The Q2 2020 saw total XRP sales to be $32.55 million as compared to the previous quarters. Ripple is playing a “responsible role” in the liquidity process and the crypto market. It shows that XRP is beating the market competition, but Ripple stated it to be a sustainable cryptocurrency. It is also rated as the “green cryptocurrency” than Ethereum and Bitcoin. Bitcoin is a high energy consumption cryptocurrency because of its necessity for mining.
But, XRP by Ripple Labs is a sustainable and energy-efficient cryptocurrency. For mining over Ethereum and Bitcoin platform, the maximum amount of energy ranging up to 77,207 TWh is used. Even the powerful mining over these platforms can cost up to $6,000 per year. It leads to an increase in the carbon footprint by the Bitcoin and Ethereum.
Let us now see a few pointers that showcase Ripple XRP to be the ‘green cryptocurrency.
Ripple XRP- An Environment-Friendly Cryptocurrency
Energy consumption is the main issue that needs to address since cryptocurrencies like Bitcoin and Ethereum consume more energy, which can be the same as that of countries like Chile. The carbon footprint of these cryptocurrencies is compared to that of New Zealand, and electronic waste generated is the same as that of Luxembourg. The Ripple’s CEO cited and was shocked that energy consumed and increased carbon footprint isn’t high on the environmentalist agenda.
This calls for quick action to reduce energy consumption and make the cryptocurrency mining eco-friendly. Ripple’s XRP is stated to be a sustainable cryptocurrency because it is said to possess enough supply that is otherwise produced through mining. Some of the other factors that make XRP a ‘green cryptocurrency’ are:
- XRP coins help with faster, seamless, and smooth transactions. It is an open-source, decentralized cryptographic ledger that is powered by peer-to-peer servers. But, as the supply already exists for XRP, there is no need to do additional mining or create energy. The only energy required here is to process the crypto transactions.
- All Blockchain platforms are not made equally, so one platform uses more energy and may use less energy. Like, 1 million transactions in XRP could power 79,000 lightbulb hours, and Bitcoin’s 1 million transactions can power 4.51 billion lightbulb hours. It shows that XRP is 57,000 times more eco-friendly than Ethereum and Bitcoin platforms.
- Moreover, XRP runs on a distinct mechanism that is RPCA or Ripple Protocol Consensus Algorithm. It averts double spending on mining and ledger work, which ultimately means less consumption of energy.
Bitcoin Mining is carried out by millions of users across the globe. But, the question is- it worth mining it in 2020? Well, the energy consumption is higher in Bitcoin and Ethereum, leading to energy-based problems. However, Ripple XRP is already having enough supply, so this cryptocurrency will not require more energy. Ripple states that XRP is the green form of cryptocurrency, or this is one of the environmental-friendly cryptocurrencies. To sustain the environment and remove carbon footprint, it is important to use green cryptocurrency like XRP.