, from the perspective of the company Ripple Labs, this paper analyzes the supporting forces behind Ripple, which will help us better understand how Ripple stands out from other cryptocurrencies. This paper suggests that based on its cross-border payment services, Ripple has a strong competitive advantage over its peers either as a cryptocurrency and a cross-border payment tool (vehicle). This study also provides a reference for Ripple to demonstrate that it has a large market space and long-term competitiveness in cross-border payment, and virtual currency investment has entered a new frontier.