The landscape of blockchain networks has seen a profound transformation. It evolved from conventional trading to redefining cross-border payments. Now organizations are on the quest for real-time, cost-effective, and transparent global transactions. This makes the limitations of the current infrastructure more evident. High costs and sluggish processing speeds are among the most prominent limitations.

Within this dynamic context of blockchain tech, two prominent players have emerged. These are XRP (Ripple) and XDC (XDC Network). Each boasts unique features and advantages.

Here’s a neutral exploration that aims to compare XDC vs XRP. This comparison will highlight valuable insights into how these networks work. It will also consider their role in improving trade and financial infrastructure. 

What Technology Underlies Cryptocurrencies?

Both XinFin (XDC Network) and XRP have distinctive blockchain architectures and consensus mechanisms. XinFin employs a hybrid blockchain model. It combines features of both public and private blockchains. This versatile approach allows it to cater to a wide range of use cases. 

XinFin uses the XinFin Delegated Proof of Stake (XDPoS) consensus algorithm. This mechanism offers a balance between decentralization and efficiency. This makes it suitable for enterprise applications.

XRP operates on its proprietary ledger — the XRP Ledger Consensus Protocol. It is known for its remarkable speed and scalability. These characteristics are essential for its primary use case of facilitating cross-border payments. 

The XRP Ledger Consensus protocol is not only efficient and reliable. It also provides rapid settlement times and low transaction costs. This makes it a preferred choice for international transactions.

Transaction Speed & Scalability

Both XRP and XDC offer swift transaction speeds. Yet, there are a few notable differences. For instance, XRP currently boasts 1,500 transactions per second. XinFin’s XDC takes it a notch higher, with 2,000 transactions per second.

These distinctions in the transaction speeds play a significant role in converting crypto. Say you want to convert Monero to Bitcoin. Knowing the speed of the network is key, especially due to market volatility.

Where To Use XDC & XRP

XDC is a versatile blockchain network with a range of use cases. This makes it an attractive option across multiple industries in fintech. Beyond trading, XDC is effectively utilized in:

  • Supply chain management. XDC can enhance transparency and traceability through smart contracts and tokenization.
  • Healthcare. XDC’s efficient data management can be of great use in the healthcare industry. It can streamline medical records and guarantee secure sharing of patient data.
  • Real estate. XDC can offer automation and transparency in property transfers while cutting off intermediaries.
  • Asset tokenization. XDC can be used to tokenize assets such as commodities, art, and intellectual property. This makes them accessible for investment and trading.

XRP is a popular cross-border payment facilitator in the banking sector. Like XDC, it also has a lot of use beyond traditional banking. This includes uses in:

  • Microtransactions. XRP’s speed and low costs are important in online content purchases and gaming.
  • Remittances. XRP facilitates money transfers between family members in different countries.
  • Interoperability. XRP can be a bridge currency between blockchain networks. This enables the settlement of transactions and the seamless transfer of value.

As you can see, XDC focuses on enterprise use cases. Meanwhile, XRP’s applications go beyond traditional banking to incorporate blockchain interoperability.

Comparing XDC Vs XRP: Bottom Line

Both XRP and XDC Network offer compelling features and benefits. XDC Network has impressive TPS, cost-effectiveness, and commitment to compliance. This makes it an excellent choice for investors looking for scalability and decentralization. XRP’s focus is on speed and efficiency in cross-border payments.

Both coins excel in their respective domains. The choice between these two solutions depends on your requirements and use cases.