- Today, there are over 4,500 minable coins and tokens.
- Bitcoin, the world’s largest cryptocurrency, releases 65 megatons of carbon dioxide into the atmosphere annually
The environmental impact of Bitcoin has been an issue for some time. From being compared to national energy consumption to the impact of such consumption on climate change, high energy consumption is the largest and the easiest way to defeat it.
Similarly, the carbon dioxide emissions of many other cryptocurrencies are huge, and investors around the world are favoring more environmentally friendly options. Currently, there are over 4,500 minable coins and tokens that raise great questions about the sustainability of the process. Electricity consumption is required not only in the mining industry but also in transactions.
For example, Bitcoin, the world’s largest cryptocurrency, currently consumes about 150 terawatt hours of electricity annually. Its usage exceeds that of all of Argentina and its population is 45 million. Producing this much energy releases about 65 megatons of carbon dioxide into the atmosphere annually. This is comparable to Greek emissions. Cryptocurrencies contribute significantly to global air pollution and climate change. In fact, Bitcoin uses 707 kilowatt hours (kWh) of power per transaction. This is 11 times more than another cryptocurrency, Ethereum.
For transactions, cryptocurrencies require a computer to solve complex math problems. As the use of cryptocurrencies and transactions increase, math puzzles become very complicated as more people compete to solve them. Multiple miners use electricity in competition for rewards. On the other hand, 99.99% of all working machines failed to win the race and discarded the results. It produces a lot of carbon emissions.
Like other industries, cryptocurrencies face many challenges to greening – integrating truly sustainable practices into their operations and ultimately pursuing profits at any cost. Avoid.
It is very difficult to point out that one currency is more “environmentally friendly” than another, as there are so many parameters that need to be considered.
So here is a list of the top 5 cryptocurrencies that are striving to be environmentally friendly.
# 1 solar coin
SolarCoin is a decentralized global cryptocurrency. Like many other cryptocurrencies, you can trade using SolarCoin. The biggest difference is that the platform aims to encourage real environmental activities. That is, the solar energy generated in a verifiable way.
SolarCoin has its own operating procedure. Create and distribute solar coins every megawatt hour generated from solar technology. Users upload documents to prove energy generation by solar technology. This significantly reduces the cost of installing the solar array by offsetting the solar array through SolarCoin. When the value and price of SolarCoin exceeds the cost of producing energy, it becomes virtually free – solarity.
# 2 Stella
The Stellar Network is run by the Stellar Development Foundation and was released in 2014. Stellar is an open blockchain network that provides enterprise solutions by connecting financial institutions for large-scale transactions. Lumens are Stella’s tokens.
The network is seriously undertaken by IBM and Deloitte, as well as banking agencies in Nigeria, the Philippines, India, France, the South Pacific and, more recently, Ukraine.
The Stellar Consensus Protocol (SCP) is open source and relies on authenticating transactions that occur through a set of trusted nodes rather than running the entire network as a proof-of-work or proof-of-stake algorithm. The authentication cycle is shorter and faster than most other cryptocurrencies. Therefore, keep costs low and minimize energy usage. The Union Byzantine Agreement, its algorithm, is an energy-efficient alternative to traditional Bitcoin-style mining networks.
In addition, the network token, Lumens, facilitates transactions on blockchain-based distributed ledgers with high efficiency in a fraction of a cent. This network also allows individuals and institutions to create tokens for use in the network. This has led to the use of networks for sustainability initiatives such as investment in renewable energy.
# 3 Cardano
Developed by Ethereum co-founder Charles Hoskinson, Cardano acts primarily as a digital currency, but can also be used for digital contracts, DApps, and other purposes. Its most amazing feat is that Cardano can achieve 1000 transactions per second compared to Bitcoin’s 7 transactions per second.
These fast transactions make Cardano much more energy efficient. Its “proof of stake” consensus mechanism allows people participating in currency purchase tokens to join the network, resulting in enormous energy savings. Some claims that cryptocurrency networks consume only 6GWh of power.
# 4 Algorand
Algorand is another open source payment-centric blockchain network aimed at solving one of the most persistent problems facing cryptocurrencies, scalability. Algorand employs a proof of stake consensus mechanism that is important to protect the blockchain and prevent new tokens from being created from the thin air that could not be obtained. Each user’s impact on the network is proportional to their investment in the system.
Since Algorand does not involve mining, the network is trying to lead the sustainability of the blockchain by creating a carbon negative network. Last year, Algorand claimed that its blockchain was completely carbon-neutral. We are partnering with Climate Trade, a leader in carbon emission transparency and traceability. In addition, the algorithm does not include mining. This is an effort to create a carbon negative network and improve sustainability.
# 5 nano
Nano was released in 2015. Nano is a cryptocurrency created to address some of the scalability issues associated with blockchain-based digital assets (such as Bitcoin and ether). This includes high fees and slow trading times. It uses another type of ledger technology called directed acyclic graph (DAG). DAG is not a blockchain and does not require mining. The DAG ensures that each Nano validator maintains its own blockchain, called the “account chain”, instead of contributing to a single ledger of transactions for which everyone has a copy.
Nano uses energy efficient block grid technology. A block grid is a structure where every user (address) gets its own chain that only they can write, and each user keeps a copy of every chain. As a result, cryptocurrencies are known to be freer, faster, and have significantly fewer energy transactions than many cryptocurrencies.