What is the most eco-friendly cryptocurrency? One thing is for sure: it’s not Bitcoin.
But which one is the most eco-friendly option for crypto?
Cryptocurrencies are all the rage these days, and there are a vast number of them to choose from.
There’s been a lot of focus on Bitcoin’s harmful environmental impact recently. While efforts are being made to reduce the carbon footprint of cryptocurrencies, some investors are looking for more eco-friendly options.
But which crypto is the most eco-friendly?
In this blog post, we’ll take a look at some of the top contenders and see how they measure up. Keep reading for some insights that may surprise you!
Low Energy Cryptocurrency
Some cryptocurrencies are more energy-efficient than others. Bitcoin, for example, employs a ‘Proof of Work’ system that requires a lot of computations and processing power to generate just one token. The amount of power consumed by cryptocurrencies that use a ‘Proof of Storage’ or ‘Proof of Stake’ approach is significantly lower, as is the case with currencies using a block-lattice technology that does not require mining.
Even among ‘Proof of Work’ cryptocurrencies, some are more energy-intensive than others. This is mostly due to the fact that these currencies use ASIC-resistant algorithms, which require significantly more electricity.
Low Energy Cryptocurrency Options
Let’s take a look at some of the most energy-efficient cryptocurrency options that are currently available.
SolarCoin (SLR)
SolarCoin is worldwide, decentralized, and impartial to any government. SolarCoin may be spent and traded just like other cryptocurrencies.
SolarCoin is a new kind of cryptocurrency that was created for solar power generation. Every Megawatt hour generated from solar technology is worth one SolarCoin. This network currently mostly relies on individuals submitting documentation to verify energy production, but with the Internet of Things, this method could be streamlined.
Cardano (ADA)
Cardano was created by Charles Hoskinson, an Ethereum co-founder. It was the first peer-reviewed blockchain and can be used for digital contracts. This crypto has the ability to complete 1000 transactions per second (TPS), which is far superior to Bitcoin’s capacity of 7 TPS.
Cardano uses a ‘Proof of Stake’ mechanism which means that people who join the network have to buy tokens. This saves a lot of energy consumed in computing.
Powerledger (POWR)
The POWR cryptocurrency was created in 2016/17 and powers the Powerledger platform. Powerledger is a platform that helps people trade energy. This is done through a decentralized network that makes the energy grids more stable and resilient.
The platform also helps track the trading of energy, flexibility services, and environmental commodities.
What Is the Most Eco-Friendly Cryptocurrency FAQ
Is Ethereum more environmentally friendly than Bitcoin?
The Ethereum inventor Vitalik Buterin has confirmed that the cryptocurrency will go through a major upgrade, which will cut energy consumption by almost 99% and make Ethereum 2.0 more eco-friendly than Bitcoin.
Why is Crypto not eco-friendly?
The energy used by computers to create new digital tokens, via a process known as “proof of work,” is a significant portion of crypto’s environmental effect. This involves a lot of computing power. The server farms competing to generate new Bitcoins consume as much electricity each year as a small nation.
Closing on What Is the Most Eco-Friendly Cryptocurrency
If you’re looking for a sustainable way to invest your money in digital currencies, take the time to research how it stacks up against others when considering environmental impact.
You may find that one currency is more environmentally friendly than another and can help you make an informed decision about which cryptocurrency makes sense for your investment portfolio. Whichever crypto you decide to invest in, remember to monitor your investment and heed any cryptocurrency news or updates that could affect the market.