XRP cross border payments service appears to have come of age and Ripple founder Chris Larsen is optimistic that it can replace Behemoth Swift. The crypto payment outfit has been increased onboarding by banking institutions. This appears to pose a serious disruption in the sector with Behemoth market share on the line.
Swift is among the oldest cross border payment platform still riding on the traditional payment systems. The platform hosts over 11,000 banking and financial institutions spread across the globe. The demand for fast secure and reliable payments services among modern users is on the rise and XRP cross border payments could be the choice.
Trust in XRP cross border payments
In a recent interview, Larsen says that banking institutions do not trust the Proof-of-Work (PoW) used by the Bitcoin network in payment validation. This he says can easily suffer from 51 percent attacks since it only needs a mining pool to control 50 percent of the entire Bitcoin hash rate to manipulate the network giving room for double-spending.
He goes not to add that Proof-of-Work is too risky and banks are not comfortable with the form of settlement. Larsen says:
The miners can rewrite history. So that’s why I think you probably won’t see proof-of-work models be the guts of the global financial system to take the place of Swift and correspondent banking, for example. Whereas I think XRP Ledger, I think is already proving to be, can be that replacement to that existing inefficient system.
However, a platform that estimates the costs of crypto platform attacks, Crypto51 says the 51 percent attacks currently cost over $334,000 per hour to execute. This cannot be easily achievable by most miners to take control of the Bitcoin ledger.
Low fees for XRP cross border payments
XRP cross border payments have been boosted by the relatively low transaction fees. This places in a better position to challenge the likes of Swift. However, the XRP coin is mined and deploys different algorithms towards consensus. Instead, the XRP protocol uses trusted validators to confirm transactions giving it an edge over Bitcoin.
The Ripple fonder added that the platform is working on a company dedicated to enterprise to target Swift and its market share. This will work with ‘existing financial marketplace shakers to face the current and future cross border payment challenges. Larsen says:
Swift systems were designed in the 70s and have been overtaken by modern banking system demands. The systems are incredibly slow with high level of bureaucracy, a problem XRP cross border payments is seeking to solve.