The core narrative of Bitcoin lies in its decentralized and censorship-resistant characteristics, regarded as the digital gold and a symbol of free finance. This concept has transcended multiple cycles of bull and bear markets and gained global recognition. In contrast, the story of XRP focuses on cross-border payments and connections with traditional financial institutions. Although it has practical commercial applications, it lacks the global faith and consensus that Bitcoin possesses.
Bitcoin uses a highly decentralized Proof of Work (PoW) mechanism to ensure network security and autonomy. XRP, on the other hand, uses the Unique Node List (UNL) consensus mechanism, where nodes are mostly recommended by Ripple Labs, with over 80% of the validating nodes coming from official sources, resulting in a relatively lower degree of decentralization. This creates a significant difference in terms of technology and governance.
The Bitcoin community mostly consists of users pursuing financial freedom and anti-authoritarianism, viewing BTC as a symbol of faith. In contrast, XRP holders tend to be more pragmatic, hoping for Ripple’s adoption by banks to drive up prices. The cultural differences between the two communities are significant, making it difficult to establish an equal global consensus asset status.
If XRP can expand its market share in the cross-border settlement field and become a bridge between traditional finance and DeFi, it is still expected to occupy an important position in the crypto financial ecosystem. However, if there is an expectation for XRP to become an asset with global consensus and faith like Bitcoin, it faces significant challenges.
The core narrative of Bitcoin lies in its decentralized and censorship-resistant characteristics, regarded as the digital gold and a symbol of free finance. This concept has transcended multiple cycles of bull and bear markets and gained global recognition. In contrast, the story of XRP focuses on cross-border payments and connections with traditional financial institutions. Although it has practical commercial applications, it lacks the global faith and consensus that Bitcoin possesses.
Bitcoin uses a highly decentralized Proof of Work (PoW) mechanism to ensure network security and autonomy. XRP, on the other hand, uses the Unique Node List (UNL) consensus mechanism, where nodes are mostly recommended by Ripple Labs, with over 80% of the validating nodes coming from official sources, resulting in a relatively lower degree of decentralization. This creates a significant difference in terms of technology and governance.
The Bitcoin community mostly consists of users pursuing financial freedom and anti-authoritarianism, viewing BTC as a symbol of faith. In contrast, XRP holders tend to be more pragmatic, hoping for Ripple’s adoption by banks to drive up prices. The cultural differences between the two communities are significant, making it difficult to establish an equal global consensus asset status.
If XRP can expand its market share in the cross-border settlement field and become a bridge between traditional finance and DeFi, it is still expected to occupy an important position in the crypto financial ecosystem. However, if there is an expectation for XRP to become an asset with global consensus and faith like Bitcoin, it faces significant challenges.