The debate between XRP and Bitcoin has been a long one as Ripple’s vision for the blockchain spanned far beyond the initial expectations of cryptocurrencies. Bitcoin continues to lead in terms of adoption, but that has not stopped comparisons of altcoins to the pioneer cryptocurrency. The latest comparison comes from Ripple President Monica Long, who has compared the energy conservation capabilities of both blockchains.
Ripple President Says XRP Ledger Is More Efficient
In a video posted on X (formerly Twitter), Ripple President Monica Long opined on the fact that the XRP Ledger is more energy efficient than Bitcoin. Long points out the fact that Bitcoin uses a Proof of Work mechanism, which has been proven to be energy-intensive, so much so that the likes of Ethereum and Cardano moved to a Proof of Stake mechanism to reduce their energy consumption.
As for the XRP Ledger, the Ripple President explains that it uses “its own flavor of a consensus algorithm”. This makes it consume way less energy than Bitcoin, which uses the Proof of Work mechanism. In fact, Long explains that the consensus algorithm used by XRP Ledger makes it 120,000 times more energy efficient than the Proof of Work mechanism used by Bitcoin.
Stretching further, the Ripple President also explains that the XRP Ledger’s consensus algorithm also makes it more energy efficient than cash. This is due to the underlying technology and how transactions are confirmed on the blockchain. Thus, making it greener than established forms of money like cash, and then Bitcoin itself, making it a more sustainable option.
Taking On The World Of Payments
Ripple continues to take strides in bringing the traditional finance world to the blockchain as it looks to make transactions more efficient. The most recent of the moves made by the crypto firm is the acquisition of the brokerage, clearing, and financing firm Hidden Road for $1.25 billion.
Ripple looks to bring a piece of the $3 trillion annual volume handled by Hidden Road to the XRP Ledger for faster and smoother settlements. This is also expected to boost XRP’s value in the market as it becomes an important part of this new volume, alongside Ripple’s RLUSD stablecoin.
Another important development for the crypto firm is the fact that, after four long years, the legal battle with the Securities and Exchange Commission (SEC) over the security status of XRP has finally come to an end. This marks the end of an era, allowing Ripple to move forward after being held back for years due to the lawsuit.
