Top 6 Eco Friendly Cryptocurrencies
Crypto currency is a kind of payment that is traded online for exchange of goods and services. It is a virtual or digital currency secured by cryptography, which makes it hard to forge or double- spend. You need to exchange real currency for buying a cryptocurrency to access the goods and services. Are these cryptocurrencies bad for environment? And if yes then are eco friendly cryptocurrencies available? Lets read.
Cryptocurrency is growing on a huge scale. The increasing demand for bitcoin mining is the most but the problem with bitcoin or other crypto currency mining must also be considered. The process of cryptocurrency mining needs high powered computers.
Smaller currencies may have a lower carbon footprint. But that may be because there are fewer transactions. However, there are digital assets that are more energy efficient – which means their impact on environment is reduced.
Are cryptocurrencies bad for the environment?
To mine cryptocurrency, high powered computers are needed to solve brainstorming algorithm in return of coins. These high-powered computers need vast electricity. And if that required electricity is generated by non-renewable resources like coal, then it worsens the problem.
To reduce cryptocurrency’s effect on environment, many users have started favouring green cryptocurrencies.
Are there any environmentally friendly cryptocurrencies? | Top eco friendly cryptocurrencies
There are digital currencies available which are more energy efficient which means their impact on environment is lower. Lets read about such top 6 eco friendly cryptocurrencies which require low energy:
- Solar Coin (SLR)
- BitGreen (BITG)
- Cardano (ADA)
- Nano (NANO)
- IOTA (MIOTA)
1. Solar Coin (SLR)
Solar coin is a different type of currency which rewards solar coin to user who generates solar energy using solar panel. Basically, solar coin promotes solar energy. User receives solar coin in his Ethereum-compatible digital wallet at the rate of 1 SolarCoin per 1 MWH of verified solar electricity production. Claimants can save, exchange, or spend SolarCoins as they wish, and may receive ongoing grants over the next 20-30 years they generate energy.
2. BitGreen (BITG)
Bitcoin Green is a proof-of-stake, transactional currency designed to provide a scalable and sustainable alternative to Bitcoin.
Bitcoin Green (BITG) is founded on ‘The Green Protocol’. This protocol utilizes a highly efficient proof-of-stake consensus algorithm that solves many of Bitcoin’s sustainability and scalability problems. And, Bitcoin Green can be mined on any computer or laptop without specialized equipment.
3. Cardano (ADA)
Cardano is developed by Charles Hoskinson who is a co-founder of Ethereum. Cardano is a proof-of-stake blockchain platform. It is peer-reviewed research and developed through evidence-based methods. It consumes 0.5479k Wh with 1000 transactions per second compared to 5 TPS of BTC. So it makes it greener choice.
4. Nano (NAN0)
The Nano network includes a set of unique and efficient features to provide instant payments which require very little energy, are easy-to-use and provide the scalability needed for true digital money.
Nano uses Block Lattice and allows each account to have its own blockchain, rather than sharing one single chain everyone is competing to add blocks to.
Consensus protocol called Open Representative Voting (ORV) is used for minimal energy usage. Consensus is reached through representatives voting on the validity of individual blocks shared on the network. Nano transfers are instant and it is free to trade.
5. IOTA (MIOTA)
It uses Tangle, an alternative form of technology that does not need miners. The IOTA network is built for the Internet of Things, with tamper-proof data, feeless micro transactions and low resource requirements. When user sends an IOTA transaction, it validates two other transactions. This allows IOTA to overcome the cost and scalability limitations of blockchain.
IOTA uses power with 100000 IOTA transaction costing 11kWh compared to 741kWh for 1 Bitcoin.
Chia Network develops a blockchain and smart transaction platform created by the inventor of BitTorrent, Bram Cohen. It implements the first new Nakamoto consensus algorithm since Bitcoin in 2008. It uses proofs of space and time which replace energy intensive “proofs of work” used by bitcoin.
Chia coins can be farmed on the hard drives of laptop or desktop computers and unused space can be utilised for “plots”. These plots then utilize energy-efficient resources of drive space over the subsequent years to participate in the consensus process that verifies new blocks of Chia blockchain.
We read how cryptocurrencies like bitcoin need high power machines which create pollution. We read how to reduce impact of cryptocurrencies on environment. We also read about top most eco friendly cryptocurrencies available. Investment in cryptocurrencies is risky as cryptocurrencies are not backed by any bank or government. So, investor should not invest whole money in cryptocurrency.