Advantages and Disadvantages of XR3

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School

Pennsylvania State University *

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Course

830

Subject

Information Systems

Date

May 1, 2024

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docx

Pages

2

Uploaded by DeanMole4461 on coursehero.com

1. Advantages and Disadvantages of XRP, Bitcoin, and Ether : Bitcoin, being the trailblazer in the realm of cryptocurrencies, garnered widespread recognition and value due to its inherent decentralization and deregulated nature. However, compared to Ripple, it suffers from slower transaction speeds, higher fees, and greater software-related risks when it comes to confirming transactions. Ripple's advantages are primarily centered around its rapid transaction speed and low fees, making it highly appealing for cross-border payments. However, its centralized control over the distribution of XRP raises significant concerns regarding decentralization and regulatory scrutiny. Nevertheless, this centralized structure did facilitate Ripple's marketing efforts, particularly towards banks, which greatly aided its integration into cross-country payment systems. Ether's key advantage lies in its introduction of smart contract functionality, which fostered the development of a robust developer community. Despite this significant advantage, Ethereum has faced persistent challenges with scalability issues and concerns about centralization, hindering its progress and adoption. 2. Brad Garlinghouse's Strategy for Ripple : Brad Garlinghouse's strategy for Ripple, with its strong focus on cross-border payments and the ambitious goal of replacing SWIFT, appears to be reasonable. By honing in on this specific market segment and emphasizing Ripple's unique strengths, there was considerable potential for success. However, the achievement of such success relied heavily on navigating regulatory compliance hurdles and staying at the forefront of technological advancements. 3. Recommendations for Brad Garlinghouse : Recommendations for Brad Garlinghouse at the time of the article would likely have included maintaining a steadfast focus on cross-border payments and leveraging Ripple's established expertise in this domain. Emphasizing the importance of regulatory compliance and adeptly navigating the ever- evolving regulatory landscape were critical components of Ripple's strategy. Additionally, forging strategic collaborations with financial institutions and adapting swiftly to emerging technological trends could have further solidified Ripple's market position and relevance.
As the challenges of replacing SWIFT began to surface, it might have been advisable for Ripple to pivot and position itself as an intermediary between SWIFT and US banks. Given the historically slow adoption of SWIFT by US banks, Ripple could have potentially positioned itself as the standard transaction system within the USA, thereby enhancing its market presence and utility. Remaining attuned to market dynamics and agile in responding to industry shifts would have been imperative to ensure Ripple's long-term adaptability and resilience in the ever-evolving cryptocurrency landscape.
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