Ripple’s Energy-Efficient Blockchain: A Greener Future for Cryptocurrency?
Cryptocurrency mining setups have been energy-intensive to date, in some places putting a strain on the electricity grid.
Ripple Labs is working on a new blockchain technology designed to make crypto transactions more sustainable. This technology, RippleNet Infinity, promises increased security, faster processing speeds, and, crucially, greater energy efficiency. The company’s commitment to carbon net-zero by 2030 underscores this focus.
At the core of Ripple’s efforts is the digital asset XRP, with transactions recorded on its decentralized XRP Ledger. Unlike Bitcoin and other cryptocurrencies, the XRP Ledger does not rely on energy-intensive mining operations to validate transactions. This difference is key to Ripple’s sustainability claims.
Ripple has stated that its XRP Ledger was the first major global blockchain to achieve carbon neutrality, a milestone reached in October 2020. While The Cool Down was unable to independently verify this claim, the implication is that Ripple removes or mitigates as much carbon from the atmosphere as it emits.
According to a February report by CoinTrust, RippleNet Infinity can efficiently manage up to 100,000 transactions per second. This advancement is particularly significant given the large amounts of electricity consumed by some cryptocurrency platforms.
The Energy Problem in Cryptocurrency
The increasing energy demands of cryptocurrency mining pose a significant challenge. Platforms like Bitcoin use a proof-of-work protocol that requires substantial computational power to validate transactions, leading to high energy consumption. As Investopedia notes, the electricity used by such mining operations has, in some areas, strained the power grid.
In addition to the mining operations, the cooling systems required by data centers further elevate resource consumption. The U.S. Energy Information Administration estimates that domestic cryptocurrency mining now accounts for up to 2.3% of the nation’s total electricity use. Former EIA Administrator Joe DeCarolis noted in a 2024 press release, “We intend to continue to analyze and write about the energy implications of cryptocurrency mining activities in the United States.” The agency plans to focus on the evolving energy demands of cryptocurrency mining, identify high-growth geographic areas, and quantify the sources of electricity used to meet this demand.
RippleNet Infinity and a Sustainable Future
RippleNet Infinity aligns with the goals of President Joe Biden’s 2022 executive order that supports responsible digital asset development and the reduction of climate impacts.
In 2022, Ripple Labs explained its approach: “A Tesla and a Hummer can both get you from point A to point B, but the carbon emissions from each are vastly different. The same thinking should be applied to blockchains and how they are used today.”
The Fintech Times cited a 2021 report that rated Ripple’s XRP as the least energy-intensive of the seven leading crypto coins assessed, using just 0.00112% of the energy needed for Bitcoin transactions.
As the first major blockchain company to commit to carbon net-zero by 2030, Ripple is working to create a network of partners dedicated to sustainability, according to a 2022 statement from Ripple Labs.
