While talking about cryptocurrency’s sustainability issue in a blog post, the Chief Technology Officer (CTO) at Ripple David Schwartz has said that the fourth-ranked digital currency XRP is an inherently green currency unlike other top cryptocurrencies such as the leading digital coin Bitcoin (BTC) and the second-ranked currency Ethereum (ETH).
XRP’s non-minable nature makes it environmentally friendly
Ripple CTO David Schwartz has shed a light on the relationship of cryptocurrency with the environment in a blog post published recently and also highlighted the difference between non-minable cryptocurrencies such as XRP and minable digital currencies such as Bitcoin and Ethereum. David Schwartz is of the view that the non-minable nature of Ripple’s XRP makes it an environmental-friendly cryptocurrency.
Currently on this planet, according to Ripple CTO, the consumption and production of energy is a critical issue and it has become very important to address this issue. It is vital to save energy for the next generations by reducing energy consumption. The crypto industry is likely to implement various practices to ensure the protection of the environment in this regard.
Taking on this issue, David stated that Ripple’s XRP is a green currency in this case as it is a non-minable currency while on the other hand Bitcoin and Ethereum are minable ones and consume a huge amount of energy during the mining process.
Proof-of-Work Vs Consensus Mechanism
While comparing Ripple’s XRP cryptocurrency with that of Bitcoin and Ethereum, Ripple CTO drew a comparison between the Proof-of-Work mechanism and the Consensus mechanism.
Both Bitcoin (BTC) and Ethereum (ETH) use the Proof-of-Work mechanism in order to confirm transactions and for mining purposes. While on the other hand, as a non-minable cryptocurrency, Ripple makes use of the Consensus mechanism on the XRP Ledger in order to validate transactions there.
Darlene Morales
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