In a fiery exchange on X, Ripple’s Chief Technology Officer, David Schwartz, pushed back against recent criticism by Jonny Litecoin, a notable Litecoin influencer. The clash reignites a long-standing debate between supporters of proof-of-work (PoW) and proof-of-stake (PoS) consensus-based cryptocurrencies.
Jonny Litecoin took a jab at XRP in a September 2 post, arguing it lacks intrinsic value due to its creation mechanism. In his post, he claimed XRP is generated for free “out of thin air” via code, unlike Litecoin, which uses computational effort and energy through PoW—positioning it as a more “real” asset in comparison.
Schwartz, however, didn’t let the comment slide. In a September 4 post, he pointed out that XRP and Litecoin serve similar functions, but added that XRP’s energy efficiency makes it the more sustainable choice.
Two products are equivalent except that one takes much more energy to make than the other. Which one do you think is the most likely to grow in popularity over time?
— David ‘JoelKatz’ Schwartz (@JoelKatz) September 3, 2025
Schwartz emphasized the environmental cost of mining-based currencies like Litecoin without denying the technical aspects of PoW.
Debate Between PoW and PoS Consensus
Proof-of-Work (PoW) consensus requires miners to solve complex mathematical problems to validate transactions, consuming more computational power and energy, where miners can get a reward as well. Some of the popular blockchain using PoW are Bitcoin and Litecoin.
Meanwhile, Proof-of-Stake (PoS) allows validators to stake their cryptocurrency to validate transactions. This consensus mechanism uses less energy, prioritizing those with larger holdings. While PoW is more decentralized but energy-intensive, PoS is energy-efficient but potentially less decentralized. Ethereum, XRP Ledger, and a number of other blockchain use PoS, where validators stake crypto assets to become validators and validate transactions.
Energy Use vs. Perceived Value
The dispute is just the latest flare-up in the broader ideological battle between PoW and PoS supporters. Last week, a post shared by Litecoin’s official X account stirred tensions further by mocking Ripple CEO Brad Garlinghouse and attacking XRP’s fundamentals. Despite backlash from the XRP army, the Litecoin side held firm.
Such discussions show how consumers’ and developers’ objectives are changing as cryptocurrency matures, shifting from mining bragging rights to energy-conscious solutions that can scale responsibly.
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