🔴 The XRP Ledger (XRPL) competes with Ethereum's (L2) layer two solutions for the final settlement speed of transactions.
XRPL is characterized by very fast and deterministic settlement within 3–5 seconds with almost no fees, making it ideal for payments and instant transfers.
In contrast, L2 networks provide high flexibility and smart contract operation, but they suffer from delays in final settlement due to their reliance on Ethereum.
Institutional interest is increasing in solutions with fast settlement to reduce risks and delays.
XRPL excels in speed and simplicity, while L2 excels in diversity and decentralized applications.
By 2026, XRPL will remain a leader in settlement speed, while L2 continues to be a primary option for complex applications.
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