Several Blockchain projects have created new cryptocurrencies that are more sustainable than Bitcoin. There are over 10,000 cryptocurrencies since the introduction of Bitcoin. In the past two years, some of the more popular cryptos have been Ethereum, Litecoin, Bitcoin Cash, EOS, and Cardano. Some of these crypto coins are eco-friendly and do not have environmental problems. They use a variety of mechanisms to be more environmentally friendly, including PoS and other energy-efficient algorithms.
1. Cardano (ADA) 2. Ripple (XRP) 3. Holo (HOT) 4. Hedera 5. Devvio 6. Chia (XCH) 7. Tron (TRX) 8. IOTA (MIOTA)
9. MetaHash (MHC) 10. Nano 11. Algorand 13. Bitgreen 14 Signum (SIGNA) 15 Stellar Lumens (XLM)
Most of these coins use the PoS algorithm that doesn’t require mining. The method makes them more environmentally friendly since there isn’t an increase in energy consumption when scaling. These highly scalable digital energy platforms allow customers and businesses to manage their energy consumption. This helps in lowering costs resulting in improved energy efficiency.
The most sustainable cryptos are the ones that have the least environmental impact. However, it is important to consider other factors as well, such as scalability, security, and decentralization. Some of the most promising eco-friendly cryptocurrencies include Cardano (ADA), EOS, and TRON (TRX).
Estimating the energy consumption involved with crypto mining is a complex task. Estimates vary, but some analysts place the annual energy consumption tied to crypto as being on par with a small country. One way to get a handle on energy use is by looking at individual countries.
Bitcoin is most commonly associated with potential economic and security risks but is increasingly facing the pressure of a less desirable issue in crypto. Some crypto-assets like bitcoin have a significant carbon footprint that requires vast computational power. This is typically derived from electricity, with a large proportion coming from coal-fired power plants in China. The growing awareness of the environmental impact of crypto has led to the development of eco-friendly alternatives that use less energy.
Proof-of-work (PoW) consensus mechanism allows a network to come to an agreement on the state of the blockchain. Here miners compete to solve complex mathematical problems. The first miner to solve the problem gets to add the next block to the blockchain and receives a reward for their efforts. Proof-of-stake (PoS) uses token holders to validate transactions and add new blocks to the blockchain. The size of the stake determines how often a user can validate transactions. PoS is more energy-efficient than PoW because there is no need for miners to use computational power.