If you keep up with the news, you will be familiar with the recent cryptocurrency craze that has been on the rise since the end of 2017. We saw nobodies turn into billionaires overnight when they cashed in on cryptocurrencies they had bought for fun many years ago. Although bitcoin is the most talked about cryptocurrency out there, other cryptocurrencies have also been developed and are being widely used. One such example of that is on the rise is XRP or Ripple.
What is Ripple and XRP?
Ripple is both a cryptocurrency and a platform for trading. The Ripple platform allows users to conduct cheap transactions worldwide. It has its own currency i.e XRP. Now let’s explain what XRP is in detail. Take the example of the joker card in a deck of cards. It can be used in place of any other card in the deck. XRP is basically a token that is used to transfer values over the Ripple Network. Let’s say you want to exchange dollars for euros, it can act as a dollar to dollars and can lessen the commission in a transfer. As of now the transaction cost on Ripple is $0.00001.
What is XRP used for?
Low commissions on currency exchange: Most currencies cannot be changed directly into one another. This means that the banks need a mediator currency for the exchange which is usually the USD. XRP essentially does the same thing at a much lower commission rate than the USD
Super fast transactions worldwide: The average transaction rate for XRP is 4 seconds as compared to the hours that bitcoin takes and the several days that regular banking systems take.
Customized payment ecosystems: Ripple Network allows users to create their own payment systems and their own currency. For example, a person can create a currency to buy and sell cupcakes among-st a set of bakers.
Now we move on to the more pressing question at hand:
Is XRP sustainable?
As we mentioned before, the Ripple Network allows for seamless and easy transactions between different parties across the globe. Every financial transaction that takes place leaves a mark on the environment. Our carbon emissions are increasing day by day and that means our planet is suffering from major climate changes such as global warming. Cryptocurrency is mined in a highly efficient manner. This means that the carbon emissions for transactions that take place through Ripple or other cryptocurrencies are far less than traditional methods.
A research shows that 220 million transactions on an XRP ledger consume barely enough energy to light 14 bulbs. The same amount of transactions via VISA or bitcoin consume way higher volumes of energy. This proves that not only is XRP a more efficient currency but it is also environmentally safer than both Bitcoin and VISA.
Not only is Ripple more energy efficient than other cryptocurrencies, but it is also more secure. It was developed for institutions such as banks and the government and is not open to regular checks as is the case with other cryptocurrencies.
Both research and popular opinion suggest that Ripple is the most sustainable and Eco-friendly cryptocurrency out there. In the next article we will read about the platform that is considered best for buying cryptocurrencies know as CEX.IO