Solana & XRPL Storm Onchain Credit—Will Ethereum Get Left Behind?
Blockchain's next frontier isn't DeFi or NFTs—it's your credit score. Solana and XRPL just flipped the script by launching onchain credit platforms, proving speed and low fees matter when banks come knocking. But where's Ethereum in this race?
The sleeping giant's gas fees and congestion might've finally met their match. While Vitalik's playground obsesses over layer-2 bandaids, SOL and XRP are eating their lunch where it counts: real-world financial infrastructure. TradFi won't adopt what it can't afford to use.
Here's the kicker: These platforms don't just replicate legacy credit systems—they bypass them entirely. No more begging centralized gatekeepers for a loan when your wallet history becomes your collateral. Unless ETH 3.0 magically appears, Wall Street might just pick the chains that actually work. (And no, 'decentralization theater' doesn't count as a USP.)
Blockchain Meets Credit Market
In the rapidly evolving digital age, finance and credit companies are taking advantage of blockchain technology’s speedy, cost-effective, and efficient framework to ensure secure value transfers.
The VERT systems have off-chain redundancy. It also connects to Brazil’s regulated financial framework to ensure being within legal measures. VERT has so far recorded more than 350 deals amounting to BRL 86 billion and is now scaling up a fresh system to accommodate credit deals above $500 million.
Ripple has been involved in the integration of XRPL. Silvio Pegado, who heads Ripple’s operations in LATAM, highlighted blockchain’s transforming Brazil’s agribusiness credit.
Where Does Ethereum Stand?
While XRPL drives VERT’s innovative platform, Ethereum, the cornerstone of decentralized finance (DeFi), has yet to make significant inroads in onchain credit space. Despite Ethereum’s robust smart contract ecosystem, its higher transaction costs and slower speed is limiting its appeal for large-scale applications like credit platforms.
While various finance firms are now actively exploring blockchain, such seatbacks of ethereum are raising questions about its slower adoption in the real-world use cases.
Also Read: Ripple CEO Warns of XRP Scams After Price Hits New ATH
