In recent months, there has been a lot of focus on Bitcoin’s alarming environmental impact, and while attempts are being made to reduce the cryptocurrency’s carbon footprint, some investors are abandoning the cryptocurrency in favor of greener alternatives.
Bitcoin uses a ‘Proof of Work’ system to create a single token, it necessitates a massive number of calculations (and consequently computing power). Cryptocurrencies that use a ‘Proof of Storage’ or ‘Proof of Stake’ system, as well as currencies that use a technique called block-lattice, which does not involve mining, use significantly less energy.
As a result, green cryptocurrencies are becoming increasingly popular as a result of environmental concerns. But what’s the fuss about green cryptocurrencies? Why should you buy Ripple as an environmentally friendly alternative? Read on to find out about all these and more.
What Are Green Cryptocurrencies?
Green cryptocurrencies are decentralized and environmentally friendly open-source cryptocurrency that provides investors with a private and clear exchange for advanced cash services. Green coins have recently become more widely accepted around the world. We’ll go over the reasons in more detail below.
Green cryptocurrencies, also called green coins, are distributed on a public blockchain, which protects the identity of the sender, recipient, and exchange channel. The coin has a decentralized open-source foundation that is supported by environmentally friendly green networks, ensuring that the planet’s future is not jeopardized
Green cryptocurrencies are largely constructed on a green foundation that provides an environmentally beneficial mining process, with its mining, sale, and purchases widely regarded as environmentally benign, therefore assisting in the fight against today’s major concerns, such as global climate change.
You May Also Read About: Popular Cryptocurrency Exchanges
The green cryptocurrencies frameworks are based on proof of stake rather than proof of work on expected clients and peer-to-peer connections through networks, and they provide an environmentally friendly, decentralized, blockchain-based support, as well as the execution of rules and principles set up to work together for the greater good of the world at large.
Proof of stake provides a different approach to security by establishing trust in a more traditional medium of exchange: money. It is substantially more energy efficient because the basis of proof of stake does not require any additional energy to verify trustworthiness. Unlike proof of work, which necessitates specialized processing hardware like high-end graphics cards, the proof of stake protocol may be executed on a laptop. The nodes are virtual areas rather than actual devices.
Why Ripple (XRP) Is One of The Greenest Cryptocurrencies
While XRP hasn’t escaped the recent Tesla-inspired sell-off, it hasn’t taken as much of a hit as its main rivals, falling 5.5 percent in the last seven days vs a 22 percent decrease for BTC and a 10% drop for ETH. Its relatively gentle decrease may be attributable in part to its lower energy requirements, which should have a lower environmental impact.
Crypto environmental researchers have found that XRP was the least energy-intensive of the seven major coins they examined. This means that investors can buy Ripple without any fear or environmental concern. Ripple uses only 0.0079 kWh of electricity per transaction, which is only 0.00112 percent of the 707-kWh used by Bitcoin. To put it another way, Bitcoin’s per-transaction energy consumption is 8,949,267 percent higher than Ripple’s.
This conclusion is backed up by other data. According to Ripple’s own data from 2019, it used 474,000 kWh per year, while Bitcoin used 57.09 billion kWh and Ethereum used 2.57 billion kWh. In a blog post dated July 2020, Ripple calculated that its network could power 79,000 lightbulb hours for every million, compared to 4.51 billion lightbulb hours for a million Bitcoin transactions, making Ripple “57,000x more efficient.”
Ripple’s eco-friendliness is due to the fact that it does not use the proof-of-work consensus mechanism used by Bitcoin (or Ethereum). Instead, it employs a “distributed agreement protocol,” which needs a supermajority of nodes to agree on a transaction’s confirmation. This is one reason many investors are choosing to buy Ripple. While some argue that this makes Ripple less decentralized and safer than Bitcoin, it also means that Ripple can scale well beyond Bitcoin while using less energy.
Ripple, in fact, announced early in 2021 that it would achieve net-zero carbon emissions by 2030. This doesn’t imply it wouldn’t use any energy; it only means that whatever energy it will need to come from renewable sources. This is more good news for crypto environment activists and investors who can now buy Ripple as one of the greenest cryptos in the world.