XRP and Bitcoin have been rivals for a long time. While Bitcoin remains the dominant cryptocurrency, comparisons with other cryptocurrencies, like XRP, are constant. Recently, Ripple’s president, Monica Long, highlighted a key difference: energy efficiency.
XRP Ledger: Energy Efficiency Champion?
In a video on X (formerly Twitter), Long argued that the XRP Ledger is far more energy-efficient than Bitcoin. She explained that Bitcoin’s Proof-of-Work (PoW) mechanism is incredibly energy-intensive. Many other cryptocurrencies, like Ethereum and Cardano, have switched to the more energy-friendly Proof-of-Stake (PoS) method. The XRP Ledger uses a different consensus algorithm altogether, making it, according to Long, 120,000 times more energy-efficient than Bitcoin’s PoW. She even claimed it’s greener than using cash!
Ripple’s Ambitious Plans
Ripple is aggressively trying to integrate blockchain technology into traditional finance. Their recent $1.25 billion acquisition of Hidden Road, a brokerage, clearing, and financing firm, is a big step in this direction. Ripple aims to leverage Hidden Road’s massive $3 trillion annual transaction volume, routing some of it through the XRP Ledger for faster settlements. This is expected to boost XRP’s value. The end of Ripple’s long-running legal battle with the SEC is also paving the way for future growth.