Do you remember the time you entered the crypto world and was intrigued by its potential? The time when you were passionate about investing in crypto and getting back your invested amount with profits.

But have you ever thought about the adverse effects these cryptocurrencies have on the environment? Like it or not but they can actually have a negative impact on the Earth’s environment and thus on us humans.

But we all love crypto and can’t just give up on it, right? This gave birth to the concept of green cryptocurrencies.

This green crypto concept is not only eco-friendly but also comes up with many additional benefits. They can act as a barrier against climate change, and global warming.

Let’s explore some valuable insights related to the environmental impact of cryptocurrency in this article!

The Need For Green Cryptocurrencies

As we have touched upon the adverse effects crypto is having on the environment. Let’s have a deep dive to know more about it.

According to the Cambridge Bitcoin Electricity Consumption Index, the mining operation of Bitcoin consumes over 140 terawatt hours in a year. You will be surprised to know that this energy is more than the energy Norway consumes in a year.

This energy consumption can also boil water for many cups of tea continuously in the UK for 30 years.

Not only this, but the traditional concept of crypto mining, and intensive proof of work (POW) consensus have also led to thoughts about green crypto. Because no thrilled soul would be going to stop doing crypto mining soon, but why harm our dear planet?

That is the reason the concept of green cryptocurrencies has been understood by investors and the Blockchain market’s enthusiasts. It is about digital currencies that utilize environmentally friendly techniques and promise sustainable cryptocurrency operations.

We know you must be thinking how the traditional mining of crypto is harming the environment. Here’s an answer.

The traditional mining of crypto has a reliance on fossil fuels, which is why green cryptocurrencies aim to address this issue effectively.

Green cryptocurrencies are mined by using more energy-efficient consensus mechanisms or models that are sustainable and cause no damage to Earth.

Bitcoin Energy Consumption Data Index

Bitcoin causes the most amount of damage when it comes to the environment.

Let’s jump onto statistical data.

Here’s the Bitcoin’s Energy Consumption Index.

• The carbon footprint of Bitcoin mining is 94.89 Mt CO2 per annum, which can be compared to the carbon footprint of the whole country of Nigeria.

• The electrical energy consumption of Bitcoin is 170.12 TWh which can be compared to the power consumption of Poland.

• The electronic waste of Bitcoin mining is 28.69 kt, which can be compared to the small IT equipment waste of the Netherlands.

• The consumption of fresh water is 2,681 GL which can be compared to the total use of water in Switzerland.
  
  

What’s Different About Green Cryptocurrencies?

Let’s understand the eco-friendly blockchain model.

Green cryptocurrencies utilize minimum energy for mining operations if we compare them to the traditional POS algorithm. Apart from another famous consensus mechanism used by green cryptocurrencies, one that stands apart from others is Proof of Stake (PoS).

In PoS, validators (participants of the blockchain network) create new blocks and validate transactions that are based on the number of coins they hold and are willing to "stake" if not returned.

This is very different from PoW (Proof of Work). In PoW miners compete to solve complex mathematical puzzles, and that is why it requires a large amount of computational power.

PoS minimizes energy because it doesn't require any extensive amounts of computational resources to solve puzzles. Proof of stake depends upon the economic security where validators have a financial incentive to act honestly.

It leads toward a more sustainable environment and minimizes the blockchain carbon footprint.

Geen cryptocurrencies consume less energy per transaction because they use the PoS model instead of PoW.

Now, let’s know what are the best green cryptocurrency options out there.

Some of The Best Green Cryptocurrencies

These are the top 5 green cryptocurrencies that you can trade in and still be environmentally friendly.

1- Chia (XCH):

Chia is a green crypto and introduces the Proof-of-Space-and-Time mechanism. This consensus algorithm is a less energy-consumed model if we compare this to the Proof of Work used by Bitcoin.

Moreover, this encourages the use of the unutilized storage space on hard drives rather than consuming vast amounts of energy.

2- Cardano (ADA):

Cardano is one of the leading blockchain platforms that uses a proof-of-stake consensus mechanism. This mechanism is known as Ouroboros. It also consumes less energy if we compare it to the proof-of-work systems of other non-green crypto.

This eco-friendly cryptocurrency also aims to provide a sustainable and scalable infrastructure for validators. This further ensures the best deployment of decentralized applications and smart contracts.

3- Algorand (ALGO):

Algorand is another green crypto. And what makes it one of the trendy green cryptocurrencies is its possession of a $2 billion market capitalization.

The algorithm of Algorand is designed to be energy-efficient and scalable. It is also on its way to creating a more secure, and sustainable blockchain infrastructure.

4- Tezos (XTZ):

Tezos is also a famous green cryptocurrency that ensures a minimal blockchain carbon footprint. This green crypto allows token holders to participate in the consensus process and earn rewards, and they don’t require any special mining equipment for it.

As the consensus process does not require any extra mining equipment, that is how it ensures a more energy-efficient system.

5- Ethereum 2.0 (ETH):

dApp developers love to acquire Ethereum, which is on its way to becoming one of the best sustainable approaches to green crypto. The dApp developers build decentralized applications with backend code that can run on a decentralized peer-to-peer network.

Ethereum is transitioning from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism with Ethereum 2.0. And let us tell you that it is a more secure and scalable energy efficient crypto.

Wrapping Up!

It's clear that eco-friendly green cryptocurrencies are paving the way for a more sustainable future in blockchain technology. Whether you're investing in Chia, Cardano, Algorand, Tezos, or Ethereum 2.0, these green options allow you to engage in crypto trading with a smaller carbon footprint.

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