 | Few weeks ago I had a pleasure to read @danielwrites post called “Fusion : A New Era Of Cryptofinance” and I remember asking him what are differences and similarities between Fusion and Ripple. |
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| Today I have a pleasure to invite him to share his knowledge on this particular topic. If you like to show your support, then upvote or resteem this post (you can do both :) and obviously don’t forget to follow @danielwrites :) |  (pic source: info.umkc.edu) |
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So without further ado, let me present to you Daniel @danielwrites.
INTRODUCTION
If you've ever made an international transaction through any of the available conventional banking platforms ,I bet you were triggered by the exorbitant charges and inefficiency in operation,not to mention the ages and countless protocols probably required before cash is made available to the receiver . I was too, and having been on the either side (receiver and sender) of the see-saw at least once ,I can tell that it is particularly not a pleasant experience !
Technological innovations are transmuting the world into a much better place .Everyday,man strives to decipher an easier means of carrying out tasks.Some decades ago,technological discoveries of today would have seemed virtually impossible,and likewise now,that of decades to come .As found in this article, cryptocurrencies are gaining widespread acceptance as a means of making payments.Blockchain technologies are looking to revolutionise the way financial transactions are carried out by revealing to the world how the adoption of smart contracts and decentralization could lead to more efficient and cost effective transactions.This subtle alchemy has sparked an era of cryptofinance,with smart contracts replacing written contracts, cryptocurrencies replacing fiat currencies,decentralization laying centralisation to rest,and importantly,the elimination of middleman .
On a closer look, it seems as though,another "genie has been let out of the bottle" .These cryptocurrencies carry a token (value) which are used for transactions within the confines of their respective ecosystems.Cross-platform compatibility and interoperability has long been desired for more efficient and lower cost transactions. The kind of flexibility achieved in information transfer as seen on the internet is one that blockchain developers strive to attain for values (tokens).
INTERNET OF THINGS
As a result of frequent comparison to "Internet of Things" ,the proposed means of achieving cross-platform compatibility of values has been dubbed the "Internet of Values".
In the words of Chris Larsen ,"Every marketplace starts with a chicken and egg problem;the supply side won't come to table or make significant change unless there's demand.And demand is challenging to prove without real supply."Rising to the challenge of meeting the impending demand of the cryptofinance world (i.e ease of value transfer and cross-platform compatibility) are Ripple and Fusion. Though both entities have diverse means of operation,they both aim to bring to fruition,the "Internet of Values".
HOW DOES RIPPLE ATTAIN IOV*?
| Ripple's operation can best be seen as a solution to the problems observed in the first case scenario (processing international transactions).Cross border value transfers have been hampered by problems of high costs and longer delivery time usually imposed by each of the intermediaries as seen in the first image. |  (pic source: www.ripple.com) |
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Ripple achieves an ease of value transfer similar to that of information (without exorbitant prices and delays) by the use of Interledger Protocol to attain Internet of Values .
Interledger protocol is a protocol used for payments across payment networks. The protocol connects ledgers from two different banks, thereby removing intermediaries and central authorities from the system. It promises to reduce costs and the time required to process cross-border transactions. It is used by Ripple Labs to connect bank systems across borders in its products.<
Source
Contrary to popular belief, companies which offer cross border transfer services such as Dwolla,Venmo,Paypal etc require banks to actualise money transfer .Banks and payment providers integrated on the Ripple ecosystem makes use of Ripple's digital asset,XPR to achieve easier value transfer seen in the images below .
Source: Value transfer with Ripple
Ultimately,Ripple achieves a seamless transfer of value by reducing the number of links/intermediaries hence,reducing costs while maintaining a high level of operational efficiency.
HOW DOES FUSION ATTAIN IOV*?
| Fusion is a platform which breaks the limitation of use of values within the sphere of its ecosystem, thus allowing cross platform compatibility while bringing to us,the Internet of Values. |  (pic source: www.fusion.org) |
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To perfectly understand this,let us draw an interesting analogy using Tron (a blockchain-based protocol for a free content entertainment system, allowing each user to freely publish, store and own data) ,it's token used for transactions in its ecosystem, TRX and that of SNT ,a token for Status (a blockchain-based messaging platform) .Both tokens are used for transactions within their ecosystems and cannot be used interchangeably .What Fusion aims to do is to enable token compatibility in any ecosystem outside of theirs.
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Source
A very important technology envisaged by Fusion is the Distributed Control Rights Management (DCRM).The distributed generation allows private keys to be generated for tokens by the use of multiple nodes in a distributed manner.It also allows for the control of these private keys and enables "crytoasset mapping" which allows both tokens to be cross-platform compatible.
SIMILARITIES BETWEEN FUSION AND RIPPLE
- They both achieve ease of value transfer.
- They reduce transaction costs .
- They enable interoperability of value.
- They are both built on blockchain technology.
DIFFERENCES BTWEEN FUSION AND RIPPLE
- Ripple leverages the Interledger Protocol while Fusion makes use of its Distributed Control Rights Management to carry out mapping of tokens.
- Ripple's digital asset is the XRP while Fusion makes use of FSN .
- Ripple's operation is centred upon cross border value transfers while that of Fusion is centred upon cross-platform token compatibility .
- While Ripple makes use of the RCPA algorithm,Fusion banks on the SHA-256 (Secure Hash Algorithm) in generating an almost unique 256-bit key .
CONCLUSION
The manner in which information transfer could be carried out easily has duly served as a motivation and as a challenge to the crypto world. Thanks to Ripple and Fusion,value exchange has become cheaper,easier and effective .Today, the "Internet of Values" long craved for by banks,payment providers,crypto investors, developers and all other participants in ecosystems has ultimately become a walk in the park .
- ) IOV - stands for "Internet of Values".
SUPPORT @Danielwrites
| My own comment: Daniel is an excellent writer with such a potential. He is one of Nigerian students trying to find a way to make some funds for a living on this platform. Just like many of us do. | (pic source: info.umkc.edu) |
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If you enjoyed this post then visit his profile @DanielWrites and show your support by engaging with him and leaving valuable comments on his posts.
You can also support Daniel by upvoting this post within first 24h.
All rewards from this post collected within that time will be transferred to him :)
Yours,
Piotr
REFERENCES
N.B All image sources are indicated as footers and where not indicated,are products of the author.
LEARN MORE
Click here to view a brief comparison of both projects.
Visit Fusion website and Ripple website to learn more .
Oh, excellent comparison between Ripple and Fusion indeed! @crypto.piotr
Thanks @wilhb81
I agree. This is excellent comparison writen by @danielwrites. Visit his profile and show your support if you have a chance :)
Help me grow our little community
Yours,
Piotr
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STOPTo support your work, I also upvoted your post!
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This is a nice comparison. I remember writing a fusion contest sponsored by @originalworks. Fact is fusion is a great initiative. But you betcha ass that I'm checking Ripple out. BTW, @crypto.piotr, yet to see ur comments on my crypto posts, I guess ya busy or something
If you took a look at Daniels post it was 12 days ago so I’m sure he’s busy.
hi @okipeter
Indeed this week has been very busy. I needed to organize over 15 different judges, communicate with them. Now Im collecting their votes on best entries and next week I will spent few days reading each one of entry myself.
Thank you for your patience buddy,
Yours
Piotr
hi @okipeter,
Indeed past few days were crazy. Organizing almost 20 judges without prior experience turned out to be very time consuming. I will be reading all entries myself this week :)
Yours
Piotr
I noticed that you're very busy. I must confess, organizing a contest isn't all that easy.
thanks for patience @okipeter :)
you're very responsive which is absolutely great and steemit community surely will benefit by having you here.
if you would ever like to keep in touch and support each other closer, then drop me a message [email protected]. This will allow us to communicate easier.
No pressure of course,
Cheers, Piotr
This is a very good comparison between Fusion and Ripple. I never knew they could actually be compared like this. I think I will have to learn more about these two asset 😁. Thanks for sharing this great post and I have learnt alot from this.
I also wasn't sure if those 2 projects can be compared and Daniel @danielwrites helped me a lot with learning about those 2 projects.
Thx for comment and your constant support mate :)
Yours,
Piotr
You are very welcome 💗😁🙌
ReSteemed and I will give him a follow! I think it’s excellent that people in the African countries are taking this information, digesting it and envisioning real world applications. I hope that we can revolutionize the way money is handled on the continent and hopefully get crypto to be the #1 currency that’s used there to break them from the stranglehold that the fiat governments have imposed upon them.
hi @cmplxty, I also hope that we can witness financial revolution within our lifetime.
Thank you for the info I am trying to learn as much as I can about crypto
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Nice of you to bring light to a great work by some one else.
I haven't looked into Fusion much, but this was a great explanation--very thorough!
Thx @hatu for your kind comment. Sharing someone's else work on my profile is just another little experiment of mine. Trying to find ways of engaging with community and testing which ones are time effective and bringing solid results.
Ecxellent post. thanks for share, good luck for next week!
Greetings ; )
IOT and IOV thats the future and in my opinion Fusion in this comparison is better. I dont like Ripple :P