A relief pitcher to overcome the limitations of traditional finance, will Ripple dominate the decentralized market?

▲ XRP (Ripple) ©

XRP (Ripple) has been identified as a key bridge asset that will replace the slow and inefficient existing banking system and lead the explosive popularization of the decentralized finance (DeFi) era, signaling a new paradigm shift in the virtual asset market.

According to crypto media outlet Bitcoinist on April 24 (local time), Vet, an XRP Ledger (XRPL) validator, analyzed that while decentralized finance still has a long way to go to completely replace traditional finance (TradFi), XRP is perfectly positioned to play a leading role in this transition. He highlighted the clear limitations of traditional finance, such as slow payment speeds, high transaction costs, and limited cross-border accessibility, emphasizing the need for innovation.

Indeed, XRP is specialized in cross-border payments and liquidity provision, making it evaluated as a key intermediary to reshape the flow of value between the two financial systems. Vet explained that XRP possesses a superior protocol design and robust real-world use cases that differentiate it from other digital assets, making it most suitable for real-world financial applications.

However, sharp counterarguments were also raised against these claims of superiority. Hugo Philion, co-founder of Flare Network, strongly criticized Vet's remarks as merely "dancing on the graves" of other projects' shortcomings. He reminded that the XRP Ledger also experienced several bugs and issues during its deployment, dismissing the claim of true superiority as a premature judgment that can only be discussed after large-scale proven performance in a real environment.

In response, Vet immediately refuted Philion, stating that Philion had completely misunderstood his point. The XRP Ledger is designed to deliberately exclude complex risk factors or staking through smart contracts, thereby fundamentally blocking fatal downside risks that occur in other ecosystems. He expressed strong confidence in the inevitable changes in the market, citing the upcoming XLS-66 upgrade as a perfect example of this financial structural stability.

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