Ripple uses way lower energy compared to other cryptocurrencies using proof-of-work algorithms.
It is not news that Ripple uses less energy in processing transactions than other cryptocurrencies using the Proof-of-Work algorithm.
In a recent YouTube interview hosted on the Thinking Crypto channel, Monica Long, General Manager at RippleX, gave an estimate of the energy expenditure for the popular blockchain network Ripple.
According to Long, Ripple’s XRP Ledger (XRPL) is designed to be carbon neutral, which uses less energy in transaction processing.
“The amount of energy you need for XRPL transactions over the course of a year is equivalent to the energy expenditure of 50 US households, versus you look at a proof of work chain it’s something like 14, 15 million households,” Long added.
The General Manager at RippleX added that the low energy usage of Ripple’s XRPL has made the network attractive for carbon credit marketplaces and exchanges.
PoW Cryptocurrencies Heavily Scrutinize
Cryptocurrencies using the Proof-of-Work algorithm have come under heavy scrutiny in recent times, due to the large amount of energy required to process transactions.
Environmental activists have decried the negative impact of cryptocurrency mining on the global climate, with several pleas to the government to put an end to these operations.
Last year, Bitcoin mining was clamped down on by the Chinese government for several reasons, including the environmental implications of the operation.
China is not the only nation that has frowned against Bitcoin mining. Sweden and Norway also declared a full-scale ban on cryptocurrency mining because of the massive energy consumption of the operation.
Changing the PoW Code
With authorities clamping down on cryptocurrency mining, Ethereum, which originally started using the PoW algorithm, is making efforts to transition to a Proof-of-Stake (PoS) model, where new ETH will no longer be minted but will be rewarded to people who stake their funds.
Last month, Ripple’s chairman Chris Larsen pledged $5 million to sponsor campaigns that will change the Bitcoin code from a PoW algorithm to a PoS.
The campaign, which is tipped to commence this month, will mobilize several environmental groups to urge Bitcoin developers to adopt the PoS algorithm.