- Insights
- Cryptocurrencies
- Stocks
- White Papers
- Industry
- Geography
In recent years, cryptocurrencies have had a significant impact on the global economy, without a doubt. However, cryptocurrencies get a bad rap for their carbon footprint. According to estimates, Bitcoin, the biggest crypto, uses 150 terawatt-hours of power every year, that's more than Argentina uses.
In spite of this, not every cryptocurrency is a power hog. While some cryptocurrencies (especially traditional ones) utilize a lot of computing power, there are also eco-friendly alternatives.
A lot of eco-friendly cryptos use the Proof-of-Stake (PoS) model, not the Proof-of-Work (PoW) model used by coins like Bitcoin, to create blocks and keep track of their state.
Cryptocurrencies that are eco-friendly are likely to gain in popularity as a result of the growing awareness of the need to reduce our environmental footprint.
Based on how much energy each cryptocurrency consumes, we ranked the top eco-friendly cryptocurrencies to help you decide which one to invest in.
So let's get started.
Tamadoge is an ERC-20 token and one of this year's most popular utility tokens. Following a successful presale, this eco-friendly cryptocurrency is coming to Uniswap DEX and LBank, and more will follow.
Tamadoge is a unique combo of meme coin concept, a play-to-earn (P2E) metaverse game, and NFTs. The game's all about digital pets doubled as NFTs and TAMA, the native cryptocurrency of the platform. It is all gathered in a fascinating metaverse called Tamaverse. The world features a variety of challenges that players can take part in together as well as meet and interact with each other.
As these "pets" are part of a metaverse, the eco-friendly factor comes into play. In 2021, non-fungible tokens exploded because of people's emotional connection with them. The players can interact with their virtual pets in a virtual environment, as opposed to keeping them in the real world, which is environmentally harmful.
IMPT has gained a lot of attention in the eco-friendly crypto niche for its innovative way of trading carbon credits. IMPT uses the Polygon blockchain to structure carbon credits as NFTs, allowing anyone to trade them.
The $IMPT token is used for all transactions on the marketplace within the IMPT ecosystem. The $IMPT can be used for buying, selling, and trading carbon credits, providing the basis for a self-sustaining market.
Because $IMPT tokens are exchangeable for carbon credits, users can get these credits for their regular shopping. The question is, how does it work?
Well, this is where IMPT really shines at making carbon credits accessible to everyone.. IMPT partners with over 10,000 popular brands, and these brands donate a chunk of their sales to good causes. As a result, users of IMPT will be rewarded with $IMPT tokens for all goods and services they purchase from these brands.
Algorand's blockchain works on Proof-of-Stake (PoS) and smart contracts, which makes it one of several cryptocurrencies that compete with Ethereum in terms of proving value and validating currency.
As a network, Algorand does not rely on mining and tries to be a game-changer in terms of blockchain sustainability by creating a network that generates no carbon emissions.
As of April 2021, Algorand's blockchain is carbon-neutral. Additionally, this crypto has partnered with ClimateTrade, a company that helps companies be more sustainable.
BitGreen is an eco-friendly cryptocurrency, rewarding environmentally friendly behaviors such as carpooling, biking, and consuming sustainable products.
You can spend BitGreen at vendor sites that accept this eco-friendly cryptocurrency. BitGreen also has a PoS system and is traded on exchanges. Additionally, there's a mobile wallet app so users can trade coins and earn coins by participating in green stuff.
BitGreen is a direct competitor to Bitcoin. In spite of not yet reaching the same level of fame, BitGreen shows promise for continued viability and profitability.
Cardano is one of the most popular eco-friendly cryptocurrencies. A programmable ecosystem for solving real-world problems is what Cardano is all about.
As opposed to Ethereum, Cardano allows people to become members of the network rather than mine new coins. This alone saves almost 0.5 kWh per transaction. Compared to Bitcoin, Cardano uses just 0.01 percent of the energy that Bitcoin does for the same transaction.
Cardano is an excellent option for those seeking an eco-friendly cryptocurrency that's profitable and sustainable at the same time.
In SolarCoin, energy conservation is a real-time, practical process. Using solar power, each megawatt hour of energy produced creates a new solarcoin. As a result, miners, investors, and solar power supporters are incentivized to use solar power.
With SolarCoin, it's possible to generate a great deal of money if you have solar panels. However, this cryptocurrency has a relatively low return, so investors looking for sustainable cryptocurrencies might not find it as attractive.
Nano doesn't keep a chain of every transaction like other cryptocurrencies. In Nano, each user controls his or her own account, making up a lattice of connected blocks. NANO only uses 0.000112 kWh, which is a lot less than Bitcoin and Ethereum.
An ordinary computer can power each transaction because its energy requirements are so small. There's a lot of optimism that Nano's value will go up over the next few years. There is an expectation that the price will quadruple (or more) by 2025, compared to the current $5 price point.
You'd be crazy not to check out Nano if you want a crypto option that's energy-efficient.
Ripple is an open-source, decentralized, and permissionless blockchain technology that lets you settle your payments in a few seconds.
With 100 billion coins in circulation and more coming out all the time, Ripple a good investment for any cryptocurrency investor.
In addition, Ripple's energy consumption is just 0.0079 kWh per transaction, making it one of the most energy-efficient cryptocurrencies.
With a carbon-neutral goal by 2030, Ripple stands out among other eco-friendly cryptocurrencies.
Signum claims to be the first fully sustainable blockchain. Like Chia (another eco-friendly crypto), it uses network users' hard drive space to verify transactions, using a proof of commitment algorithm with no mining involved. Smart contracts, messaging, token creation, and smart contracts can all be done on the network.
Every eco-friendly cryptocurrency has something that makes it different from the rest. However, there are some points that need to be considered before choosing a coin to invest in in order to make an informed decision. Below are some points.
Investors can minimize their carbon footprint by choosing eco-friendly cryptocurrencies. New cryptocurrencies are being developed and released all the time. As long as investors conduct the necessary due diligence and investigate all options, they can take steps to protect the environment while enjoying the financial benefits of cryptocurrency trading.
