The 12 Most Environmentally Friendly Cryptocurrencies
If your crypto convictions are strong, you’ve heard every criticism in the book by now. But a more recent crypto critique comes from an environmental angle – assets like Bitcoin and Ethereum may not be as eco-friendly as we’d like to think.
Of course, the world of crypto goes far beyond these two foundational assets. With a little more digging, we discover that countless networks, coins, and tokens are indeed more efficient and sustainable from an environmental standpoint.
That’s why we’re listing the top 12 most eco-friendly cryptocurrencies in today’s article. Put them on your watchlist if you like seeing crypto move in a greener direction.
1. Stellar (XLM)
Efficient cross-currency transactions are the bread and butter of the Stellar network, an open-sourced blockchain system gaining a lot of attention in the industry.
Stellar uses tokens called Lumens that allow users to trade back and forth between various currencies in a fast and low-cost environment.
Experts predict that cross-currency trading will be at the center of the next crypto wave, so the Stellar network is an exciting, sustainably focused project to keep an eye on.
2. Cardano (ADA)
Few communities are more enthusiastic than the Cardano crowd, and when you look at ADA from an environmental standpoint, you can see why this excitement is justified.
Cardano is the world’s first peer-reviewed blockchain, brought to life by Ethereum co-founder Charles Hoskinson, along with an array of esteemed academics and scientists.
Its ‘Proof of Stake’ consensus is far more efficient than Bitcoin, with an estimated 6 GWh power requirement of the entire network. Not to mention, ADA has one of the largest market caps in all of crypto, trailing close behind BTC and ETH.
3. EOS.IO (EOS)
Another Proof of Stake platform, every EOS token has already been mined for highly scalable, efficient applications on the EOS.IO network.
Multiple programming languages can be used for these decentralized apps (dApps) and smart contracts, making it an accessible and intriguing system for crypto newcomers.
EOS is positioned as an eco-friendly Ethereum competitor, able to efficiently handle nearly a million transactions per second.
4. Ripple (XRP)
One of the most ambitious projects in the whole crypto-sphere, Ripple has had its struggles but remains among the eco-friendlier networks and services available.
The goal of Ripple is to facilitate fast, seamless conversions between global currencies, using the native token XRP as a medium of exchange in the interim.
Thanks to its Ripple Protocol Consensus Algorithm (RPCA) which requires 80% network validation for a transaction, Ripple moves fast and efficiently, making it an eco-friendly crypto with real-world practicality.
5. Algorand (ALGO)
After forming a partnership with ClimateTrade, Algorand became the first blockchain to ever achieve certified carbon-neutral status.
This platform does not require mining, and its permissionless Proof of Stake system is highly energy efficient as a result.
With a growing network of exciting DeFi projects in gaming, lending, exchanges, and more, Algorand is aiming to be the future of finance while minimizing its impact on the environment.
6. SolarCoin (SLR)
Launched way back in 2014, SolarCoin has the honor of being one of the first cryptocurrencies directly linked to real-world environmental initiatives.
For every megawatt-hour of solar energy generated, one token is created for users on the proof of stake algorithm.
Not only is the network very efficient as a platform for transactions and aps, but it also incentivizes coin holders to utilize more solar technology and rely less on carbon-heavy resources like fossil fuels.
7. Nano (NANO)
Nano is yet another cryptocurrency that doesn’t rely on mining to work, which is certainly a theme in our list today. It runs on a consensus mechanism called Open Representative Voting (ORV), allowing users to vote on each transaction.
However, these transactions occur asynchronously, meaning they can be achieved in under a second with complete security and assurance.
The Nano network has one of the lowest carbon footprints in all of crypto, with a unique approach to blockchain that may intrigue investors.
8. IOTA (MIOTA)
One of the only proof-of-work cryptos on this list, IOTA does things differently by using a Fast Probabilistic Consensus (FPC) and requiring minimal energy to operate.
One PhD student calculated the energy consumption per transaction on this network to be around .11 watt-hours, which is astonishing for anyone familiar with broader crypto energy costs.
9. Chia (XCH)
Chia was way ahead of the game when it was first introduced by BitTorrent’s Bram Cohen, and the fact that it can be mined on Amazon Web Services (AWS) makes it more accessible and appealing.
The Chia Network uses something totally unique, called proof-of-space-time, to operate. With more data and more time spent mining, the more potential XCH you can earn.
10. BitGreen (BITG)
The BitGreen project appeared around the crypto bull rush of 2017, incentivizing users to take eco-friendly actions in their daily lives.
BITG can also be earned by staking through a low-energy PoS algorithm. While BITG has not traded particularly well over the past few years, it shows that crypto has the power to alter our behavior for the better and be more responsible for our impact on the environment.
11. HoloToken (HOT)
2021 is the year that Holochain may finally see the light of day, and it’s an exciting development for crypto enthusiasts who have been waiting for this project.
Holochain unique in that it relies neither on proof of stake or work, but instead each user providing a small amount of computing and storage to run applications on the network.
HoloTokens are rewarded in turn, and the entire platform is praised for its extreme energy efficiency.
12. Signum (SIGNA)
Once known as Burstcoin, this cryptocurrency has rebranded to Signum and rebuilding from the ground up with a greater focus on sustainability.
The project has support and enthusiasm, and is worth keeping on you radar as a potential breakthrough coin once the platform is up and running.
The Future of Eco-Friendly Crypto
We’re always eager to know where the crypto space is headed, especially in regard to energy efficient mining, low-consumption platforms, and other projects with green ambitions.
New Networks and Coins
Despite 12 solid entries on our list of eco-friendly coins, this aspect of the crypto industry is still brand new. Expect many new projects to take form in the years to come, and leave plenty of space on your watchlist to see how they trade.
Renewable Energy Mining
Drawing from resources like hydroelectric, solar, and wind power, industry pioneers are aiming to mine crypto like Bitcoin through energy-efficient means. This proves that Bitcoin can indeed be eco-friendly if the power comes from a renewable source.
More Green Crypto Trends
There is plenty of exciting news linking cryptocurrency to eco-friendly initiatives, and vice versa. The people most passionate about improving global financial systems are also interested in environmental action, so there’s quite a bit of crossover between these categories.
The Next Generation of Crypto is Here
It’s hard to believe that crypto has only been in the public eye for about a decade, and we’re already advancing into next-gen projects focused on efficiency, speed, and overall improvement.
Keep this list in mind as you research your next crypto investments or just read up on these fascinating projects to see how technology will progress next.
Sources:
Most Sustainable Cryptocurrencies for 2021 | LeafScore
Eco-Friendly Cryptocurrencies | The Times
Bitcoin Electricity Consumption Index | University of Cambridge