Ripple's CTO David Schwartz criticized Bitcoin in a new blog post claiming that the XRP consensus mechanism is more environmentally friendly than BTC's Proof of Work (POW), which 'consumes a lot of energy and ultimately damages the environment. ' XRP, according to Ripple, is a cryptocurrency created with sustainability in mind.
Schwartz said creating money, whether fiduciary or not, is not green. As such, creating money has long-term consequences in nature.
According to the CTO, the cryptocurrency was meant to avoid these environmental consequences, however, it believes that digital tokens created through proof of work is a highly energy-intensive process. He cited Bitcoin, which uses PoW mining to validate transactions and create and distribute new coins. He said that as miners compete to solve complex computational puzzles that become more difficult over time, the energy required to solve such problems will also increase.
Schwartz claimed that an application-specific integrated circuit device or ASIC could have an environmental cost of $ 1,500 per year, while more powerful mining rigs can cost up to $ 6,000 per year.
You don't need an explanation of where Schwartz is leading with these "attacks" against Bitcoin. Specifically, he postulates that the Consensus Mechanism, a procedure where a common agreement is formed around which transactions could be executed in order, does not have the same environmental impact as proof-of-work mining.
Schwartz claimed that the XRP Ledger (XRPL) has a unique consensus mechanism that consumes negligible power, leading to lower rates. This ledger uses a distributed agreement protocol to establish consensus around a particular transaction. Simply put, Schwartz argues that XRP solves the double-spending problem without the need for PoW.
Another reason why Schwartz said XRP is sustainable is that all XRP already exists. "It never takes unsustainable mining practices or additional energy to produce more, unlike other digital assets like Bitcoin and Ethereum" he added.
As further proof of XRP sustainability, Ripple's CTO said the energy required for 1 million XRP transactions could already power 79,000 light bulbs, while 1 million BTC transactions could power 4.51 light bulbs, implying Bitcoin's energy intensity .
"Power consumption is a critical side effect of blockchain, and as we see increased adoption and use of this new technology across the global financial system, it is an issue that needs to be addressed," David Schwartz, CTO of Ripple.
While it is true that POW consumes more resources and is more expensive, what remains is that several Bitcoin mining operations have already transitioned to the use of renewable energy. In a study done last year, analytics firm Coinshares said 74% of Bitcoin's mining operations are now powered by renewable energy.
Furthermore, others, such as Bitcoin advocate Vijay Boyapati, argue that the difficulty of mining, which ultimately leads to higher fees, is an important part of what makes money valuable. In his thesis "Bullish Case for Bitcoin", he thinks that something turns into money, it must first be valuable before it can become a means of payment.
“A network with low rates is a network with little security and prone to external censorship. Those who promote the low rates of Bitcoin alternatives are unknowingly describing the weakness of these so-called alternative currencies, ”he said.