The industry is in the limelight with incredible levels of crypto energy consumption headlines and in-depth research, especially in some blockchains. Cryptography’s carbon dioxide emissions could continue to accelerate as cryptography becomes more and more mainstream and new applications that utilize this technology are gaining in popularity. The issue of the environmental impact of cryptocurrencies is more important than ever, and Ripple is on a mission to provide an answer.
In a just-published report, the world’s top climate scientists say “now or never” in the human race to prevent global warming from exceeding the target of 1.5 ° C. Carbon emissions and slowly rising global temperatures.
Climate change is already having a profound impact on the well-being of the planet and humanity, harming environmental ecosystems and expelling millions of people due to rising sea levels and natural disasters. The transition from fossil fuels to a more sustainable future is a costly endeavor, but research shows that global warming could cost the global economy $ 23 trillion by 2050. For $ 2 trillion a year, hundreds of billions of additional costs will be incurred in the form of disaster relief, insurance and more.
Sustainability is both a financial investment and a human investment. It is important that cryptocurrencies and blockchains are on the most environmentally friendly path for the longevity of the planet, industry and the lives that this technology touches.
Promotion of more sustainable cryptography
Governments around the world are aware of how much carbon dioxide emissions are for cryptocurrencies on the energy-intensive blockchain. In March, President Biden signed a presidential directive outlining responsible development of digital assets, including a call to “mitigate the negative effects on the climate.” And other regions like Scandinavia are looking for alternative energy sources to power highly consumer cryptocurrency mining operations.
Raising awareness of the potential benefits of this technology to enable further adoption is just as important as distinguishing between blockchain and their various levels of energy consumption. Both Tesla and Hummer can move from point A to point B, but their carbon emissions are very different. The same idea needs to be applied to blockchain and today’s usage.
For example, low-energy blockchains are actually very efficient in design, which can actually reduce their environmental impact and improve the sustainability of traditional payment media. Using cryptography for payments can be more sustainable than cash — it contributes to deforestation, water loss, and pollution. Alternative cash solutions such as CBDC and Stablecoin on sustainable blockchains may also be more environmentally friendly than existing payment systems, and countries around the world are exploring and piloting such digital currency projects. is increasing.
New crypto use cases can help awareness in the fight against climate change
This effort will continue to evolve as new demands and technologies emerge. For example, the rapid and remarkable popularity of non-fungible tokens (NFTs) has allowed us to further highlight the negative impact of the Proof of Work blockchain on climate. The transactions required to create, bid and trade NFTs on these blockchains can be very energy consuming.
While some are using NFTs as a creative tool to defend sustainability through use cases such as environmental art and tokenization of carbon credits, other artists and collectors are talking about the impact of NFTs on climate. A loud criticism, one recent protest led to the cancellation of Artstation’s planned NFT launch of the platform.
But it’s important for artists, environmentalists, developers, and entrepreneurs to all recognize that NFTs aren’t energy-intensive in nature. Energy usage depends on the underlying blockchain. Some, like XRP Ledger, are carbon-neutral and use very little energy.
These members are interested in sustainability. A recent study of the New Value report demonstrates that sustainability is moving towards a central stage in NFTs, with about three-quarters of consumers worldwide prefer and develop sustainable NFTs. Two-thirds say organizations are likely to choose sustainable blockchains.
At the forefront of cryptographic sustainability
Ripple has been committed to sustainability since the company was founded and our design and development choices were made through this lens. That’s why it supports open source decentralized XRPL and uses its sustainable native digital asset XRP as the underlying cryptographic technology for payment solutions.
XRPL uses the federation consensus protocol to manage transactions more efficiently and minimizes the energy consumption required for transactions in the XRP ledger. XRPL is also the first major global blockchain to be carbon neutral and is a milestone achieved in October 2020. In addition, Native Digital Asset XRP does not require mining, further reducing the overall carbon footprint of ledger-based technology.
As the first major blockchain company to promise zero carbon nets by 2030, Ripple continues to build and defend a network of enthusiastic partners with a shared commitment to sustainability.
We believe that the entire crypto industry can lead the responsibility for a cleaner and cleaner future for blockchain. Key stakeholders in the industry need to work together through initiatives such as the Crypto Climate Accord and the World Economic Forum’s Crypto Impact & Sustainability Accelerator (CISA). Both are founding members of Ripple.
The industry is also about the truth about cryptocurrencies and blockchain energy use, and the benefits of moving to proven, inherently less energy-intensive mechanisms such as federation consensus and proof of stake, consumers, businesses and artists. It is necessary to maintain transparency in educating. And you can apply that expertise, funding, and creativity to turn the tide.
Together, we have the opportunity and obligation to make a difference and help protect the celebration of Earth Day for future generations.
Join Ripple and make cryptocurrency and blockchain sustainability an industry priority.