Most of the people who take care of the altcoin space almost never think about how "green" their cryptos are. This is partly due to the fact that most of the digital currencies on offer today are simply presented to us as a piece of code on the Internet. However, in terms of how these digital codes are actually obtained, we can see that there is a lot more going on than what meets the eye.
At present, most of the world's most important altcoins require a lot of electricity and electricity (which in turn has a serious ecological impact on the natural resources of the world). With that said, let's take a look at whether XRP really is a "green encryption option" or not.
To begin with, we can see that the premier good uses almost $ 300,000 of electricity on a daily basis. While this number may seem extremely large to some, it is worth noting that Bitcoin on the other hand, consumes an annual supply of electricity that could potentially feed the entire nation of Ireland for a period of 365 years. days.
Why is Crypto So Energy Intensive?
This is a fairly natural question that, if examined in detail, can be broken down in a systematic way. To begin with, the creation of unique blocks on the Bitcoin native blockchain requires miners to solve complex mathematical equations (called collision SHA-256).
The problems are so mathematically heavy that the miners have to make use of large, energy-intensive supercomputers. Not only that, the devices must be left running as they often have to work for days, weeks and months in a row (without interrupting operations).
If this were not enough, the native Bitcoin protocol is designed in such a way that with the passage of time, the difficulty in calculating the above-mentioned SHA-256 equations will continue to increase. Not only that, even the number of coins produced per block continues to fall by a factor of 0.5 each time each new block is produced.
More on The Matter
As many of our readers already know, every block extracted on the Bitcoin blockchain produces 50 BTCs. However, after nearly two "halvings" in 9 years, a single block is now able to provide a total of 12.5 BTC. It is also expected that going forward, this number will continue to fall and settle around 6.25 as we move towards the year 2020.
This basically means that as we look to the future, it will take more energy for miners to produce less blocks and coins (all while energy and maintenance costs continue to increase).
Is Bitcoin mining worth it?
It depends on who you really ask. For some, the company is absolutely worth it as it not only allows them to get BTC but also keeps the Bitcoin network going. However, over the last month or so, many people have come out and have said that in order for BTC mining to remain profitable, the price of Bitcoin should remain above the $ 7,000 threshold. However, by looking at the price of BTC right now, it seems like it will take some time before this premier asset becomes a profitable business once again.
At present, Ripple's XRP is one of the greenest currencies available on the market today. This is because, the premier altcoin makes use of a consensus mechanism that is relatively light and easy to use.
Finally, with the introduction of blockchain 3.0, many of the energy-related problems that currently exist with currencies such as BTC, ETH will be alleviated to a large extent (since the tokens will all be rewarded). It remains to be seen how the future of this thriving gaming industry from now on.