By Solomon Odunayo
Ripple, the US-based cross-border payment behemoth, has recently elaborated on the reason why XRP, the third-largest cryptocurrency by market capitalization, is more sustainable than any other digital currencies such as Bitcoin (BTC) and Ethereum (ETH).
In an article published on 13th August 2020 titled “Ensuring That Our Digital Future Is a Sustainable One”, Ripple stressed the impact of cryptocurrency on electricity.
Ripple Describes the Level of Sustainability of Bitcoin (BTC)
In the exposition, Ripple showcased its belief that the continued investment in mining in the blockchain industry to produce many cryptocurrencies such as Bitcoin (BTC) and others alike, could continue to endanger the global environment.
According to Ripple, a single transaction of Bitcoin uses 700 KWh of electricity, which is a huge carbon footprint when considering a mere 0.044 KWh of electricity consumed in a single transaction using fiat currency. This implies that it would be difficult for Bitcoin to gain adoption as a means of payment.
However, without considering electricity consumption, Ripple believes that paper money contributes more damage to the global environment than Bitcoin, citing deforestation, eutrophication, and photochemical ozone creation that comes from its production and disposal.
The payment firm further stated that cryptocurrency can be a sustainable payment option because they are designed in different ways.
Ripple noted:
“XRP is fundamentally a much more sustainable asset than the likes of Bitcoin or Ethereum, only consuming a scant 0.0079 KWh of electricity per transaction.”
XRP Is More Sustainable Than Other Cryptocurrencies
According to Ripple, the major reason why XRP is so much sustainable than other cryptocurrencies is that all XRP tokens currently exists. This implies that no additional energy is required to produce more of this digital asset, unlike Bitcoin (BTC) and Ethereum (ETH) that continues producing more via proof-of-work (PoW) mining, with increased energy consumption.
The payment firm then pointed out that the technology behind the XRP Ledger is aiding the cryptocurrency to settle within a few seconds without consuming huge energy.
In conclusion, Ripple stated that more sustainable blockchains stand the chance to encourage further adoption of cryptocurrency such as XRP.
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