Nobody will deny that Cryptocurrencies played an important role in revamping the global economy during the COVID-19 pandemic.
In fact, there is also no question that it has affected the environment in any way. However, it is estimated that Bitcoin consumes an estimated amount of 150 terawatt hours of electricity annually. This is more than what Argentina consumes every year.
As the world becomes digitized, it’s important to take the environmental impact into consideration. Unfortunately, when it comes to cryptocurrencies, more popular coins like Bitcoin and Ethereum are used for investment, and eco-friendly Cryptocurrencies are overlooked.
Unlike Bitcoin, Ethereum, and other cryptocurrencies, which require large amounts of energy, eco-friendly cryptocurrencies require less power and only need a few hundred machines.
As the world becomes more conscious of power consumption and the need to reduce our impact on the environment, the popularity of eco-friendly Cryptocurrency will rise.
In this article, we will talk about different eco-friendly Cryptocurrencies that consume less power compared to the power Cryptocurrencies.
So let’s start digging in and see which eco-friendly Cryptocurrency is on our list.
Table of Contents
There is no direct way to calculate how much energy is used for Cryptocurrencies. But, we all know that to mine one Bitcoin, multiple powerful computers are put in place that runs 24/7. To run these powerful computers, you need a lot of power. The power is generated by burning fossil fuels.
The need for eco-friendly Cryptocurrency might not be an apartment now, but in the future, we might have to look for eco-friendly options to invest in. In that case, it is always a good idea to have a few options available when the time calls for it.
After doing thorough research, we have come to the conclusion that the following can be great options to invest in.
Nano is relatively new to the industry, but it is on the list because it uses mining methods to generate new coins. Instead, it uses a Blockchain lattice. It is a technology that helps user-generated nanonetworks so that each user can control their own account.
Using Nano, users can attract peer-to-peer using their own Blockchain. This saves time and energy because they don’t have to use the main network all the time.
Ricardo uses a PoS mechanism that helps transactions with great speed. The transaction uses a smart contract, which drives most of its value. Algorand doesn’t use mining methods.
The network is attempting to trailblaze Blockchain sustainability by generating a carbon-negative network.
Cardano uses a PoS mechanism. This mechanism is built on a peer-reviewed Blockchain. This was developed by one of the co-founders of Ethereum and has been among the top Cryptocurrencies since then.
What makes Cardano different is that when people buy Cardano coins, instead of mining new coins, they become a member of the Blockchain network. This in itself reduces the energy consumption per transaction by 0.5kWh.
Chia is a Blockchain and transaction platform. It allows users to take advantage of available hard drives to run a decentralized network. Users can use their home desktop to run Chia software. While this method might not be an eco-friendly method, it certainly uses less power.
Instead of Proof-Of-Work, Chia uses Proof-Of-Space-Tim. So, storing data for a limited period of time can help you earn Chia’s token.
IOTA is probably the least energy-using Cryptocurrency. It uses 11kWh of power to make 100,000 IOTA transactions.
If we compare this with Bitcoin transaction power consumption, one Bitcoin transaction consumes 741kWh, which is almost 100-fold more.
Currently, IOTA is priced at $0.3; experts believe that it has the potential to become something like Bitcoin.
If you are someone new to the Cryptocurrency industry and want to learn your way around, Click here to learn more about the industry.
On a closing note, we would like to say that Cryptocurrency is here to stay. Yes, it might be hard to believe this right now. But the technology on which Cryptocurrency is based has the potential to become the core technology in every sector.
However, if we want to keep this technology for the long term, we need to look for sustainable ways.
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