The following table compares different payment systems. No comparison can be exhaustive, as payment systems are complex tecnologies whose utility depends on many factors including the individuals using them. You may also read the FAQ section Ripple compared to...
|
Payment System |
Obligation Issuer |
Unit of value |
Cost |
Benefit |
Credit Network Type |
|
Direct, no intermediary | |||||
|
Community members |
Only personal goods and services |
Can only use with very narrow set of products and partners |
Easy, free |
No credit needed | |
|
Community members |
Commodity (metal, cigarettes, etc.) |
Commodity |
Easy, standardized |
No credit needed | |
|
Centralized: one central intermediay | |||||
|
Community members |
Multiple |
Can only be used with very narrow set of products and partners Credit, multiple |
Easy, free |
 | |
|
Typically national government |
Typically government currency |
Inflation |
Anonymous, widely accepted |
| |
|
Bank, often backed by government insurance |
Typically government currency |
Inflation, fees, etc. |
Convenient, widely accepted, brick-and-mortar branches |
| |
|
Bank or other company |
Credit, typically government currency |
Merchant fees, interest, etc. |
Convenient, widely accepted |
| |
|
Company |
Multiple, typically government currency |
Merchant fees, inflation |
Convenient, widely accepted |
| |
|
Company |
Multiple, commodity |
Merchant fees, commodity |
Convenient, standardized |
| |
|
Community members |
Proof of work |
Computation |
Anonymous, open, decentralized |
| |
|
Community |
Arbitrary computation |
Computation |
Anonymous, open, decentralized |
| |
|
Network: Chain of intermediaries | |||||
|
Multiple |
Community-focused, efficient, open, decentralized |
 | |||
|
Community members |
Multiple |
Free |
Community-focused, efficient, open, decentralized |
 | |