With the advent of cryptocurrency, the future has become fairer but with advantages, there also come disadvantages and that is crypto mining, especially Bitcoin consumes huge amounts of electricity. So it is time that we start thinking about eco cryptocurrency. The environmental effect that digital currency has is not new, yes the media coverage revolving around that may be new. So people who did not follow crypto didn’t know this.
What Is An Eco Cryptocurrency?
Cryptocurrencies even had a bad environmental effect as the crypto mining that was carried by them consumed a lot of energy. Choosing another safe side was the eco-friendly side. Many other cryptocurrencies came up with alternative ways to ensure growth in environmental health. Many Proof-of-Stake (PoS) blockchains like Cardano (ADA) and EOS do not have mining. This allows the transaction to take place consuming the same energy that is required for any computer network.
How Do We Measure The Environmental Impact Of Cryptocurrencies?
There always prevails a debate over the most efficient way to measure and define the carbon footprints of digital currencies. What is understood is that the decentralized nature of digital currency requires each transaction to be logged on to the blockchain network and processed by and distributed through thousands of computers that results in a good amount of energy usage for every transaction. It is true that not all cryptos are as energy consumptive as Bitcoin but each digital currency has its own distinctive carbon footprints, and all contribute to the de-growth of environmental health.
There are ways to reduce this. For example, by placing computer farms in cold places where the heat produced by the computers can be reduced. The problem that still prevails is that it is a concern for those fascinated by crypto but is also diligent about the impact that digital currencies leave on the environment.
There are various techniques to measure the energy that has been consumed with kWh (kilowatt hours) per transaction often recorded. Ethereum uses 62.65 while Bitcoin uses 700. It is estimated that the proof-of-stake blockchain is 99% efficient, so any eco coin with this approach shall be favored.
The Idea Of Green Cryptocurrency
The digital currency NANO has been blooming its credentials as an eco cryptocurrency and increased 90% the day after Elon Musk announced that Tesla for the timing would pause accepting Bitcoin for the purchase of cars due to consumption concerns. Tesla has affirmed that it has initiated to accept digital currencies that use less than <1% of what Bitcoin does per transaction. The block lattice technology on which NANO is built is considered “energy efficient cryptocurrency” and an ideal green cryptocurrency.
Here Is A List Of Best Eco Cryptocurrency
After identifying the de-growth of environmental health there came many cryptos that are looking at the environmental consequences. Here is the top eco friendly cryptocurrency 2021 list. We will learn a bit about them only.
Chia cryptocurrency is a new crypto in the market Chia who is claiming itself to be the best in the environmental cryptocurrency 2021 list, that uses neither Proof of stake nor Proof of work but Proof of space and time for their transactions. What remains to be seen is will this crypto live long being the eco cryptocurrency despite so many external factors. Their logo demonstrates “an arm made up of leaves reaching to the budding point” and they have changed the name from “mining” to “farming”.
There are sub sections of coins that are designed to provide green cryptocurrency and one among them is Solarcoin. 1 Solarcoin was mined for one Megawatt hour that has been generated by solar technology. This was their neat idea but now this project seems to be stalled.
BitGreen sought to enable the users to earn their digital currency by participating in “energy efficient” activities, like buying sustainable coffee or car sharing. This coin was useful for transactions only among a few partner websites but their idea to create an eco cryptocurrency behaved sustainability.
The eco cryptocurrency prices vary from coin to coin and there are various eco cryptocurrency platforms from where users can have their eco crypto mediums like Coinbase, Binance, etc.
Alternative Ways To Go Green
Digital currency companies may look to balance their carbon footprint in different ways, like planting a tree for every coin sold or donating to relevant environmental agencies. This is the moral thing to do, but it also creates good business sense. The “Harvard Business Review” asserted that the market size of a product grows 5.6 times faster when it is seen as environmentally friendly. A study by “Capgemini” found that 79% of consumers will change their normal product purchases in favor of companies with environmental and social policies that mix with their own.
It is high time for us to understand that crypto mining is not very different from the mining of any other resources when compared to its electricity requirements. But digital currencies differ in the amount of energy needed for mining.
It is difficult to keep a track of statistics, and the user can be assured of their reliability. While it may be lucrative to jump on eco cryptocurrency, the user should keep in mind that cryptos which are tried-and-tested are likely to be safer. And if you’re interested in digital currency for its decentralized, borderless, non confiscatable, and proven security part, then Bitcoin remains your best option.