Robert Steinadler, 6 months ago
We all know the debate about whether mining is a sin to mother nature and if it is inevitable for blockchain technologies to achieve carbon neutrality. There is most likely no stronger movement in western society than the advocacy for taking climate change seriously and acting accordingly. While the Netherlands is mostly engaged in researching hydrogen as an alternative energy source, Germany decided to shut down its nuclear power plants even in the face of a severe energy crisis. This underlines how important this topic is.
How is Ripple planning to become carbon-neutral and how does the XRP Ledger contribute to the fact?
The agenda of reaching carbon neutrality in 2030 was announced in late 2020, but it was earlier this year when Ripple started to outline the strategy. Pledging $100 million to reach its ambitious goals the company is not only looking to strengthen its own efforts but also investing in fintechs that trying to make a difference as well as carbon removal companies.
Another goal is to tokenize carbon credits since there is a global effort in making these credits the industry standard, meaning that every major company has to offset carbon. There is also a secondary market that involves trading carbon credits which is also facing several challenges.
It was in December last year when Ripple announced a partnership with Xange that is providing such a secondary market. The company is looking forward to developing its own custom solution on top of the XRP Ledger with the primary focus to ship the finalized product to the African market.
Non-fungible tokens often require smart contracts which is not per se the strength of XRP. There have been several proposals in the past on how to issue NFTs on the XRP Ledger. In March 2022 a new proposal was made that is known as XLS-20. It aims to add native NFT support making the tokens indivisible, unique, and unlike already existing solutions not available for payments.
This requires putting in additional work and extending the XRPL with new transaction and data types as well as libraries. Aside from the speculation that NFTs are about to be traded in the same fashion as on Ethereum – which they could – it seems that Ripple has bigger plans using this technology.
Carbon credits are not as reliable in terms of duplicating them as many NGOs and authorities wish them to be. Duplicating credits is one of the biggest challenges the market is facing currently since it allows to offsets carbon emissions twice with the same certificate. This happens often between more than one company, meaning that two more companies are offsetting using the same certificate. While many crypto investors are mainly associating NFTs with digital collectibles they are in fact unique certificates that could extend to the carbon offset market. It remains to be seen if NFTs will provide a viable solution for the problem and which blockchain will win the race to offer a solution to the global market.
Mar 09, 2023
Paul Krugman is an elderly economist who thinks Bitcoin and other cryptos are rubbish - and hasn't been shy to share that opinion. Yesterday he got a taste of his own medicine from the crypto community after his tweet that he was kicked out of payment service Venmo. "Did you try to buy drugs?" Was a mocking response.
Mar 08, 2023
Ripple still has to deal with the SEC in court. Despite the ongoing fight over the question of whether the company was selling a security with XRP or not, Ripple continues to strengthen its efforts to advocate for crypto. A few days ago, Ripple published the results of a survey that was conducted together with the US Faster Payments Council.
Mar 03, 2023
On Twitter, you can often hear American crypto companies complaining that the lack of clear regulation is driving businesses offshore. The reasoning is that the financial watchdog the SEC is filing lawsuits left and right, creating uncertainty and discouraging innovation. Now, numbers confirm that there is indeed an exodus ongoing from the US to other countries, albeit a slow exodus.
Feb 24, 2023
This week is exciting when it comes down to announcing new foundations and looking at their plans. First Bosch and Fetch.ai pledge $100 million to explore industrial applications of Web3 and AI. Yesterday, the Linux Foundation Europe announced to start of a new foundation for solely one purpose: Wallets.
Sign up to stay informed via our email updates