There is currently a shortage of CO2 supply in various industries, including the food and beverage sector, healthcare, and manufacturing. Interestingly, this shortage is also affecting the cryptocurrency industry.
Cryptocurrency has been a popular topic of discussion in recent years. However, as its use grows, so do the worries about the significant energy needed for its production. According to research, the Bitcoin network’s energy consumption is comparable to a tiny nation.
Nevertheless, many green cryptocurrencies help reduce the energy consumption and carbon impact of cryptocurrency mining. You must have heard about some of them, but in this article, you will learn why they are environmentally friendly.
Leading 7 Green Cryptocurrencies
The top seven environmentally friendly cryptocurrencies are:
SolarCoin
This coin rewards consumers and companies who use solar energy. The owner receives one Solar Coin for each MWh of solar energy produced. You can purchase products and services or swap it for other cryptocurrencies.
The objective of SolarCoin is to promote the generation of clean, renewable energy while lowering the carbon impact of energy production. It aims to promote sustainability and facilitate the shift to a future powered by cleaner energy. This is done by offering incentives for the generation of solar energy.
Chia
Digital money Chia uses a special consensus algorithm called “Proof of Space and Time.” By requiring disk space rather than extensive calculations, this approach is intended to be more environmentally friendly than conventional “Proof of Work.” Chia’s consensus method uses less energy, making the cryptocurrency industry more environmentally friendly.
Power Ledger
Power Ledger is a platform built on blockchain technology that facilitates the exchange of renewable energy among individuals and entities. This helps to minimize dependence on central energy sources, contributing to a decrease in the carbon impact of energy generation.
Power Ledger facilitates P2P (peer-to-peer) energy trading, reducing reliance on centralized sources and cutting carbon emissions.
Ethereum 2.0
To address the scalability and energy efficiency challenges with the Ethereum network, Ethereum 2.0 has been developed. The update is anticipated to drastically lower the energy usage of the Ethereum network, making it one of the greenest cryptocurrencies.
It strives to significantly decrease the energy usage of the Ethereum network, positioning it as one of the most eco-friendly cryptocurrencies.
Nano
NANO is a quick and light cryptocurrency with its “Open Representative Voting” unique consensus method. This system lessens the energy required to reach consensus on transactions and enables fee-free transactions to happen instantly.
This, combined with the block-lattice structure of the NANO ledger, allows for rapid, energy-efficient transactions free of charge.
Helium
Helium makes it possible to build low-energy, long-range networks for IoT devices. This helps lower the energy used by these devices and networks.
Low-power networks from Helium cut down on the energy used by IoT networks and devices.
IOTA
The cryptocurrency IOTA utilizes a special consensus algorithm called “the tangle” to achieve its goals. With the help of this method, transactions may be completed quickly and without fees, and bitcoin mining uses less energy overall.
IOTA’s tangle allows for fast, free transactions that use less energy.
Conclusion
The cryptocurrencies above set the bar for encouraging environmental sustainability in the cryptocurrency industry. They are helping to reduce the harmful impact mining and using cryptocurrencies have on the environment. This is achieved by using less energy and creating a smaller carbon footprint.
