$XRP A document shared by crypto researcher SMQKE has drawn attention to Morgan Stanley’s analysis of different cryptocurrency validation models, with specific mention of XRP and how traditional banks operate.
The research report compared various mechanisms, including Bitcoin’s Proof of Work, Ethereum’s transition to Proof of Stake, and other alternatives such as Proof of Authority, Proof of Reserves, and Proof of History. The document notes that XRP operates on a Consensus Protocol system, which does not rely on energy-intensive mining.
Morgan Stanley’s report emphasized that XRP’s Consensus Protocol is significantly more efficient than Bitcoin’s Proof of Work.
According to the findings, the XRP Ledger confirms blocks in approximately three to five seconds, compared to Bitcoin’s average block time of ten minutes. This speed advantage, combined with its lower energy consumption, distinguishes XRP from traditional proof-of-work systems.
The report further explained that Ripple has created a payments system that involves a centralized intermediary to validate transactions, making it structurally different from Bitcoin but functionally closer to how traditional banks operate today.
✨Banking Sector Comparisons
The document highlighted that XRP’s validation system aligns more closely with existing financial infrastructure. While Bitcoin relies on decentralized miners competing to solve cryptographic puzzles, XRP’s Consensus Protocol enables faster transaction verification with significantly reduced energy requirements.
Morgan Stanley pointed out that this makes XRP incomparable to Bitcoin directly but more in line with conventional banking operations, which use centralized intermediaries to authorize payments.
This perspective aligns with broader industry views that the adoption of digital assets by banks and central banks depends not only on efficiency but also on how closely these systems resemble traditional financial processes. XRP’s model, with its intermediary structure, provides an operational framework that is more familiar to banks.
✨Reactions from the Community
An X user, Chongerelli, responded to SMQKE’s post by outlining his perspective on the adoption of Bitcoin versus XRP. He stated that his concern with Bitcoin lies in the reluctance of banks and central banks to accept it as a reserve asset or settlement mechanism.
Citing public statements made several years ago by former International Monetary Fund officials, including Christine Lagarde, Chongerelli expressed his conviction that Bitcoin will continue to face resistance from institutional players. He contrasted this with XRP, which, based on the Morgan Stanley report, operates in a manner more consistent with traditional banking frameworks.
The recognition by Morgan Stanley underscores a growing acknowledgment among financial institutions of the differences between cryptocurrency systems. XRP’s efficiency and its operational similarity to existing banking structures could position it as a more viable tool for cross-border payments and settlement compared to Bitcoin.
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