Challenges for cryptocurrencies that are looking to thrive over others and maintain some sort of edge within the markets are concentrated around the actual usability respect of a said cryptocurrency. The major argument has been for years, that cryptocurrency is more “efficient” not only because of its online nature, but for the notion that it can be sent, received, confirmed, and then hopefully settled into someone’s account within seconds. The difficulty with this is that as more users enter the atmosphere, cryptocurrencies may have growing pains, otherwise known as the “scalability” issue; as more users and more volume ensue, will the underlying blockchain be able to keep up? Ripple (XRP) seems to be heading straight towards fixing this dilemma; they’ve recently partnered up with CoinGate to now enable XRP payments as viable forms of currency at over 4500 widely used online shops.
Currency Processing: What does it mean?
CoinGate is a cryptocurrency payment processor; what this means is that they serve as a gateway (CoinGate) in that they facilitate the transactions to and from fiat and cryptocurrency. The processor also allows you to purchase cryptocurrency with your credit card, and their system even has a configurable API. Their platform is more tailored for online merchants, however, and expanding the ecosystem for which cryptocurrency can function effectively. Traditionally this was done by enabling Bitcoin payments on over 4500 widely used online merchants. Now, CoinGate has expanded their initiative and integrated XRP for even faster confirmation and usage.
Ripple’s Emphasis On Speed
Those who have used cryptocurrency may have noticed sometimes that when you send Bitcoin, it can take a few moments before you see it in your wallet; sometimes it can even take a somewhat frustrating amount of time. Adversely, Ripple’s XRP has been praised (And criticized) for its ability to send and receive payments in mere seconds. Therefore, XRP has become a large winner in the community when it comes to down to actually using cryptocurrency. This speed emphasis also enables an optimized framework for merchants and online shoppers. With XRP now integrated to CoinGate, users can easily purchase, send, and even integrate Ripple into their own merchant shops.
This partnership can no doubt expand the digital economy from a utilization standpoint. Ripple’s XRP and its subsequent speed has come under previous scrutiny for it not being “decentralized” enough; that, in combination with the fact that Ripple has previously frozen millions of XRP at their own discretion, has some blockchain users on edge. As the whole point of a distributed ledger is to eliminate central parties freezing issued currencies, there is as a result, a divided number of pro-XRP users and anti-XRP users. Nonetheless, their new partnership with CoinGate can help promote cryptocurrency as a whole, not only the XRP token.