- Ripple general manager Monica Long has revealed that the company has taken a step towards reducing gas fees and minting costs for NFTs.
- She pointed out that Ripple’s XRP Ledger is up to 120,000x more efficient than its proof-of-work rivals such as Ethereum, which has been the biggest player in the sector.
Ethereum has been the mainstay in the non-fungible token (NFT) market, but Ripple is now staking its claim. The company announced recently that it has proposed a standard that will allow XRP Ledger users to issue NFTs using existing functionality. The ledger has an advantage over Ethereum as it’s much more cost-efficient, inherently green, and has a built-in token advantage.
NFTs have shot up to become the most trendy sector in the crypto industry in the past year. However, they are just one aspect of a wider trend – tokenization. According to the World Economic Forum, 10 percent of the global GDP will be tokenized by 2027. However, for this to happen, blockchain infrastructures need to evolve and become more efficient, scalable and affordable.
In a recent blog post, Monical Long, the general manager of RippleX stated:
This presents a unique opportunity for the XRP Ledger (XRPL): a blockchain that was created with the design and performance characteristics necessary to handle all types of currencies or assets with high efficiency and at low cost.
Ripple is out to take over the NFT marketplace, she revealed. The current infrastructure just hasn’t been good enough. This has denied its users the opportunity to fully utilize the power of blockchain-based tokens, she believes.
A better and more sustainable approach to NFTs? GM of RippleX @MonicaLongSF shares why it’s possible with the XRP Ledger. https://t.co/FKNZhyR5DK
— Ripple (@Ripple) May 24, 2021
XRP Ledger: The blockchain-of-choice for NFTs
Long believes that the XRP Ledger is ideally suited to deliver a superior user experience for NFTs and other tokens. She pointed out:
When combined with a robust suite of tools and resources, the innate performance advantages of the XRPL and its native digital asset XRP will enable developers a seamless experience for NFTs.
The XRP Ledger wins for three reasons. The first is that it’s the most cost-efficient blockchain for minting NFTs, Long continued. On Ethereum, users have to account for the ridiculously high gas fees, which usually reflect on the price of the NFT.
She added, “Thankfully, the XRP Ledger was built to be a more cost-efficient, scalable blockchain, and its coming federated sidechains aim to prevent the potential risk of clogging the network as NFT transactions take off.”
The second reason is that the XRP Ledger is inherently green. Energy usage has become one of the biggest conversations around blockchain platforms. Bitcoin is the biggest guzzler and has the highest carbon footprint. However, Ethereum’s carbon footprint is also a source of concern, especially as its usage continues to grow.
“Building on the XRP Ledger provides developers a unique opportunity to run more sustainable NFT apps and marketplaces while eliminating a heavy burden for the planet,” Long pointed out.
NFTs on a chain with near zero transaction fees and carbon emissions. We’d love your comments on the #XRPL proposal for native NFT support (by @JoelKatz @nbougalis @aanchalmalhotre). https://t.co/BufzRp6GCy
— Monica Long (@MonicaLongSF) May 24, 2021
The third reason is the blockchain’s token advantage. While Ethereum takes all the shine for the number of tokens that run on its blockchain, the XRP Ledger has impressed as well. To date, XRP Ledger users have issued or traded over 5,400 currencies via its decentralized exchange.
Since 2013, the XRPL’s fully-functional DEX has enabled those holding and receiving assets to issue, buy or sell any token—making the XRPL ideally suited for participants building a flourishing, lasting ecosystem for NFTs as tokenization launches into the mainstream.