The arrival on the scene of cryptocurrency was at first a mystery to many, then a curiosity. Now, however, as knowledge about it grows and devices like the XRP Crypto Card enable investors to turn crypto into an increasingly regular method of payment.
As crypto has emerged, however, one major and contemporary concern has arisen; how, in the 21st century, can an innovation flourish if in doing so it has a negative environmental impact? As a follow-up, one may ask if any new technology is improving matters.
These are legitimate questions, bearing in mind the way technology like electric vehicles, wind and solar energy are playing their role in decarbonisation, while other measures such as smart technology that turns off devices when not in use are helping reduce energy waste.
Crypto Mining And Carbon Footprints
By contrast, a major worry has arisen over the energy use required by crypto, with ‘mining’ being very energy intensive, with around half of that coming from fossil fuels as well. As Science Daily noted last year, if Bitcoin was a country, it would have the 27th highest carbon footprint in the world.
For that reason, it is important to ask whether the crypto sector is developing any new technology of its own that is better for the environment. If we can produce energy with wind, waves and sunshine instead of oil and charge car batteries instead of burning petroleum, can somebody come up with a crypto system that is more energy-efficient?
The good news is that the XRP system is exactly that. An assessment by Tokenwatch has highlighted the issue and why the XRP system is so much greener than its rivals. At the heart of this is the use of the Ripple Protocol Consensus Algorithm (RPCA).
RPCA works differently from the Proof of Work (PoW) mechanism used by Bitcoin, which has become so notorious for its high energy consumption. While it still uses Blockchain technology, it has a more efficient and slick way of operating, which makes crucial processes faster and simpler.
A Byzantine Explanation
As Geeks for Geeks explains, what it does is find a better way of tackling what has been termed the ‘Byzantine Generals Problem’.
This is based on the idea that an army needs a consensus among its generals to attack and needs messengers to travel between them to pass information and get a consensus. But some generals will not want to attack, some are corrupt and want the attack to fail and not all the messengers can be relied on.
By analogy, this situation is replicated in a Blockchain as different nodes take on the roles of generals and the RPCA is the lead strategist and needs the generals to reach a consensus. The RPCA asks the generals which other generals they trust, which creates a unique node list, or UNL.
This system has a dissent tolerance of 20 per cent (that proportion of generals may be unwilling or corrupt), so if 80 per cent of generals or more in the UNL agree, the consensus is reached.
As a backup, if there is a UNL that emerges made up mainly of dissenters, this creates two UNLs with opposed views. But to make them come to the same consensus instead of different ones, the RPCA strategist imposes a second rule that they have to have at least 20 per cent of the members in common with the other UNLs.
This way, no UNL can be formed that creates a critical mass (80 per cent plus) able to stand in the way of the majority, so the consensus would be reached, solving this (both literal and metaphorical) Byzantine problem.
Critically, because this system works swiftly and more efficiently than the Bitcoin PoW system or the Ethereum Proof of Stake (or PoS) system, less energy is used in the process.
A Green Energy Commitment
At the same time, one of the facts noted by Tokenwatch is that XRP is also committed to using more renewable energy where it can, so it has two ways of burning up less fossil fuel in its operations.
For many XRP users, this will come as great news. After all, if Crypto is the way of the future, it makes no sense that it should operate in a way that serves to jeopardise the future.
Of course, the impact that crypto has on climate change is only a part of a wider whole; indeed, if you are someone who travels a lot and wants to use a crypto card overseas, you may be all too aware of your carbon footprint as you fly.
Nonetheless, tackling the problem and adopting more energy-efficient methods of operating is everybody’s responsibility – and every bit helps.