Ripple Labs has developed next-generation blockchain technology that holds the promise to transform the cryptocurrency sector through energy-efficient protocols. This initiative supports the company’s commitment made in 2020 to achieve carbon neutrality by 2030.
What is Ripple Labs’ New Blockchain Technology?
The RippleNet Infinity platform introduced by the company aims to enhance cryptocurrency transactions by offering improved security, faster processing times, and increased energy efficiency, as highlighted by CoinTrust in February.
Ripple utilizes a digital asset known as XRP, with transactions documented on its decentralized XRP Ledger. Unlike traditional crypto mining—which involves solving complex computational issues to validate transactions—this platform forgoes those operations, leading to significantly lower energy consumption, as noted by the company and explained by outlets like Forbes.
Ripple claims that its XRP Ledger is “the first major global blockchain to be carbon-neutral,” a milestone it reached in October 2020. While independent verification of this claim is lacking, being carbon-neutral entails that a system eliminates or offsets as much carbon as it produces.
The company asserts that its Federated Consensus protocol contributes to reduced energy use compared to other platforms. According to CoinTrust, RippleNet Infinity is capable of efficiently processing up to 100,000 transactions per second.
Why is It So Important?
Despite the transformative impacts of cryptocurrencies on digital transactions, platforms like Bitcoin have become notorious for their high electricity consumption. Bitcoin relies on a proof-of-work protocol that necessitates energy-intensive mining activities to verify transactions, as pointed out by Investopedia.
Some cryptocurrency mining operations, which may operate illegally in certain regions, are placing additional strains on local electricity supplies. Moreover, these setups demand considerable cooling for data centers, contributing to their overall resource consumption.
The U.S. Energy Information Administration estimates that cryptocurrency mining operations in the country account for up to 2.3% of total electricity usage annually. “We intend to continue analyzing the energy implications of cryptocurrency mining in the U.S.,” stated former EIA Administrator Joe DeCarolis in a 2024 press release.
How RippleNet Infinity Could Make a Difference
In 2022, President Biden issued an executive order focused on advancing responsible digital asset systems while aiming to minimize adverse climate effects—an objective that aligns with RippleNet Infinity’s mission.
Ripple Labs emphasized the need to evaluate blockchains based on their carbon emissions, drawing an analogy between a Tesla and a Hummer, which both serve similar functions but have vastly different environmental impacts.
In terms of energy consumption, a report from The Fintech Times in 2021 identified Ripple’s XRP as the least energy-intensive among the top seven cryptocurrencies assessed, consuming only 0.00112% of the energy used in Bitcoin transactions.
As the first significant blockchain entity to pledge carbon neutrality by 2030, Ripple continues to foster a network of partners dedicated to sustainability, as articulated by the company in 2022.
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