As the world becomes more acclimated to eco-friendly practices, every industry is experiencing changes. Cryptocurrency is no exception. As crypto transactions are completed online, you may not know that cryptocurrencies’ energy consumption is high. More currencies are starting to embrace energy-saving measures to reduce their carbon footprints. Learn more about which cryptocurrencies can help you make less of a negative impact on our environment.
The process of sourcing and maintaining cryptocurrencies directly impacts the natural environment. The total energy to mine Bitcoin alone equates to almost a third of the energy consumed by the entire United Kingdom during the COVID-19 lockdown. The cryptocurrency industry contributes 0.3% of the world’s total carbon emissions, which is more than the emissions of Norway, Switzerland, and Croatia combined. However, do not worry too much about how your crypto investments impact the planet. Plenty of newer currencies are taking measures to reduce energy usage and carbon emissions.
First-generation coins like Bitcoin use transaction verification methods that require significant energy, but third-generation coins have found new, more sustainable ways to process payments. Green currencies use Proof of Capacity and Proof of History systems to reduce carbon emissions. Proof of Capacity, or PoC, utilizes the spare space on a device’s hard drive to store hashing solutions. Proof of History, or PoH, encodes the passage of time to sustain cryptographic consensus. Cryptocurrencies are also embracing the use of renewable energy sources to increase sustainability.
Green currencies are easier to find than you would think. According to the experts at Nebeus, these are the most eco-friendly cryptocurrencies on the market: Cardano is the seventh-largest cryptocurrency by market cap and uses a PoS system to reduce its use of natural resources. Nano is unique because it creates virtually no carbon footprint or energy consumption. Each address on Nano has its blockchain, so each user has the power to verify their transactions. Solarcoin is connected to solar energy and was created to incentivize a solar-powered planet. A new token of Solarcoin is created for each solar-powered megawatt generated.
Ethereum 2.0 is a trailblazing green crypto token and the second biggest cryptocurrency by market cap. The blockchain switched to a PoS model in 2022, automatically reducing its carbon footprint. Hedera 2.0 uses the same PoS system and is attractive because of its incredibly fast transaction processing. The coin is owned and operated by some of the biggest tech companies in the world, like Google, LG, IBM, Tata Communications, and Boeing.
Nano is the most energy-efficient coin of all of these green cryptocurrency options. It stands out from the competition for its innovative validation and consensus mechanism that negates the need for energy consumption. The platform also boasts no transaction fees, setting it apart from most other coins on the market.
Green currencies are relatively easy to find, so ensure you know how much energy the coins in your portfolio are consuming. Reduce your energy use and carbon footprint with the simple act of trading a more sustainable currency.
Disclaimer: This is a paid release. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of NewsBTC. NewsBTC does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.
