Mining the bitcoin consumes somewhat 110 terawatts of an estimated per year’s energy. The energy that it takes is equivalent to the annual energy of Malaysia or Sweden.
Bitcoin’s has a shocking environmental impact, which is of great concern for environmentalists, so there are a lot of efforts going on to minimize the carbon footprint of the cryptocurrency. And as a result of these options, the world is counting on much greener options. So, if there are any sustainable options? Let’s find out in this guide.
Popular Environmentally Friendly Cryptocurrency
- Hedera Hashgraph
- Stellar Lumens
1. Powerledger – eco friendly cryptocurrency
Powerledger is a technology company that is aiming to build more eco-friendly cryptocurrency powers. Due to the initiatives for bringing more energy-efficient cryptocurrency in front of the world the
Powerledger’s naive token POWR emerges and becomes the first to see serge in 2022. In two days it raced from $0.42 to $0.82 on January 1, 2022, in just 2 days.
The POWR token is an ERC-20 token that serves as a license to access Powerledger’s platform for companies like utilities, renewables operators, microgrids, companies dedicated to 100 percent renewable energy, and real estate developers. In 2015, 30 countries achieved grid parity, which means that the cost of solar-generated energy was equal to or lower than the cost of local retail electricity.
2. SolarCoin – environmentally friendly cryptocurrency
Yet another, energy-efficient cryptocurrency, SolarCoin is worldwide famous, decentralized, and independent of any central or country government.
The SLR coins are a reward for the installation of solar and moving to renewable energy. It works with solar energy producers registering their solar installation.
Then, Claimants use an Ethereum-compatible wallet, such as Metamask, to generate a receiving address that functions similarly to a bank account.
Recipients can save, trade, or spend their SolarCoins as they see fit, and they may be eligible for ongoing grants for the next 20-30 years that they generate energy.
The problem is caused by carbon footprint, which is realized in the mining process. And, NANO has found an incredible way to reduce energy use by non relying on mining. Instead of mining it completely depends on the voting system making it one of the most achieved consensus and one of the most sustainable cryptocurrencies.
Most of Cardano’s puzzles are solved with the proof of stake method, which makes it a sustainable cryptocurrency. It only leverages 0.54 kWh of energy per transaction, far less than bitcoin’s massive 707kWh.
Bitcoin has also actively contributed to broader long-term goals of parenting with Veritree in the 2021 Cardano Summit. Veritree’s first tree offering aimed to plant one million trees.
Cardano’s native cryptocurrency, ADA, debuted in late 2017 at $0.02 and experienced an initial surge in early 2018. In 2021. However, as the 7th biggest cryptocurrency by market cap, the eco-friendly cryptocurrency is emerging stronger now.
The Stellar Development Foundation is a non-profit organization that runs Stellar. Stellar allows the blockchain users to create, deliver, and trade attributes of any currency: dollars like pesos, bitcoin, and pretty much anything else through less energy consumption.
The seller intends to provide the energy-efficient cryptocurrency for all of the world’s financial systems to collaborate on a single network. Stellar’s API and SDKs assist in transforming the financial world, and the network’s monetary connections provide even a small business with the power and reach of a large international bank with the use of comparatively low cryptocurrency.
6. IOTA – eco-friendly cryptocurrency
While relying on the proof-of-work mechanism, the IOTA did find a way to save energy with the help of the Fash Probabilistics Consensus. The currency used only about 0.11 watt-hours. The energy consumption is comparatively lower than the other cryptocurrencies, with giant financial networks. The energy consumption of the IOTA is as bare minimum as can be with a cryptocurrency. According to an estimate, it can reduce 95% of what is in present use.
With the help of its Proof of history consensus protocol, it only uses the 0.005 KWh per transaction, which sets it as the most eco friendly cryptocurrency in the world.
On top of it, it is a potential scalable, fast, and efficient solution for Ethereum and Bitcoin. The Solana network releases 2,500 tons of CO2, which makes it equivalent to the carbon emission of a small neighborhood in any mid-sized country.
Its benefits and energy-efficient features led to the massive surge of the currency from $1.84 to $170 and equipped the 5th number in the world’s crypto market cap ranking.
8. EOSIO – sustainable cryptocurrencies
Because the EOSIO uses the proof of stake method for processing the transactions, it causes less power consumption, subsequently, leading to less CO2 emissions.
It allows pre-mined EOS tokens which can be traded on traditional cryptocurrency exchanges like Binance, Coinbase, and Kraken.
EOSIO leads open-source blockchain innovation and performance platforms and is used by major businesses and developers all over the world to build secure, transparent, deterministic digital infrastructures and fewer power emissions.
With the partnership of environmental consultants, Climate Trade, the Alogrand has become the “greenest blockchain” in the industry and shares the room with Cardano.
Alogrand has come one step ahead in the mission to make blockchain greener. It has no carbon footprint which means rather than contributing to less CO2 emission, it reduces the CO2 emission to zero.
To achieve this goal Algornd has utilized the proof of stake method for processing the blockchain transitions and has achieved the sustainability goal as well.
A non-profit organization and the public blockchain, Tron offers a peer-to-peer platform that allows creators to share their applications directly on the blockchain. Direct sharing makes the whole process more eco friendly cryptocurrency than any other method available. It uses decentralized governance to model a two-tier model of Super Representatives and Super Representative partners.
Tronix, the TRON currency, is pre-mined and it can be decided to trade on Binance as well as other exchanges. Along with being more energy efficient, TRON’s plans include using it to start creating decentralized gaming platforms.
Flow is both a fast, decentralized and highly functional PoS blockchain as well as the cryptos native to the Flow network. It is intended for use in the development of games, apps, NFTs, and other internet-scale protocols as well as applications that require low latency and maximum throughput.
Flow employs a four-node architecture to achieve massive speed and cost reductions in utilizing hardware capacity without sacrificing decentralization or splitting up the network into shards or “layer two” solutions. These benefits of the Flow make it a dream for the developer along with the inclusion of white papers providing a comprehensive system specification.
Chia coins also use proof of space instead of proof of stake or proof of work. It enables home users to start a Chia farming project that will earn them coins without consuming excess energy. However, the crypto needs hard drive space and storage, which can sometimes create artificial requirements for hardware as well as raise the quantity of electronic waste generated in the marketplace.
Chia (XCH) is an eco-friendly cryptocurrency that uses farming rather than mining to create value. It was created simply to reduce the energy bills of generating crypto. This markedly reduces the energy cost per transaction, lowering it to 0.023 kWh but also securing Chia’s place as a low-energy bitcoin option.
13. Hedera Hashgraph
One of the world’s largest and most sustainable cryptocurrency networks, it uses the proof of stake method to process the transaction. The Hedera Hashgraph platform, according to Power Transition, is 250,000 times as energy efficient as Bitcoin, using only 0.001-kilowatt hours for every transaction, especially in comparison to 250 kWh for Bitcoin, 55 kWh for Ethereum, as well as 0.003 for Visa.
Hedera Hashgraph helps with sustainability projects. It also includes Hedera Hashgraph’s Power Transition, a software system. This scalability digital energy system provides individuals and businesses to control energy consumption from microgrids to national grids. It can reduce operating costs and accelerate the transition to a zero-carbon economic system.
MetaHash’s $MHC requires less power to be minted. It can be traded or used to pay the transactions. MetaHash is another
MetaHash is a four-part project that contains MetaApps, MetaGate, and TraceChain, and is another entrance into the industry of the cryptocurrency field. Miners can participate in the MetaHash network using relatively low-powered computing systems, ensuring a constant supply of assistance for this low-energy cryptocurrency.
While the pace of the MetaHash network is its main selling point, it also is among the most secure platforms. The network uses multiple PoS mechanisms to perform multi-layered verification on transactions.
The cryptocurrency creates a bridge between peers through the non-fungible tokens (NFTs). It has the main advantage of using the proof of stake method which also makes it energy efficient and provides it with impressive scaling capabilities.
The currency utilizes the FBFT consensus algorithms to speed up the transactions, strengthen the security and reduce the amount of energy used for every transaction making it a fairly green cryptocurrency as well as blockchain.
Harmony runs on Bitcoin and Ethereum. However, it is continuously improving scalability on all of these platforms.
16. Signum – sustainable cryptocurrencies
Signum uses proof of capacity (PoC) to save a considerable amount of active energy and to reduce the use of electricity to generate SIGNA for trading.
One of the original proof of taking is smart contract layer blockchains. Tezos can make changes without disrupting the network or causing a schism in the community. Another advantage of self-amendment is that it executes at a lower cost. Further changes also become easier to implement due to one blockchain to upgrade, rather than two or more.
All of the processes make Tezos an energy-efficient Proof of stake blockchain that can upgrade self, secure, and scalable.
Incredibly displaying crypto technology with a reputation for openness and innovation, the Tecos blockchain is powered through the cryptocurrency Tez (not capitalized).
18. Stellar Lumens
Stellar offers a distributed ledger platform, so it powers currencies to exchange on its platform, with XLM to facilitate trades. It uses the open-source consensus protocol to speed up the process of trades and eliminate the need for cross verification of trades as well as transactions.
Stellar Lumens (XLM) utilizes reliable nodes to authenticate its trades rather than PoW or PoS. This eco-friendly cryptocurrency platform established itself as a feasible choice for financial transactions. The Stellar network’s efficiency makes it an excellent choice for investments in a carbon-neutral cryptocurrency. It also enables the creation of tokens, which enables the formation of sustainability efforts and incentives.
Dogecoin, one of the most popular cryptocurrencies, has been regarded as a green crypto substitute for Bitcoin. The use of PoW consensus reduces its efficiency when compared to other green crypto options.
Dogecoin’s estimated energy consumption per transaction is 0.12 kWh, which is far from the most energy-efficient crypto exchange rating currently available. Dogecoin, on the other hand, is working to improve its environmental standing and is one of the leading seeds inside the low-energy bitcoin sector. Dogecoin may have the staying power needed to cement its place as an eco-friendly cryptocurrency with the help of Tesla CEO Elon Musk and other supporters.
20. Avalanche – most eco friendly cryptocurrency
A smart contract platform that uses a PoS algorithm as well as the native token $AVAX. The cryptocurrency is restricted to 720 million AVAX coins in trade. However, It has a structure that enables the deployment of custom publicly or privately blockchains as subnets, and all these subnets can handle around 4,500 times per second at a reduced cost than networks like Ethereum.
Avalanche is scalable, decentralized, secure, and energy-efficient, and it is compatible with Ethereum’s programming language. For such reasons, it is technologically advanced working on DeFi projects, games, NFTs, as well as other projects.
This is the list of 20 more energy-efficient cryptocurrencies. Most of the cryptocurrencies that use PoS( proof-of-stake) methods need less energy consumption in contrast to the PoW( proof-of-work) method. However, some cryptos have found an even more cost-effective way like the PoC ( proof-of-commitment) method.
With all these efforts in energy saving and less CO2 emission, the cryptocurrency will soon be completely environmentally friendly as per the hopes.