Bitcoin mining and operation consumes over 140 terawatt hours of electric power every year, data from the Cambridge Bitcoin Electricity Consumption Index shows, cited by The Times UK. This is around 50% of the energy that the UK consumes and more energy than Norway uses in a year.
Popular as it may be, Bitcoin's power-hungry nature causes many investors to seek greener pastures, pun intended. This article looks at six eco-friendly cryptocurrencies that have gained quite a bit of popularity.
It may seem like smaller, eco-friendly cryptocurrencies have a lower carbon footprint, but that may be due to the lower number of transactions. However, there are more energy-efficient digital assets with a reduced environmental impact.
1. Hedera Hashgraph
Hedera's eco-friendly cryptocurrency is an open-source, decentralized, proof-of-stake public ledger. It is relatively popular because it lets users trade quickly and efficiently. Many blockchain and finance firms are built on its technology.
According to experts, the consensus mechanism of this eco-friendly cryptocurrency is highly efficient. Its method of verifying transactions consumes far less power than Bitcoin's mining, proof-of-work approach.
2. IOTA
The eco-friendly cryptocurrency IOTA's technology does not necessitate mining. It uses a Fast Probability Consensus to process transactions. Its energy requirements are lower because smaller devices maintain it.
IOTA uses more energy than Hedera, but it has also abandoned proof-of-work and consumes far less power than many of its competitors.
3. Ecoterra
The Ecoterra cryptocurrency and blockchain project focuses on promoting sustainability, which is why it gained significant traction among crypto fans and investors. The recycle-to-earn (R2E) project raised around $5.85 million before its official listing in 2023 and is still going strong.
In the last presale stage, crypto whales flocked to purchase the eco-friendly cryptocurrency before it was listed on exchanges. Crypto prices always drop after a listing as early adopters cash out. This wasn't a problem for Ecoterra, whose development team moved to other areas such as advertising and marketing, R2E registration, and launching a carbon offset marketplace.
Ecoterra encourages people and companies to recycle in an effort to address climate change. Essentially, the eco-friendly cryptocurrency project promotes green education for young people with its innovative R2E model, which rewards ecosystem members. The rewards are in the eco-friendly cryptocurrency token ECOTERRA. The incentive token can generate passive income through staking.
Eecoterra gives value to recycling companies and manufacturing industries besides the financial perks offered for recycling.
4. Cardano
This highly eco-friendly cryptocurrency and blockchain uses Ouroboros, a proof-of-stake system. It saves energy by making users buy tokens to join the network. Cardano is estimated to be approx. 60,000 times more energy-efficient than Bitcoin. The entire ecosystem uses just 0.5479 kilowatts per hour.
Cardano has other advantages over Bitcoin, such as transaction speed. While Bitcoin can achieve only seven transactions a second, Cardano can achieve 1,000.
Ouroboros is the first peer-reviewed system that can be scaled as needed without sacrificing security or sustainability. Cardano is arguably the best-known eco-friendly cryptocurrency. At the time of this writing, it was the ninth-biggest crypto.
5. Green Bitcoin
Bitcoin's recent all-time high was paralleled by the advent of a new project called Green Bitcoin (GBTC). The eco-friendly cryptocurrency is still in presale, and it raised $6 million in just two weeks.
Green Bitcoin lets crypto users purchase and stake tokens through Gamified Green Staking, a novel new mechanism. They can stake the tokens during the presale if they want. After it's over and GBTC is officially listed, holders will be able to use it to predict the Bitcoin price.
The eco-friendly cryptocurrency GBTC is said to use 10,000 times less power than Bitcoin. It's based on the Ethereum Mainnet, which transitioned to an eco-friendly blockchain in 2022. Both novices and veterans of crypto can profit if they make accurate predictions. Either way, in-depth market research is recommended.
6. Nano
Our final choice is a simple, straightforward, eco-friendly cryptocurrency designed to be used as an exchange medium and for transactions. It differs markedly from Bitcoin in that its ecosystem does not charge any fees. It also features instant transactions.
Nano doesn't use mining or proof-of-work. Users broadcast their transactions to the blockchain. It reduces energy use and increases efficiency through its Open Representative Voting protocol.
More and more eco-friendly cryptocurrencies on the market
With escalating concern over the energy used for cryptocurrency mining, new projects are constantly being launched to improve the sector's carbon footprint. They are characterized by carbon footprint offsetting, more energy-efficient protocols, and increased use of renewable energy.
Insiders expect new, more sustainable, eco-friendly cryptocurrencies to emerge. They also anticipate significant changes in the ways existing currencies are used.
Almost 50 companies and individuals in the crypto, tech, energy, and finance industries have registered for the Crypto Climate Accord, which seeks to decarbonize the crypto industry and achieve net-zero emissions by 2030.
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