A Greener Future for Crypto and Blockchain
Headlines and deep dives into the staggering levels of corrupt energy consumption - especially among some blockchains - have made the industry stand out. As crypto is becoming more mainstream and new applications using this technology are gaining popularity, there is a danger of accelerating the carbon footprint of crypto. The question of the environmental effect of cryptocurrency has in no way been more essential, and Ripple is on a assignment to offer answers.
In a recent report, the world's top climate scientists say that in the fight against humanity to prevent global warming from exceeding the target of 1.5 degrees Celsius, "it is now or never". Carbon emissions and slowly growing global temperatures.
Climate change has already had serious consequences for the well-being of both the planet and humanity, for damaging the ecosystem and for displacing millions of people due to rising sea levels and natural disasters. And while moving away from fossil fuels to a more sustainable future is a costly endeavor, studies estimate that global warming could cost the global economy $ 23T by 2050. The new federal budget for 2023 states that climate change could cause significant damage to the country's revenue. T2T each year with hundreds of billions in additional costs in the form of disaster relief, insurance and more.
Sustainability is both a economic funding and a human funding. It is imperative that the corrupt and blockchain take the greenest path to the longevity of the planet, industry and the lives affected by this technology.
Push for more sustainable crypto
Governments around the world are realizing the enormous carbon footprint for these cryptocurrencies on the energy antenna blockchain. In March, President Biden signed an executive order outlining responsible development of digital assets, including a call for "mitigation of adverse weather effects." And other areas, such as Scandinavia, are looking for alternative energy sources to power highly usable cryptocurrencies.
Increasing awareness of the potential benefits of this technology to make it more adaptable is as important as differentiating between blockchains and their different levels of energy consumption. A Tesla and a Hummer can take you from point A to point B, but carbon emissions are very different from each. The same thinking applies to blockchains and how they are used today.
For example, low-energy blockchains are actually naturally efficient in terms of design, they can actually reduce environmental impact and improve the sustainability of legacy payment sources. Using crypto for payments can be more sustainable than cash - which contributes to deforestation, water loss and pollution. Alternative cash solutions such as CBDCs or stablecoins on sustainable blockchain also have the potential to be more environmentally friendly than existing payment systems, and we are seeing more countries around the world discover and pilot such digital currency projects.
New corruption cases could help raise awareness in the fight against climate change.
This effort will continue to evolve as new requirements and technologies emerge. For example, the rapid and significant growth in the popularity of non-fungible tokens (NFTs) has helped to further highlight the negative effects of proof-of-work blockchains on the climate. The transactions required for NFTs to mint, bid and trade on these blockchains can be extremely energetic.
While some are using NFTs as a creative tool to promote sustainability through utilization issues such as environmental art and tokenizing carbon credits, other artists and collectors are vocal critics of NFTs' climate results. With a recent outburst, the artist's planned NFT has been canceled. Platform launch.
But it is important that artists, environmentalists, developers and business people all recognize that NFTs do not naturally contain energy. Energy consumption depends on the basic blockchain, and XRP lasers are those that are carbon neutral and use very little energy.
These ingredients care about sustainability. Research in our recently published New Value Report confirms the move toward the Center for Sustainability in NFTs, with nearly three-quarters of global consumers prefer sustainable NFTs and two-thirds of developers say their organization Sustainable blockchain is more likely to be chosen.
In the face of crypto sustainability
Ripple has been committed to sustainability since the company was founded, and our design and development choices have been made through this lens. That's why we support open source, decentralized XRPL and use its sustainable, local digital asset XRP as the primary crypto technology to settle our payments.
XRPL uses the FedEx Consensus Protocol to manage transactions more efficiently, which helps reduce the energy consumption required for transactions on the XRP ledger. XRPL was also the first major global blockchain to become carbon neutral, a milestone reached in October 2020. And since its local digital asset, XRP, does not require mining, it further reduces the overall carbon footprint of ledger technologies.
As the first major blockchain company to commit to zero carbon emissions by 2030, Ripple continues to create and champion a network of partners committed to sustainability.
We believe that the corrupt industry as a whole can take charge of a green, clean future for the blockchain. The industry's key stakeholders should be brought together through efforts such as the Crypto Climate Accord and the World Economic Forum's Crypto Impact and Sustainability Accelerator (CISA) - both of which Ripple is a founding member .
The industry needs to be transparent in order to inform consumers, businesses and artists about the truth about the use of corrupt and blockchain energy, and the transition to proven, naturally low-energy mechanisms such as Federated Consensus or Proof of Stack. Benefits of And it can use its skills, financing and creativity to help turn the tide.