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Ripple vs. Ethereum (Not the price, but the merits)

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I am trying to understand the basic relationship between Ripple's protocol and Ethereum's platform.  

To what extent are Ripple and Ethereum competitors, and to what extent are they compatible with each other?

Banks are obviously test driving both.  Is it possible that a bank would adopt one INSTEAD OF the other, or are they likely to adopt both?  Are Ripple employees, when pitching the Ripple protocol to banks, saying "here's why you should use our product INSTEAD OF their product" and vice versa?  Is it possible to do everything that Ripple offers on the Ethereum platform (using ether instead of xrp)?   Is anyone aware of any good articles addressing the similarities and differences between the two, and whether they are competitors or complementary to one another?

I know it's a broad topic, and please excuse my ignorance, but I figure I can't be the only community member who doesn't fully understand the competition/coexist relationship between the two.    

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19 hours ago, joy said:

If xrp is an asset how will ripple solve the tax issues  every time a bank use xrp and there is price change ? 

Price fluctuations are not carried by the banks but by 'money makers' (as with an insurance company, money makers make their living by accepting this risk, sometimes they come out ahead, sometimes they do not).

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My view is that they don't need to compete and they will complement each other, it sounds like a kind of dreamy eyed hodler view that is trotted out when considering any two coins, but for once, in this case I think it is the truth. Both platforms are well regarded by banks, but they both have different primary use cases. Ripple is great at sending transactions while Ethereum is great for dApps  and smart contracts. I believe banks will build on Ethereum at the application level, but there will often be no need for them to use it for firing off transactions, of course it will be used for some transactions but Ethereum is just too complicated to be needed in every use case. For example, it is possible for you to build a wooden surround and install it onto one of the wheels of your car, then get in the car and reverse over a piece of dough enough times to make bread, but it is often easier to just use a rolling pin. Sometimes you don't need a Swiss army knife, you just need one very sharp knife. Another analogy is how there are many different programming languages that make up the internet, or how for some complicated programs you need to use Java and others you can get by with Javascript. I'd actually be happy to see a lot of collaboration between Ethereum and Ripple in future and hope they do so.

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On 6/11/2017 at 0:12 PM, Alluvial said:

 Is it possible to do everything that Ripple offers on the Ethereum platform (using ether instead of xrp)?


Ethereum makes a poor replacement to Ripple. Honestly, I think Ethereum is the rorschach test of the crypto world. It can theoretically do almost anything, so people imagine all kinds of things Ethereum can do but seem to totally ignore the limitations of the system.

There is a reason why Ripple updates RCL's feature set so slowly. Every new feature must not cause unwanted interactions with any other feature. The more flexible a system is, the more difficult this problem becomes. And as we saw with the DAO, security failures can be rather catastrophic.

I have had a few conversations with some very smart people who are convinced that Ethereum programs can basically never be sufficiently secure for enterprise grade fintech. This is because Ethereum by nature can have a nearly infinite number of interactions between programs and features, and it is very difficult if not impossible to guarantee the required level of security.

Beyond the security problem Ethereum also cannot deliver the kind of performance that a system with a more limited feature set can. Ethereum will almost certainly never be able to deliver the kind of speed and throughput Ripple can. This is a real problem if you are trying to pitch ETH as a candidate to replace XRP or even Ripples IOU system.

So yes you can build similar functionality on Ethereum, but I think it is like trying to build a race car out of Legos. Can you? I suppose in some sense yes. But will it be as safe and fast as a real race car? No.  

Edited by Apollo
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agree 100% @Apollo, well said

my other concerns for ethereum are that they are prob going to be in serious legal hot water once regulators start sniffing around crypto

acting as -- essentially -- a securities exchange is just a major target painted on your chest 

let alone the hacks, forks, suspicious distro of dev funds, etc

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